The most effective onchain funding model merges transparent public market mechanics with flexible private pricing structures. When you strip away the noise, what really matters for investors is the exit strategy—getting tangible returns when the project reaches a liquidity event. Everything else becomes secondary.
Here's where things get interesting: traditional VC and angel capital flows toward equity upside and exit multiples, not revenue streams. Revenue share agreements, especially those locked in from the start, often carry predatory undertones in venture circles. They signal desperation or weak unit economics. What moves real money into Web3 projects? Clear pathways to ownership value and exit opportunities.
The revenue buyback mechanism deserves a closer look too. It reshapes how value capture works in onchain ecosystems. Rather than relying on dilutive equity rounds, projects can use buyback mechanics to reward holders while maintaining lean capital structures. That's where onchain primitives genuinely outpace traditional models.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
15 Likes
Reward
15
9
Repost
Share
Comment
0/400
SerumSquirter
· 01-09 23:26
Basically, it's still the escape velocity approach. Without a clear exit, you can't raise real funds... The revenue share model is fixed from the start, which makes the project seem less confident.
View OriginalReply0
GateUser-1a2ed0b9
· 01-09 22:34
Basically, it still depends on whether you can cash out; anything that can't be cashed out is all just virtual.
View OriginalReply0
ForumMiningMaster
· 01-09 10:58
In plain terms, there must be a clear exit mechanism; without it, everything is meaningless.
View OriginalReply0
ChainMemeDealer
· 01-09 09:12
At the end of the day, it's just about figuring out how to cut the leeks and exit... Revenue buyback sounds very fancy, but after seeing this kind of fundraising trick so many times, it's just the same old wine in a new bottle.
View OriginalReply0
SolidityJester
· 01-07 00:00
In the end, there still needs to be a clear exit strategy. Projects without an exit are pointless even if they are transparent. The profit-sharing model is indeed prone to failure; the more appealing the terms sound, the more painful they can be.
View OriginalReply0
TokenAlchemist
· 01-07 00:00
ngl the revenue buyback angle is where most people sleep. they're still thinking in dilution curves when the real alpha is in understanding state transitions of token mechanics during liquidation cascades. most protocols just copy-paste without mapping inefficiency vectors properly
Reply0
WalletWhisperer
· 01-06 23:58
exit strategies are just cope for when the actual economics never materialize... watched enough wallet clustering patterns to know when founders are already pricing in the dump
Reply0
StakeHouseDirector
· 01-06 23:43
In plain terms, exit is the real deal, while revenue share sounds like a desperate project with no money struggling... The buyback mechanism is indeed fierce, much more reliable than the typical "cutting leeks" style financing.
View OriginalReply0
RunWithRugs
· 01-06 23:34
In plain terms, export is the key, everything else is just empty talk.
The most effective onchain funding model merges transparent public market mechanics with flexible private pricing structures. When you strip away the noise, what really matters for investors is the exit strategy—getting tangible returns when the project reaches a liquidity event. Everything else becomes secondary.
Here's where things get interesting: traditional VC and angel capital flows toward equity upside and exit multiples, not revenue streams. Revenue share agreements, especially those locked in from the start, often carry predatory undertones in venture circles. They signal desperation or weak unit economics. What moves real money into Web3 projects? Clear pathways to ownership value and exit opportunities.
The revenue buyback mechanism deserves a closer look too. It reshapes how value capture works in onchain ecosystems. Rather than relying on dilutive equity rounds, projects can use buyback mechanics to reward holders while maintaining lean capital structures. That's where onchain primitives genuinely outpace traditional models.