The New Priority for Public Blockchains: Building to Earn
Amid recent debates over fee structures among new layer-1 networks, a key figure from BNB Chain shifted the conversation to a more foundational issue. According to Nina Rong, Executive Director of Growth at BNB Chain, the industry's top priority is no longer a race to the bottom on transaction costs.
She argues that the critical challenge for every public blockchain today is to discover a sustainable business model. The revenue generated must then be funneled back into technological advancement and ecosystem growth, creating a self-reinforcing cycle of development.
Moving Beyond the Foundation Model
For the past five years, the playbook for many blockchain foundations has been twofold: distributing grants and making investments, while simultaneously campaigning for lower gas fees. This approach has been instrumental in bootstrapping early-stage ecosystems.
However, Rong stresses that this model is insufficient for the long haul. "Blockchain companies must establish solid commercial structures," she notes, implying that networks need to operate like viable tech businesses that can generate and capture value independently.
Diversifying Revenue Streams
What could a sustainable model look like? The possibilities extend beyond simple transaction fees.
- Fee-Based Models: Transaction fees themselves can be a revenue source, provided the economic design balances user cost with network security.
- Revenue Sharing: Forming partnerships with top-tier dApps or service providers for a share of their profits.
- Enterprise Solutions: Generating income through tailored blockchain solutions, technical services, or certifications for businesses.
The underlying principle is clear: public chains must identify a monetization strategy aligned with their technology and community, and reinvest proceeds into long-term health and security. This search for economic sustainability will likely redefine the competitive landscape in the coming years.