A Structural Look at Vanar: Usage-Driven Chains and Hidden Frictions
Vanar represents a growing class of L1s built for users first, capital second. That design choice matters more than it appears. In consumer-oriented chains, activity is often abundant but unevenly monetized. On-chain data typically shows frequent low-value transactions tied to gameplay, digital assets, or brand interactions, rather than continuous value settlement. This creates a market structure where usage does not automatically translate into liquidity depth.
One overlooked risk is token demand elasticity. When transaction fees are intentionally kept low to improve UX, the native token’s role as an economic sink weakens. Demand becomes speculative or event-based, rather than structural. In these conditions, price action is more sensitive to narrative shifts than to sustained on-chain fundamentals.
There’s also a coordination challenge at the protocol level. If validators rely on inflationary rewards while application usage does not meaningfully increase fee revenue, long-term security depends on governance discipline. Chains like Vanar must carefully balance subsidized growth with eventual economic normalization—something many ecosystems delay too long.
Liquidity fragmentation is another quiet issue. Capital tied to specific games or metaverse assets often remains siloed, limiting composability and secondary-market efficiency.
