Curve Founder Urges DeFi Sector to Embrace Revenue Over Incentives Amid Market Evolution

- DeFi protocols urged to prioritize revenue over token incentives for long-term success. - Evolving user preferences and market dynamics cited as key drivers for strategic shift. Michael Egorov, founder of Curve Finance, has advocated for a fundamental shift in decentralized finance (DeFi) protocols, urging the sector to move away from relying on inflationary token rewards and instead focus on generating sustainable revenue. On February 23, 2026, Cointelegraph reported his remarks, which mark a pivotal moment for DeFi by reflecting a growing emphasis on aligning with changing user preferences and market conditions. According to the Cointelegraph report, Egorov described the diminishing appeal of token emissions as a strategy, noting that the "DeFi summer" of 2020—characterized by high-yield token incentives—is no longer viable. Egorov stated that users have recalibrated their priorities, as they now place greater value on technical security and reliability for long-term gains. He argued that speculative incentives are losing effectiveness in attracting liquidity amid today’s more mature market landscape. Egorov also noted key shifts in market dynamics that underscore the need for DeFi protocols to adapt, as retail traders increasingly focus on perpetual futures markets while institutional investors prioritize spot assets. He emphasized that to sustain its growth, the sector must pivot to focus on revenue generation and improved capital efficiency instead of relying on high annual yields. In addition, he noted that these changes are crucial for building a more resilient DeFi ecosystem. As of February 23, at 15:09 UTC, Curve DAO Token (CRV) is trading at $0.226—a 1.13% decline in the past 24 hours, according to market data.