Austin Castellaw

In this third part, I’m going to cover utility. Utility is a subsection of the Demand side of the tokenomics equation. Even if a token has a great supply model, it still needs a good reason to exist and for people to hold it. Without those, there will be no demand for it, and no one will buy or hold it.

And if nearly the entire audience who is playing the game is only there to make money, as soon as the earning possibilities go away so too does the audience, and then the game rapidly falls apart.

But this new model of compensation isn’t without questions & challenges.  One criticism is that this model of peer-driven compensation incentivizes more visible, externally-facing work—which may not be correlated with impact—versus more unseen independent contributions.

-Power naturally falls into a small group of people so you have to be intentional about giving away power as there are common roles that people can fall into. 

This is a fundamental shift in blockchain scaling.Running a game completely on-chain on a monolithic blockchain is economically unfeasible and will remain so for the foreseeable future. That is why most of the blockchain games that have been released in the past few years are in a hybrid form, having only a few components of their stack on-chain... See more

There are a variety of different strategies that can be employed to achieve a long term, stable value for a token. ‘Locking tokens’ is one of these strategies and is commonly seen as an effective way to keep a token’s value high in the long run. Token lockup refers to a specific period of time during which the tokens cannot be transacted or traded.... See more