Tokenomics

This is what great token design looks like 🧵

Some reasons to build your startup in web3 🧵

Harsh Truth: As long as protocols are issuing more in incentives than they're making in revenue (aka turn profit), token price will go down (over a long enough time horizon).

Web3 applications lack some traditional sources of defensibility, but have a new powerful one: tokens. Let’s explore “token network effects” ⬇️

WTF is Tokenomics?? Lots of people reach out to me to ask me about tokenomics, what it is, and how to get started in it. So I thought to put this out publicly so it’s easy for people to reference. Here are my foundational takes on the topic. https://t.co/1x6Vvz0fJD

24/ We are all at the experimentation stage. We are early. I believe we all will figure it out together. Note: - This is just a simplified version of token analysis. Deeper analysis of each project can be found at @TheBlockRes https://theblockresearch.com/author/erina-azmi... See more

You're going to get wrecked if you don't understand Tokenomics. But what IS Tokenomics and what should you watch out for? Here's everything you need to know about Tokenomics: (+ a free Tokenomics checklist)

Staking is a common element in crypto token designs. But staking in the classic sense originated with securing Proof-of-Stake blockchains, not embedding token features in apps that run on top of them. So what’s changed, and what new design opportunities could this open?

Often, token models incorporate a single-use token design, i.e. a governance token conveys voting rights. Could this change? Future token designs may instead choose to incorporate a blend of economic, governance, and utility rights, opening a new design space. Here’s how.

0/ Token incentives are a popular way to distribute ownership to people that provide a useful service But as we've seen, some of these distributions are easy to game and are less effective in hitting their key objectives Here's my framework for thinking about this 👇