A16z: Arcade Token can reshape the digital economy

A16z believes that many crypto projects should use “arcade token” — a type of token similar to airline miles or reward points — to attract users and develop the ecosystem. Arcade tokens maintain stable value within a specific platform and are used to perform functions, rather than serving speculative purposes. According to researchers at a16z, this type of token could become a crucial platform for scaling digital economies, just as stablecoins support transactions.

The report provides an example of Blackbird's token, which allows restaurant customers to earn points and redeem rewards through the Web3 platform. Arcade token helps create network effects, increase loyalty, and simplify tokenomics due to its easily predictable value. However, they are not suitable for all projects — especially those blockchain networks that already have their own tokens or are highly speculative.