Tokenomics - Revision history

TiberiusB at 16:17, 15 September 2022

2022-09-15T16:17:46Z

TiberiusB at 15:46, 29 July 2022

2022-07-29T15:46:04Z

TiberiusB: /* Patterns in tokenomics */

2022-04-22T20:22:46Z

Patterns in tokenomics

TiberiusB at 14:40, 7 April 2022

2022-04-07T14:40:08Z

TiberiusB: /* No everything can be quantified or tokenized */

2022-04-07T13:39:14Z

No everything can be quantified or tokenized

TiberiusB at 21:37, 6 April 2022

2022-04-06T21:37:54Z

TiberiusB at 21:27, 6 April 2022

2022-04-06T21:27:26Z

TiberiusB: Created page with "It is a token-centric method to control an ecosystem, a group of agents to produce a specific set of behavior that increases the probability of a specific outcome. Tokens rep..."

2022-04-06T21:26:10Z

Created page with "It is a token-centric method to control an ecosystem, a group of agents to produce a specific set of behavior that increases the probability of a specific outcome. Tokens rep..."

New page

It is a token-centric method to control an ecosystem, a group of agents to produce a specific set of behavior that increases the probability of a specific outcome.
Tokens represent access and rights and are implemented on a blockchain, using a smart contract. The idea is to have a pre-set logic that ties rewards to actions.
It uses [[game theory]].

=History=
The idea of the token economy was propounded first by the Harvard psychologist B.F. Skinner in 1972. He believed a token economic model could control behavior. Giving some unit of recognizable value would incentivize positive actions and vice versa.

=Problems=
==No everything can be quantified or tokenized==
develop...

==Gaming the game==
Once activities and outcomes can be measured, evaluated and tracked, i.e. once we adopt a formal quantitative system to guide activity, at the same time we create the possibility for gaming, i.e. for cheating.

==Crowding out==
Once we associate a clear benefit to an action the action may become less appealing for potential participants.

@@ Line 1: / Line 1: @@
-It is a [[token]]-centric method to control an ecosystem, a group of agents, to produce a specific set of behavior that increases the probability of a specific outcome.
+It is a [[token]]-centric [[method]] to control an ecosystem, a group of agents, to produce a specific set of behavior that increases the probability of a specific outcome.
 [[Tokens]] represent access and rights and are implemented on a blockchain, using a smart contract. The idea is to have a pre-set logic that ties rewards to actions.
 It uses [[game theory]].

@@ Line 1: / Line 1: @@
-It is a [[token]]-centric method to control an ecosystem, a group of agents to produce a specific set of behavior that increases the probability of a specific outcome.
+It is a [[token]]-centric method to control an ecosystem, a group of agents, to produce a specific set of behavior that increases the probability of a specific outcome.
 [[Tokens]] represent access and rights and are implemented on a blockchain, using a smart contract. The idea is to have a pre-set logic that ties rewards to actions.
 It uses [[game theory]].

@@ Line 14: / Line 14: @@
 =Patterns in tokenomics=
-Concerned with supply (minting and burning), distribution (among holders, staking, etc.) and incentive structure (encourage usage or participation).
+Concerned with supply (minting and burning), distribution (among holders, [[staking]], etc.) and incentive structure (encourage usage or participation).
 * DEFI - users are rewarded with tokens for activity (borrowing/lending), or tokens are created as synthetic versions of other existing cryptocurrencies
@@ Line 40: / Line 40: @@
 ==Incentives==
 continue...
 =Problems=

← Older revision		Revision as of 14:40, 7 April 2022
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	Tokenomics is used in [[DAOs]], or decentralized autonomous organizations.		Tokenomics is used in [[DAOs]], or decentralized autonomous organizations.
		+
		+	=Patterns in tokenomics=
		+
		+	Concerned with supply (minting and burning), distribution (among holders, staking, etc.) and incentive structure (encourage usage or participation).
		+
		+	* DEFI - users are rewarded with tokens for activity (borrowing/lending), or tokens are created as synthetic versions of other existing cryptocurrencies
		+	* DAOs - token holders get voting rights within Decentralised Autonomous Organisations, new digital communities governed by Smart Contracts
		+	* Gaming/Metaverse - where game activity and in-game items are represented by tokens and can have exchangeable value
		+
		+	==Supply==
		+	Important concepts: schedule, metrics
		+
		+	'''About metrics'''
		+	* Maximum Supply - A hard cap on the total number of tokens that will ever exist. In the case of Bitcoin 21 million.
		+	** Disinflationary - Coins with a maximum supply are described as disinflationary or deflationary, because the marginal supply increase decreases over time.
		+	** Inflationary - Coins without a maximum supply are described as inflationary because the supply will constantly grow - inflate - over time, which may decrease the purchasing power of existing coins.
		+	* Total Supply - The total number of coins in existence right now.
		+	* Circulating Supply - The best guess of the total number of coins circulating in the public’s hands right now. Some tokens can be blocked for a given periode, see staking.
		+	* Market Capitalisation - The Circulating Supply multiplied by current price; this is the main metric (proxi) for estimating relative importance of a cryptocurrency, just as it is for public companies which multiply share price by number of tradable shares.
		+	* Fully Diluted Market Capitalisation - The maximum supply multiplied by current price; this projects an overall Market Capitalization of the fully supplied token, but based on current price.
		+
		+
		+	continue...
		+
		+	==Distribution==
		+	continue...
		+
		+	==Incentives==
		+	continue...
		+

	=Problems=		=Problems=

@@ Line 13: / Line 13: @@
 =Problems=
-==No everything can be quantified or tokenized==
+==Not everything can be quantified or tokenized==
 develop...

@@ Line 1: / Line 1: @@
-It is a token-centric method to control an ecosystem, a group of agents to produce a specific set of behavior that increases the probability of a specific outcome.
+It is a [[token]]-centric method to control an ecosystem, a group of agents to produce a specific set of behavior that increases the probability of a specific outcome.
-Tokens represent access and rights and are implemented on a blockchain, using a smart contract. The idea is to have a pre-set logic that ties rewards to actions.
+[[Tokens]] represent access and rights and are implemented on a blockchain, using a smart contract. The idea is to have a pre-set logic that ties rewards to actions.
 It uses [[game theory]].
 =History=
-The idea of the token economy was propounded first by the Harvard psychologist B.F. Skinner in 1972. He believed a token economic model could control behavior. Giving some unit of recognizable value would incentivize positive actions and vice versa.
+The idea of the ''token economy'' was propounded first by the Harvard psychologist B.F. Skinner in 1972. He believed a ''token economic model'' could control behavior. the use of [[tokens]] that represent something valuable (see [[value]]) to incentivize positive actions and vice versa.
 =Applications=