Token Economy: Money, NFTs & DeFi

Embedded rights: Tokens can represent the “property rights”3 to an asset, that can be both digital or physical. Tokens can be designed to represent temporal or permanent “access and usage rights” to assets, services, events, spaces, etc. Tokens can also represent various governance rights such as “voting rights” or “management rights.” The term “as

Identity tokens, certificates, & reputation:

Money as debt:

In Web3, asset-backed tokens could be seen as a type of representative money, since they represent a physical object or digital property right.

The monetary policy mechanisms of a currency depend on the type of money used:

The history of Web2 has shown that, eventually, all these political, moral or ethical questions will need to be resolved anyhow.

Infrastructure tokens are purpose-driven and have a very clear role in a public blockchain network or another layer of a blockchain protocol stack, namely to incentivize the collectively maintained network and to keep it safe from attacks. Infrastructure tokens are the internal currency of the protocol’s ecosystem.

Asset transfer tokens:

Level of decentralization & power structures: