Definition ∞ Product development funding provides financial resources for creating new products or improving existing ones. This capital covers research, design, prototyping, testing, and market launch activities. In the digital asset space, it specifically supports the creation of new tokens, decentralized applications, blockchain protocols, or features within existing crypto projects. Funding can come from venture capital, initial coin offerings, token sales, or community grants, all aimed at fostering innovation and growth.
Context ∞ The discussion surrounding product development funding in crypto often addresses the volatility of fundraising mechanisms and the need for sustainable economic models beyond initial token sales. A key debate involves balancing speculative investment with genuine utility and long-term project viability. A critical future development includes the maturation of decentralized funding platforms and transparent governance models that align developer incentives with community interests.
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