Token Economy

Perhaps most interestingly, there are some potential new opportunities by which protocols might actually be much more sustainable. In the last few years, with the development of cryptocurrencies and tokens, it has become theoretically possible to build a protocol that uses a cryptocurrency or a token that has some value attached to it, with the val... See more

Centralized trust creates negative externalities even when those at the center remain trustworthy. As the market expands, a purely person-to-person approach breaks down and would necessitate the presence of intermediaries. Intermediation, on the other hand, serves many roles, but also imposes costs, especially when the intermediary is a private com... See more