Decentralized finance is moving away from traditional token incentives towards fee-based rewards. This shift emphasizes sustainability and stability, allowing liquidity providers to earn consistently from fees, marking a new era in DeFi’s growth.

Historically, token incentives drove DeFi’s early success; however, these led to unsustainable practices. Now, with fees overtaking incentives, DeFi is set for more stable, long-term growth, minimizing volatility.

As DeFi matures, platforms are enhancing user experience through improved fee structures. Institutional interest is rising amidst regulatory scrutiny, indicating a promising future for fee-based models in the DeFi landscape.