Should MetaMask Issue Its Own Token?

CryptoMode MetaMask Growth

MetaMask, the popular Web3 cryptocurrency wallet, may issue its native token soon. Speculators and enthusiasts have been waiting for this token for a while, although nothing has been confirmed yet. The topic came to light during the team’s recent community call. 

A MetaMask Token May Happen

For those unfamiliar with MetaMask, a  browser plugin and mobile application can serve as a cryptocurrency wallet. Users retain control over their funds at all times, as the private keys and backup seed phrases are stored locally. Users can export their wallets to other software solutions if they prefer. MetaMask ahs support for Ethereum and various other blockchains and their assets, creating a compelling solution for all levels of cryptocurrency enthusiasts.

However, the wallet goes one step further by providing access to Web 3.0, or Web3. It is a direct way for MetaMask users to interact with smart contracts or websites rather than creating an account. Moreover, it ensures users can transfer funds directly without going through intermediaries.  In an industry where decentralization is the primary selling point, the Web3 experience will prove crucial to remove trust from the equation and empower users.

During the first-ever community call, MetaMask’s team confirmed they are open to launching a native token. It is not actively explored right now, but in the future, anything is possible. Creating a native token to make this Web3 project community-owned can have numerous benefits. However, before that can happen, there needs to be a compelling use case. Figuring out that aspect may be a bit difficult. 

Moreover, there are other facets to figure out. Issuing the token is one step, but ensuring a fair distribution is a different matter. A token sale could be beneficial for speculative purposes, but it will not offer any benefits for the long-term goals. Governance on its own is not a compelling use case. That may indicate MetaMask will need some extra functionality in the future, although no details are available yet. 

Following The Pack?

Throughout 2020, there have been several token airdrops that mainly serve speculative purposes. Tokens for projects like Uniswap, 1Inch, PoolTogether, and other Web3 services have all seen ups and downs in value. Since Uniswap and 1Inch airdropped free tokens to early supporters, these assets have tremendous upside potential. However, they also have a few use cases, mainly in the DeFi space. It is unclear if MetaMask wants to go down that same route or try something else entirely. 

With over 5 million monthly active users, MetaMask has become the go-to tool to access DeFi on Ethereum and other blockchains. Airdropping a token to everyone will certainly trigger excitement, but mainly speculative. Finding proper use cases for this token will be a steep challenge, as there isn’t anything in particular that would require the use of such an asset.

However, the team will introduce support for asset bridging across various chains and Layer 2 scaling solutions. That is something everyone can look forward to 

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