Austin Castellaw

So, what types of tokens should be used for which community purposes? As with most things in life, the answer is: it’s complicated! Each DAO needs to evaluate what type of community they are trying to build and determine the right combination of assets for economics, governance, and membership. But, generally speaking, we think it makes more sense... See more

Should all three of these roles be represented by a single token? Which of them are a better match for fungible and non-fungible tokens?

Algorithmic — The value and supply of algorithmic stablecoins are controlled by code. If the demand for the coin starts to increase rapidly, the protocol automatically creates more coins to bring the price down. If the value drops too low, some of the supply is burned to bring the price back up.

- compensation is about incentivizing people and what we want the DAO to actually accomplish and then find the straightest line between the money and the motivation.

So, in summary, single, dual, or triple token models are irrelevant if the game's sink and sources are not thoroughly considered + target demographic + game objectives.  Personally, I favor a dual or triple token model that separates investor and player incentives.

If the token distribution is easy to game, value extractors will find a way maximize the number of tokens they earnTokens spent on these entities have a negative benefit, as the project doesn't receive real users or growth in return