Thoughts on Tokens

Tokens are programmable “side currencies” that also act as a proxy for equity, but they can have a number of other uses as well, which I cover further down. Tokens will generally track the market cap of the issuing project / business, which is why you can see huge runs in value appreciation as network effects occur and something gains traction.

Ethereum enabled the creation of tokens - software based units of value that grants users ownership rights and even revenue streams.

The core tenet of any web3 project is a token. Operating as the centerpiece of the ecosystem, tokens are the new form of equity. Tokens typically carry governance rights, and allow community members to participate in a product, service or protocol as a co-owner and key decision maker of a shared treasury.S ince 2013, founders have had to think abou

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Asset tokenization is a big deal, as are protocol tokens. Of course, there are a many problems we have to figure out before we can get there (both technical and regulatory), so we’re likely several years away before these fully bear fruit. But if enough builders align to push them forward, these two forms of tokenization will lead to massive value ... See more

Early versions of token distributions have led to unsustainable dynamics wherein speculators are rewarded instead of those who are adding consistent value to networks through actual usage.

Imagine you have a dollar to invest and you can choose between two options: a public cloud service or a layer 1 blockchain. How do you decide which is more attractive? How does a token differ from equity?  The answer is that tokens can act remarkably like equity if they are structured in the right way. In addition, tokens offer one benefit bey... See more