As digital asset markets face renewed pressure, a senior voice from the Solana Foundation has called for a reset in the way blockchains define their purpose. Lily Liu, a key figure at the foundation, argued that the industry was drifting too far from its financial roots. That’s why she urged builders and investors to narrow their focus to financial infrastructure rather than experimental consumer stories.
Liu’s comments come at a time of falling token prices and declining risk appetite. In addition to market volatility, the sector also faces growing skepticism about value creation in the real world. She designed blockchains from the ground up as tools designed for finance. Therefore, she emphasized that safe liquidity and capital movements must remain the main design priority.
According to Liu, many past initiatives have misunderstood what blockchains are best at. Game projects and broad consumer experiments have absorbed large amounts of capital. However, they rarely produced sustainable demand. She suggested these efforts were distracting teams
solving more difficult financial problems that actually require decentralized systems.
Rethinking Web3 stories and incentives
Liu was also critical earlier tries to explain the value of blockchain through simplified slogans. The idea that users could simply own everything online failed to capture the economic complexity. Moreover, it encouraged superficial product design. Many teams focused on telling stories instead of building functional markets.
She noted that venture financing often followed stories rather than utility. Consequently, projects launched tokens to attract speculative liquidity rather than long-term users.
This cycle pushed prices higher without strengthening the underlying systems. Over time, the industry built up redundant infrastructure for which there was no apparent demand.
Furthermore, Liu argued that the promise of universal rewards misled participants. The belief that every online action should generate revenue distorted incentives. Instead of creating useful services, teams optimized for token valuation. Significantly, this approach weakened confidence once market conditions reversed.
Open Finance as a core opportunity
Despite criticism, Liu expressed confidence in the long-term potential of blockchain. She described openly financial rails as the defining performance of the sector. These systems allow capital to move globally without traditional barriers. As a result, entrepreneurs can form markets in regions that have long been excluded from financial networks.
Moreover, open finance enables new forms of capital formation. Individuals can participate directly in economic growth without centralized gatekeepers.
Liu associated this shift with greater personal agency and economic freedom. That’s why she framed financial infrastructure as a foundation for broader innovation.
According to her, the next phase requires discipline. Builders should prioritize systems that support liquidity, settlement and risk management.
Furthermore, stories should follow functionality and not replace it. As markets mature, Liu suggested that blockchains will prove their worth not through hype, but through sustainable financial utility.