Bitwise CIO Says Regulatory Shifts and Protocol Upgrades Are Strengthening Tokenholder Economics
Growing momentum around token value capture could become one of the most important forces shaping the digital asset market in 2026, according to comments from Bitwise chief investment officer Matt Hougan. As new regulations take effect and major networks roll out economic upgrades, Hougan believes that crypto tokens are entering a phase where they will return more value directly to holders.
Hougan noted that the recent market turbulence has overshadowed several developments that may prove transformative. “Many of today’s tokens were designed in an era when returning value was considered risky, so most leaned toward vague governance models. That dynamic is being unwound under the new regulatory climate,” he said. He expects these shifts to become far more visible in 2026.
Uniswap Shows How Token Economics Are Changing
One of the clearest examples is the recent surge in Uniswap’s native token. The project introduced a set of proposals aimed at strengthening UNI’s economic design, including a protocol fee mechanism that would burn a portion of trading fees and a new system designed to enhance liquidity provider incentives.
Hougan said Uniswap’s proposal represents a turning point for governance tokens. “The criticism has always been that Uniswap’s activity didn’t benefit UNI holders. But flipping the fee switch changes that entirely. If implemented, roughly 16% of fees would go toward burning UNI,” he explained. He believes such a change could eventually push UNI into the market’s top 10 assets.
Ethereum’s Fusako Upgrade Could Lead Market Recovery
Hougan also pointed to Ethereum’s upcoming Fusako upgrade, expected to go live in December, as a potential catalyst for strengthening ETH’s economic model. The upgrade includes execution-layer enhancements and improvements to staking incentives—developments he argues could meaningfully increase Ethereum’s value capture.
“If Fusako launches as anticipated, I think the market will soon recognize its impact. It’s an under-appreciated catalyst and a reason ETH could lead the rebound,” he said.
XRP Community Explores New Value Mechanisms
The trend extends beyond Ethereum and Uniswap. Hougan noted that the XRP community is discussing staking-based rewards, which would reshape how value flows back to tokenholders.
“People often think value capture is static, but it’s not. It’s rising across the ecosystem,” he said. Hougan believes this structural shift could be a defining force behind a stronger crypto cycle in 2026.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.