Web3 Projects: Build Products Before Tokens

[Chawla Solutions]

In today’s crypto market, launching with a token has almost become the default. But a token is not a product — it’s only a mechanism for interaction. The real value of any Web3 startup lies in its product and the experience it delivers.

Why the Product Comes First
Users don’t join platforms because of a token; they stay because of the utility, engagement, and value the product provides. A strong product generates organic demand, which naturally supports token adoption. On the other hand, if the token itself is the only incentive, the project becomes unsustainable once speculation fades.

Examples That Prove the Point
• FriendTech launched as a platform first and later layered tokenization on top.
• Lens Protocol built a functional decentralized social graph where the token plays a supporting role.
• Arbitrum grew into one of the largest L2 ecosystems long before releasing its governance token.

Key Lesson
A token cannot save a weak product. But a compelling product can transform its token into a thriving ecosystem by adding utility, governance, and liquidity.

Conclusion
The Web3 space is shifting toward fundamentals. Projects that prioritize building real value first — and introduce tokens later — will create ecosystems that last. In short: start with the product, not inflationary tokenomics.