New Models for Utility Tokens

1. UtilityThe utility is probably the most important factor in a crypto project’s tokenomics.Even if a token is deflationary, has the best price stability mechanisms, distribution, as well as a decentralized and highly efficient on-chain governance process, it won’t be worth too much if it is not used for anything.

Most companies in the public market are valued on revenue or EBITDA; if revenue increases, so does the value of the stock...  As for tokens, it’s an open question. The valuation methodologies haven’t coalesced yet. Cryptoassets written by Burniske and Tatar in 2017 contemplates a few different models including velocity of money (mv=pq), discou... See more

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.