Difference between revisions of "Tokenomics"
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| − | 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]]. | It uses [[game theory]]. | ||
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| + | With the advent of [[cryptocurrency]], individuals can now create micro-economies. Tokenomics essentially takes what central banks use as monetary policy and apply it in [[blockchain]] networks. | ||
=History= | =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. | + | 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= | =Applications= | ||
Revision as of 21:37, 6 April 2022
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.
With the advent of cryptocurrency, individuals can now create micro-economies. Tokenomics essentially takes what central banks use as monetary policy and apply it in blockchain networks.
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. the use of tokens that represent something valuable (see value) to incentivize positive actions and vice versa.
Applications
Tokenomics is used in DAOs, or decentralized autonomous organizations.
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.