CoinFund’s David Pakman Says Crypto Still Has a Tokenomics Problem

CoinFund Managing Partner David Pakman believes one of the cryptocurrency sector’s biggest unresolved issues is designing token economies that genuinely reflect the long-term performance of the networks behind them.

Pakman argued that the value of many native crypto tokens remains driven by narratives and social media activity rather than business fundamentals, creating uncertainty for contributors deciding whether to accept immediate payment or retain exposure to potentially volatile project tokens.

He said contributors who expect a network to grow substantially may welcome payment in native tokens, but suggested many younger participants now prefer quicker and more predictable financial outcomes instead of speculative long-term positions.

To address this mismatch, Pakman proposed that early-stage projects consider paying contributors in stablecoins. He said doing so could make participation more attractive for developers and other contributors who do not want to speculate on the future value of a project’s native asset.

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Ethereum’s Lessons for Token Incentives 

Pakman drew on his own experience mining Ethereum, explaining that holding ether proved rewarding as its value appreciated. He added, however, that most projects have failed to deliver similar long-term returns for contributors who received native tokens.

He pointed to Ether.fi as an example where investors would expect a governance token to have a meaningful relationship with the success of the underlying network. Pakman also said the proposed Clarity Act could provide regulatory certainty that strengthens this connection in the future.

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