Tokenomics - The Differentiator That Builds Token Value

In the past, governments issued currencies and set terms for their governance. That's how the economy of every nation works and the way currencies became an exchange medium of value.
Enter blockchain! With blockchain, new types of organisations are issuing their own digital currencies, with their own terms of operational conduct, thereby creating new mini-economies that are self-sustainable. These digital currencies, or 'tokens' are as important as the act of conducting ICOs. It is these crypto tokens that differentiate one blockchain project from another. These tokens, which can be transferred across the network and put up for trading on exchanges, serve a variety of purposes from providing access to specific services to giving users company dividends.

Utility Tokens vs. Security Token Concept

ICOs raised over $4 billion in 2017, and before the end of the first half of 2018, they managed to raise $5.5billion. At the heart of these ICOs lies the concept of their tokens. They thrive not only on the own value, but also on the mechanics and specifics of token distribution.
So it is essential to determine the whys and hows of implementing crypto tokens within a blockchain project's ecosystem, so people can exchange goods and services. It's not only important to build a token that incentivises its use by people, but create one that also serves various other objectives for it to be viable.
In July 2017, the US SEC investigation into the DAO token offering concluded with it being labeled as securities, to be subjected to federal securities laws. So it has become crucial for ICO owners to distinguish their tokens as utility vs security tokens.
Security tokens are much like financial trading instruments. They derive value from an external tradable asset. Utility tokens, however, are app coins or user tokens that grant access to a company's products or services.
It's astonishing to see the concept of utility tokens and its sheer usage options. If you remember, Filecoin raised $257 million in its 2017 ICO, by selling tokens that gave users access to its decentralised cloud storage platform.
Utility tokens are also making their mark in the field of online gaming. Sgame Pro™, a leading mobile games aggregator, is offering its SGM tokens to users for playing their favourite games on its platform.

The Sgame Pro™ Tokenomics

The SGM token is an ERC-20 standard token, which allows the platform full leverage to the Ethereum ecosystem, allowing easy integration into the existing ecosystem. Users can easily transfer these tokens into their external ETH-wallets.
Based on a 'Proof-of-Play' protocol, like the 'proof-of-work' one, gamers are rewarded with SGM tokens based on their time and efforts spent in playing games on the platform. These tokens have a wide variety of uses within the ecosystem. Players can buy digital and physical goods in the Publisher's stores or in the Sgame Pro Marketplace. It's a win win!
Founder and CEO Gip Cutrino says, "Challenges are one of the core features of Sgame Pro, enabling players to play in an Asynchronous Multiplayer mode, games that were traditionally single player. Players of similar skill levels will compete for a fixed amount of SGM tokens. Based on the amount wagered in the challenges, our publishers will also receive an SGM fee, which they can exchange to buy promotions for their games on Sgame Pro. We are aiming to build an ecosystem in which both players and publishers can thrive."
Sgame Pro™ plans to issue a security token right after the ICO has been completed. This will offer investors the chance to directly participate in the revenues of the company.

Curious? To learn more about their upcoming ICO, visit sgamepro.io and follow on Facebook, Twitter, Instagram and LinkedIn.