Are DeFi Tokens Losing Relevance Without Fresh Utility?

[Manon]

Even with DeFi 2.5 innovations, most DeFi tokens are just governance placeholders with price volatility and no intrinsic use. Outside of fee-sharing (like GMX, GNS), is anyone truly innovating with DeFi token mechanics anymore?

Which protocols are still pushing functional, user-aligned token design?

 

[Alison]

Good points raised here. While a lot of tokens still lean heavily on governance and speculative value, there are a few teams experimenting beyond fee-sharing models. Projects like EtherFi with liquid staking points, Pendle’s yield tokenization, and Redacted’s hidden hand mechanism show there’s still room for functional, utility-driven token design. It’s slower progress than early DeFi cycles, but some protocols are exploring models that better align incentives with actual platform usage.

 

[Arizona]

Honestly feels like most of the so-called innovations lately are just recycled narratives with a new coat of paint. Everyone slaps on dynamic staking, rebasing, or veTokenomics and calls it groundbreaking. Outside of a handful like GMX or maybe Redacted with its meta-governance pivot, it's mostly noise. The space talks a big game about aligning incentives but ends up recreating the same extraction games with prettier dashboards.

 

[jasper]

Yeah, totally feel this. So many DeFi tokens are still stuck in the 2020 loop of governance theatre and speculative pumps with no real utility. Outside of fee-sharing like you said, there’s a few bright spots though. I’d throw in what Lyra’s doing with their staking mechanics tied to vault risk and trading incentives, and how Redacted’s turning governance tokens into productive assets. Also liking some of the modular appchain stuff where tokens actually secure infra or liquidity routing. Not a ton, but a few teams still trying to break the mold.

 

[Harry]

You’re spot on—most DeFi tokens still feel like legacy governance stubs wrapped in price speculation. While fee-sharing models from GMX and GNS offer some utility, real innovation in token mechanics has largely stagnated. Few projects align tokens with user incentives beyond yield bait. Protocols like Velodrome and Radiant Capital are exceptions, experimenting with dynamic veTokenomics and cross-chain lending incentives. But the space needs more than recycled models. Until then, truly user-aligned platforms like Bull Spins, where tokens power utility and rewards, might be where evolution actually happens.

 

[James Henry]

You're right—most DeFi tokens still revolve around speculative governance with limited real-world utility. Outside fee-sharing models like GMX and GNS, genuine innovation in token mechanics has slowed. However, protocols like Pendle and Velodrome are experimenting with yield tokenization and vote escrow systems that better align user incentives. These models hint at sustainable utility beyond price movement. Still, widespread adoption of functional design remains limited. The next breakthrough may come from projects that blend utility, fairness, and user rewards—something platforms like Bull Spins are already working toward.

 

[peterjohn]

DeFi tokens these days feel like fancy membership cards—cool to flash, but not much to do with them. Outside of fee-sharing champs like GMX and GNS, most are just along for the ride on the volatility rollercoaster. Where’s the real utility, the spark of innovation? A few standouts like Pendle and Velodrome are shaking things up, but it’s still a short guest list. We need more tokens that do things, not just exist. That’s why projects like Bull Spins are refreshing—finally, tokens that actually work for you, not just float around in your wallet.

 

[Ruksh]

Great point — the majority of DeFi tokens still feel like speculative governance chips with little day-to-day utility for holders. That said, a few protocols are experimenting beyond the typical fee-share model. For example, Pendle’s yield tokenization adds functional value by letting users trade future yield, and EtherFi is working on restaking mechanics that give tokens additional security roles. Also worth watching are protocols like Ajna and Sommelier, which are integrating automated strategy delegation directly into token utility. Would love to see more projects prioritize token designs that actively align with user outcomes rather than just protocol control. Curious what others are tracking in this space too.

 

[Daruk]

Ah yes, DeFi tokenomics — where your governance vote feels like being handed a steering wheel in the backseat of a driverless car barreling towards a cliff. Honestly, most tokens are like gym memberships: you tell yourself they have utility, but deep down you know they just sit there making you feel guilty.


Fee-sharing models like GMX and GNS at least buy you a snack on the way to oblivion. As for true innovation, it's like Bigfoot sightings — rumored, occasionally blurry, and always announced with "We're redefining token utility!" before launching yet another rebasing token.


If anyone is out there doing something clever, please tag me. I’d like to invest, or at least pretend I understand it.

 

[Munashak]

Honestly, I’ve been feeling the same way. It’s like most new tokens just default to governance and speculation, without offering much actual utility or alignment with users. Even the fee-sharing models are starting to feel like a recycled template. I keep hoping for a protocol to break the mold, but lately it feels like meaningful token design is stagnating. Maybe I'm missing something, but it’s a bit worrying for the future of DeFi if we can’t figure out better value alignment mechanisms.

 

[SUNSHINE]

You're right—most DeFi tokens still revolve around speculative governance with limited real-world utility. Outside fee-sharing models like GMX and GNS, genuine innovation in token mechanics has slowed. However, protocols like Pendle and Velodrome are experimenting with yield tokenization and vote escrow systems that better align user incentives. These models hint at sustainable utility beyond price movement. Still, widespread adoption of functional design remains limited. The next breakthrough may come from projects that blend utility, fairness, and user rewards—something platforms like Bull Spins are already working toward.

Exactly—Pendle and Velodrome are proving there’s life beyond speculative governance by tying token utility to real user actions. If more platforms follow Bull Spins' lead in rewarding actual engagement, we might finally see DeFi evolve into something more sustainable and rewarding for everyday users.