Austin Castellaw

Chase Chapman:

I get paid in a lot of different ways which is the fun part of this. So, there are a few different ways. One of them is in tokens that are effectively like governance tokens from a DAO. So, for Index for example, I’m paid in Index tokens. I personally hold those tokens. Some people who are paid in those tokens sell them right away, it depends on if... 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

As players earn and extract money out of the gaming economy it puts significant downward pressure on prices, as most people are just cashing out their winnings and not reinvesting back into the game.

Defensibility in web2 comes from proprietary data network effects. Each application is a walled garden, and a bigger user base translates into more utility vs. competitors.  The social network with most data, content, users, etc. is more valuable.

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.

To provide a form of compensation that enables contributors to liquefy some of the value they have created into an exchangeable currency.