Privacy applications and token economics: a mismatch?

Take a hard look at the privacy app ecosystem—do these projects really need native tokens to function? It's a question worth asking.

Many privacy-focused platforms launched tokens in pursuit of decentralization, but the execution often falls short. Users access privacy features through traditional infrastructure, governance remains concentrated, and token holders rarely influence core protocol decisions. The token becomes decorative rather than functional.

Some argue tokens enable incentive mechanisms, but surveillance-resistant networks can operate via subscription models, service fees, or community funding. Monero and Signal survived without tokenization.

The hard truth: not every privacy project needs its own blockchain primitive. Some tokens were issued for liquidity and early investor returns rather than genuine utility. When privacy is the actual product, adding tokenomics might just complicate adoption and create regulatory friction.

What's your take—are privacy tokens a necessity or a legacy of 2017 hype?