Dapp Monetization

Definition ∞ Dapp monetization describes the methods by which decentralized applications generate revenue or economic value. Unlike traditional applications, Dapp monetization frequently uses tokenomics, transaction fees, or protocol-specific incentives rather than subscriptions. Strategies include governance token sales, liquidity provider rewards, or fees collected from on-chain actions. The economic design of a Dapp is central to its long-term viability and utility.
Context ∞ Dapp monetization is a central consideration for developers and investors in the decentralized finance and Web3 sectors. Current discussions often concern sustainable tokenomics models and the balance between user incentives and protocol revenue generation. The viability of various Dapp business models in a competitive and evolving digital asset landscape is a continuous point of analysis.