4TH GEN CRYPTO NEEDS COLLABORATIVE TOKENOMICS AGAINST TECH GIANTS — HOSKINSON

Last updated: June 19, 2025, 20:26 | Written by: Raoul Pal

The Web3 landscape is rapidly evolving, and a crucial debate is emerging: How can decentralized technologies compete against the established power of centralized tech giants like Apple, Amazon, and Google? The following era of cryptocurrency initiatives should embrace a extra collaborative method to compete with main centralized tech firms getting into the Web3 house, based on Cardano founder Charles Hoskinson. Talking at Paris Blockchain Week 2025, Hoskinson stated one of many important criticisms of the crypto and decentralized finance (DeFi) house is its round financial [ ]Cardano founder Charles Hoskinson believes the answer lies in collaborative tokenomics. The next generation of cryptocurrency projects must embrace a more collaborative approach to compete with major centralized tech companies entering the Web3 space, according to Cardano founder Charles Hoskinson.Speaking at Paris Blockchain Week 2025, Hoskinson said one of theHe argues that the next generation of cryptocurrency projects, often referred to as 4th generation crypto, must embrace a more cooperative and interconnected approach to economic incentives to effectively rival these behemoths.Speaking at Paris Blockchain Week 2025, Hoskinson emphasized that the current crypto and decentralized finance (DeFi) space is often criticized for its circular economic structure, where value primarily circulates within the ecosystem without significant real-world impact.This inward focus weakens its ability to challenge the expansive reach and resources of traditional tech companies.

Hoskinson's call to action highlights the need for a paradigm shift. Fourth-generation cryptocurrencies need more collaborative economic incentives against the growing competition from centralized firms, Cardano's Hoskinson said. 4th gen crypto needs collaborativeInstead of isolated projects vying for market share within a limited crypto space, he envisions a future where blockchain initiatives work together, sharing resources, building interoperable systems, and creating tokenomic models that benefit the entire ecosystem. ADAUSD Cardano 4th gen crypto needs collaborative tokenomics against tech giants Hoskinson The next generation of cryptocurrency projects must embrace a more collaborative approach to compete with major centralized tech companies entering the Web3 space, according to Cardano founder CharlesThis collaborative approach is not just about altruism; it's about survival.By pooling their strengths and building bridges to the real world, 4th gen crypto projects can unlock new value streams, attract a wider user base, and ultimately, compete more effectively against the centralized giants that are increasingly eyeing the Web3 space.

The Challenge: Centralized Tech vs.Decentralized Ideals

The rise of Web3 has promised a new era of decentralization, empowering individuals and communities by giving them greater control over their data and digital assets. ETHUSD Ethereum 4th gen crypto needs collaborative tokenomics against tech giants Hoskinson. The next generation of cryptocurrency projects must embrace a more collaborative approach toHowever, the dominance of centralized tech companies poses a significant threat to this vision.These companies already possess massive user bases, vast technological infrastructure, and established brand recognition.They can leverage these advantages to quickly adapt to Web3, potentially dominating the space and undermining the principles of decentralization.

Here are some of the key challenges facing the crypto space in its competition against tech giants:

User Acquisition: Attracting users to decentralized platforms is often difficult, especially when compared to the seamless onboarding experiences offered by established tech companies.
Scalability: Many blockchain networks struggle to handle the transaction volumes required for mainstream adoption, leading to high fees and slow processing times.
Regulation: The regulatory landscape surrounding cryptocurrencies remains uncertain, creating hurdles for businesses and deterring institutional investment.
Network Effects: Centralized platforms benefit from strong network effects, where the value of the platform increases as more users join.
Resources: Tech giants have significantly more capital and personnel to dedicate to Web3 development compared to most crypto projects.

Hoskinson's Solution: Collaborative Tokenomics for 4th Gen Crypto

Hoskinson's proposed solution centers around collaborative tokenomics, a strategic approach to designing and managing token economies that fosters cooperation and interdependence between different projects and stakeholders.This goes beyond simply integrating with other DeFi protocols; it involves fundamentally rethinking how value is created and distributed within the crypto ecosystem.

He argues that instead of competing for the same limited resources, crypto projects should focus on creating synergistic relationships, where each project contributes to the overall growth and value of the ecosystem. Hoskinsin said that to have a chance against the centralized technology giants joining the Web3 industry, cryptocurrency projects need more collaborative tokenomics and market structure. Charles Hoskinson. Source: CointelegraphThis can be achieved through various mechanisms, including:

Shared Infrastructure: Developing common tools, libraries, and infrastructure that can be used by multiple projects, reducing development costs and promoting interoperability.
Cross-Chain Compatibility: Building bridges between different blockchain networks, allowing users to seamlessly transfer assets and interact with applications across multiple chains.
Token Swaps and Liquidity Pools: Creating liquidity pools and token swap mechanisms that facilitate the exchange of tokens between different projects, fostering greater economic integration.
Governance DAOs: Establishing decentralized autonomous organizations (DAOs) that allow stakeholders from different projects to collectively govern the development and evolution of the ecosystem.
Joint Marketing and Branding Efforts: Collaborating on marketing campaigns and branding initiatives to raise awareness of the entire ecosystem and attract new users.

Understanding Tokenomics: The Foundation of a Collaborative Ecosystem

Tokenomics, a portmanteau of ""token"" and ""economics,"" refers to the economics of a cryptocurrency token. The next generation of cryptocurrency projects must embrace a more collaborative approach to compete with major centralized techIt encompasses the design, distribution, and management of a token's supply, as well as the mechanisms that incentivize users to participate in the network. Charles Hoskinson emphasizes the need for collaborative tokenomics to compete with tech giants in Web3. (ENG)A well-designed tokenomic model is crucial for the long-term success of any crypto project.

Key elements of tokenomics include:

Token Supply: The total number of tokens that will ever exist, and how they are distributed.
Token Distribution: How tokens are allocated to different stakeholders, such as founders, investors, developers, and users.
Incentive Mechanisms: Mechanisms that reward users for contributing to the network, such as staking, liquidity mining, and governance participation.
Burning Mechanisms: Mechanisms that permanently remove tokens from circulation, reducing supply and potentially increasing value.
Governance Mechanisms: Mechanisms that allow token holders to participate in the decision-making process of the project.

In the context of collaborative tokenomics, the goal is to design token models that incentivize collaboration and interdependence between different projects.This requires careful consideration of how tokens are distributed, how they are used, and how they contribute to the overall growth of the ecosystem.

Examples of Collaborative Tokenomics in Practice

While the concept of collaborative tokenomics is still relatively new, several projects are already experimenting with innovative approaches to foster cooperation and interdependence. The next generation of cryptocurrency projects must embrace a more collaborative approach to compete with major centralized tech companies entering the Web3 spaHere are a few examples:

Cosmos: The Cosmos network is designed to be an ""internet of blockchains,"" allowing different blockchain networks to communicate and transact with each other. 4th gen crypto needs collaborative tokenomics against tech giants Hoskinson Ap The next generation of cryptocurrency projects must embrace a more collaborative approach to compete with major centralized tech companies entering the Web3 space, according to Cardano founder Charles Hoskinson.Cosmos utilizes the Inter-Blockchain Communication (IBC) protocol, which enables secure and reliable cross-chain communication.
Polkadot: Similar to Cosmos, Polkadot is a multi-chain network that allows different blockchains (parachains) to connect and interoperate. 4th gen crypto needs collaborative tokenomics against tech giants Hoskinson The next generation of cryptocurrency projects must embrace a more collaborative approach toPolkadot's relay chain provides security and interoperability for its parachains.
Balancer: Balancer is a decentralized exchange (DEX) that allows users to create and manage customized liquidity pools. TRXUSD TRON 4th gen crypto needs collaborative tokenomics against tech giants Hoskinson. The next generation of cryptocurrency projects must embrace a more collaborative approach to competeBalancer's pools can contain multiple tokens, enabling users to provide liquidity and earn trading fees on a diversified portfolio of assets.
Yearn.finance: Yearn.finance is a DeFi aggregator that automatically optimizes users' yield farming strategies.Yearn.finance integrates with multiple DeFi protocols to find the highest-yielding opportunities for its users.

Beyond Technology: The Importance of Community and Culture

While collaborative tokenomics is essential, it's only one piece of the puzzle. The next generation of cryptocurrency projects must embrace a more collaborative approach to compete with major centralized tech companies entering the Web3 space, according to Cardano founder Charles Hoskinson.To truly rival tech giants, the crypto space also needs to cultivate a culture of collaboration and community.This means fostering open communication, sharing knowledge, and working together to overcome common challenges.

Creating a strong community involves:

Open-Source Development: Encouraging open-source development and allowing anyone to contribute to the codebase.
Transparent Governance: Implementing transparent governance mechanisms that allow the community to participate in decision-making.
Educational Resources: Providing educational resources to help users understand the technology and participate in the ecosystem.
Community Events: Organizing events and meetups to bring the community together and foster connections.

Addressing the Circular Economy Criticism

Hoskinson's critique of the crypto space's ""circular economy"" highlights a fundamental problem: the lack of real-world value creation. Trusted News Discovery Since 2025. Global Edition. Wednesday, ApMany crypto projects focus primarily on internal transactions and speculation, without contributing to the broader economy.This limits their long-term sustainability and their ability to compete with traditional businesses.

To address this issue, 4th gen crypto projects need to focus on:

Real-World Use Cases: Developing applications that solve real-world problems and provide tangible value to users.
Integration with Traditional Industries: Building bridges between the crypto space and traditional industries, such as finance, healthcare, and supply chain management.
Onboarding Non-Crypto Users: Making it easier for non-crypto users to access and use decentralized applications.
Creating New Economic Opportunities: Generating new economic opportunities for individuals and communities through decentralized technologies.

Regulatory Considerations and the US Foothold for Tech Giants

The evolving regulatory landscape plays a crucial role in the competition between centralized tech giants and decentralized crypto projects. The next generation of cryptocurrency projects must embrace a more collaborative approach to compete with major centralized tech companies entering theHoskinson acknowledges that US regulation, in particular, could inadvertently provide a foothold for companies like Apple and Amazon in the Web3 space.

Here's why:

Existing Infrastructure: Tech giants already have established legal and compliance departments, making it easier for them to navigate the complex regulatory environment.
Brand Recognition: Trusted brands have an advantage in attracting users and gaining regulatory approval.
Lobbying Power: Large corporations have the resources to lobby governments and influence regulations in their favor.

To counter this, the crypto space needs to actively engage with regulators and advocate for policies that promote innovation and protect users.This includes:

Developing Clear Regulatory Frameworks: Working with regulators to develop clear and consistent regulatory frameworks for cryptocurrencies.
Promoting Innovation-Friendly Policies: Advocating for policies that encourage innovation and experimentation in the crypto space.
Educating Regulators: Educating regulators about the benefits of decentralized technologies and the importance of fostering a level playing field.

Looking Ahead: The Future of Collaborative Crypto

The future of crypto depends on its ability to adapt and evolve.Hoskinson's call for collaborative tokenomics is a crucial step in the right direction.By embracing cooperation, fostering community, and focusing on real-world value creation, 4th gen crypto projects can overcome the challenges they face and compete effectively against the centralized tech giants that are increasingly entering the Web3 space.

Practical Steps for Crypto Projects:

Identify Potential Partners: Look for projects that complement your own and share a similar vision.
Develop Interoperable Solutions: Focus on building bridges between different blockchain networks and applications.
Design Collaborative Tokenomic Models: Create token models that incentivize collaboration and interdependence.
Engage with the Community: Foster open communication and encourage community participation.
Focus on Real-World Use Cases: Develop applications that solve real-world problems and provide tangible value.

FAQ: Collaborative Tokenomics and the Future of Crypto

What is 4th Generation Crypto?

While there's no universally agreed-upon definition, 4th generation crypto generally refers to blockchain projects that aim to solve the scalability, interoperability, and sustainability issues faced by earlier generations. Hoskinsin said that to have a chance against the centralized technology giants joining the Web3 industry, cryptocurrency projects need more collaborative tokenomics and market structure.These projects often focus on building more efficient consensus mechanisms, enabling cross-chain communication, and creating more sustainable economic models.

Why is Collaboration Important in Crypto?

Collaboration is essential for the long-term success of the crypto space.By working together, projects can pool their resources, share knowledge, and create more robust and innovative solutions. The next generation of cryptocurrency projects must embrace a more collaborative approach to compete with major centralized tech companies entering the Web3 space, according to Cardano founder Charles Hoskinson.Speaking at Paris Blockchain Week 2025, Hoskinson said one of the main criticisms of the crypto and decentralized finance (DeFi) space isCollaboration also helps to address the fragmentation of the crypto ecosystem and promote greater interoperability.

What are the Risks of a Circular Economy in Crypto?

A circular economy in crypto refers to a situation where value primarily circulates within the crypto ecosystem without significant real-world impact.This can lead to instability, speculation, and a lack of long-term sustainability.It also limits the potential for crypto to disrupt traditional industries and create new economic opportunities.

How Can Crypto Projects Attract Non-Crypto Users?

Attracting non-crypto users requires making it easier to access and use decentralized applications. The next generation of cryptocurrency projects must embrace a more collaborative approach to compete with major centralized tech companies entering the Web3 space, according to Cardano founder Charles Hoskinson.Speaking at Paris Blockchain Week 2025, Hoskinson said one of the main criticisms of the crypto and decentralized finance (DeFi) space is its circular economy, which often meansThis includes simplifying the user experience, providing educational resources, and focusing on real-world use cases that appeal to a wider audience. Related: 4th gen crypto needs collaborative tokenomics against tech giants Hoskinson The move could significantly expand blockchain s reach. UFC broadcasts reach more than 950 millionProjects also need to address concerns about security, privacy, and regulation.

How Can Regulation Help or Hinder the Growth of Crypto?

Regulation can both help and hinder the growth of crypto. VeChain, a layer-1 blockchain platform focused on real-world applications, has added Ultimate Fighting Championship (UFC) CEO Dana White as its newest official adviser to raise more mainstreamClear and consistent regulations can provide legal certainty, attract institutional investment, and protect users.However, overly restrictive regulations can stifle innovation and drive businesses to other jurisdictions.It's important for regulators to strike a balance between protecting users and fostering innovation.

Conclusion: Embracing Collaboration for a Decentralized Future

Charles Hoskinson's call for collaborative tokenomics is a wake-up call for the crypto space.The rise of centralized tech giants in Web3 presents a significant challenge, but it also provides an opportunity.By embracing cooperation, fostering community, and focusing on real-world value creation, 4th gen crypto projects can create a more decentralized, equitable, and sustainable future. ETHUSD Ethereum 4th gen crypto needs collaborative tokenomics against tech giants Hoskinson The next generation of cryptocurrency projects must embrace a more collaborative approach to compete with major centralized tech companies entering the Web3 space, according to Cardano founder CharlesThe key takeaways are clear: collaboration is not just a nice-to-have; it's a necessity for survival in the evolving digital landscape. The next generation of cryptocurrency projects must embrace a more collaborative approach to compete with major centralized tech companies entering the Web3 space, according to Cardano founder Charles Hoskinson.Speaking at Paris Blockchain Week 2025, Hoskinson said one of the main criticisms of theBy adopting these principles, crypto can truly challenge the status quo and fulfill its promise of a decentralized future.

Ready to contribute to a collaborative crypto future? BTCUSD Bitcoin 4th gen crypto needs collaborative tokenomics against tech giants Hoskinson The next generation of cryptocurrency projects must embrace a more collaborative approach to compete with major centralized tech companies entering the Web3 space, according to Cardano founder CharlesStart by researching projects with similar goals and exploring opportunities for partnership and shared development.