TechFlow News, March 8: According to a CoinDesk report, Yuval Rooz, Co-Founder of the Canton Network and CEO of Digital Asset, stated that most smart contract networks market themselves as “global financial infrastructure,” yet there remains a severe disconnect between their actual transaction volumes and valuations—often in the billions of dollars. He bluntly remarked that if a blockchain processes only minimal economic value yet commands a $10–11 billion valuation, “it is, in essence, no different from a meme coin.”
Rooz pointed out that part of this issue stems from flawed token design. Many smart contract networks mechanically replicate Bitcoin’s issuance model—distributing newly minted tokens as rewards to validators—yet Bitcoin is an asset class, not a programmable platform; such replication is misguided. When on-chain economic activity is weak, persistent inflation continuously dilutes holders’ equity, making it impossible for the token’s value to accrue. Citing Hyperliquid as an example, he argued that “generating revenue and using it to buy back tokens” offers a far more compelling rationale for holding the token.
On stablecoins, Rooz believes they have yet to achieve genuine product-market fit: “Only when over 50% of their use cases are unrelated to crypto trading can they be considered truly deployed.”
