a16z Proposes Arcade Tokens to Drive Stable In-App Economies

In a new report, venture firm a16z recommends using arcade tokens to create stable, spend-focused economies within crypto apps, boosting user engagement while limiting speculation. Unlike volatile market tokens, arcade tokens maintain a controlled value—similar to in-game credits or airline miles—redeemable for services but non-tradable on exchanges. The report highlights Blackbird’s FLY token, launched in mid-2024 to reward restaurant customers via a Web3 payments platform. By allowing issuers to mint arcade tokens on demand for grants and subsidies, projects can expand ecosystems without pushing holders to swap tokens. While not suited for all protocols, such as layer-one blockchains with established assets, arcade tokens offer a niche solution for real-world integrations. For traders, the emergence of arcade tokens signals a maturing crypto token economy, shifting focus from price speculation to utility-driven models.