Curve founder says DeFi must ditch token emissions for real revenue

CoinTelegraph

by Ezra Reguerra

February 23, 2026

AI-Generated Deep Dive Summary

Decentralized finance (DeFi) is facing a critical shift in its approach to growth, according to Curve Finance founder Michael Egorov. In an interview with Cointelegraph, Egorov emphasized that protocols must move away from relying on token emissions as incentives to attract liquidity and instead focus on generating real revenue streams. He argued that the current model of using inflationary tokens to sustain growth is becoming less effective, highlighting the importance of sustainable business practices in DeFi. Egorov explained that the use of token incentives, which often involve distributing tokens to users who provide liquidity or participate in protocols, has reached a point where it no longer delivers the desired results. As more projects adopt this approach, the market becomes saturated, and the value of these tokens diminishes due to overissuance. He stressed that for DeFi platforms to thrive, they need to derive yield from actual revenue generation rather than relying on token-based rewards. The founder’s comments come at a time when many DeFi protocols are grappling with challenges such as declining liquidity and increased competition. By advocating for real revenue models, Egorov suggests that projects should explore alternative income streams, such as fees from transactions or interest-bearing assets. He also questioned the utility of tokens if they do not serve a clear purpose beyond acting as incentives, implying that some projects may be better off without token issuance altogether. This perspective aligns with growing industry discussions about the long-term viability

Verticals

cryptoblockchain

Originally published on CoinTelegraph on 2/23/2026