Tokenomy 101 (Mandatory Class)
Good morning, students!
How are you doing today? It is with great pleasure that I get to present and walk you through our new syllabus - Tokenomy 101. Some background: it's a friendly jab at the term "token economy". Just take a look at https://coinmarketcap.com and you'll understand what I'm talking about. People are actually "working" and living off these tokens. You'll see more than 600 different digital currencies on that website, including coins like DASH, ZCASH, and ZDASH. So it's really the words "token" plus "economy" - "tokenomy". Get it? Lol. Here, take a look at this:-
The image above shows the very basics of tokens like Bitcoin, Ethereum, and STEEM function. Each of them are universes of their own, and a snapshot of all information that defines the contents of the blockchain is called State (S). Its next State (S') is simply transition function (TX) applied on the current State (S). This repeats as we forge our way into the future, one block at a time. TX pretty much involves all activities that happen in State (S), effectively giving rise to the next State (S').
TX pretty much relates to this concept called mining in blockchain technology. For Bitcoin, the mining is some mathematical brute-forcing done by bots. On STEEM, the mining is whatever we do around here posting and voting.
So why care about the tokenomy?
The emergence of this phenomenon is really the beginning of freedom, starting with Bitcoin's genesis of literally freeing up energy for anyone's taking. While it's not a universally perfect token, its energy distribution remains to be a great boon for the growth of other tokens and their users.
“The future is already here – it's just not evenly distributed."
As tokenomy becomes more embedded in our daily lives, it pays to understand the many tokens out there and what they can do for you. We're all bound to be consumers, producers, and prosumers one way or another in the tokenomy so it pays to know what's up. Why is there a buttload of different tokens out there now? Quite simply, the tokenomy is a diversity of activities (TX) and expected end-games (S').
So as a user, know thy token's TXs and their S'es:-
Machinise: Work mechanically in massive groups to transition S into limited outcomes (S'). (Example: Bitcoin's Proof-of-Work)
Humanise: Work humanly in large groups to transition S into a diversity of outcomes (S'). (Example: Ether / STEEM's Proof-of-Stake)
Authorise: Manage energy distribution in small groups to transform S into desired outcomes (S'). (Example: VIVA Crown's Proof-of-Authority)
Embrace the tokenomy and empower yourselves!
I hope the above makes some sense. Keypoint: anyone's free to subscribe to any tokens in the tokenomy. There's no one token to token them all. So choose your tokens wisely and be prepared to put the leg work, hard work, heart work, and some heady work.
Tokenising our way towards great abundance.
It is my desire as Supreme Leader to focus on transforming our S into the best kind of S' in the future. Silly me, but I think a world without war and poverty may be something worthwhile. If I feel like punching someone in the face or launch a missile, maybe I'll just meme-war it out on Steemit instead and get a dollar or two. Indeed, that's what we've been doing for a while now, embracing the tokenomy! You should too.
With so many crypto currencies springing up you really need to find your persona in them. to me bitcoin it the base, ethereum is the speculation and Steem is the soul.
Great piece @kevinwong
Thanks @kyusho - glad you've found your trinity :) are there more?
SteemSoul perfect :)
Super cool write up! Thanks a bunch for both educating us and entertaining us at the same time. That's the sort of article that can touch and empower many for a loooong time. Thanks! Namaste :)
Haha.. glad it's even mildly entertaining. Writing is the only time i can practice being a little witty.. Thanks for dropping by - namaste :)
Tokenomy is the new "wor(l)d".
Very good post with integrative new ideas for technological-philosophical reflection.
Glad your vein to write is back and better. :)
Spending some time looking into some possible steem app recently, amongst other things.. like ICOs ICOs and ICOs! Lol. Thanks for dropping by @charlie777pt how's the cryptogame been doing for ya?
I only put 30 to 50 € in any ICO I like to learn only not for profit
Bought Wings, Chronos, Humaniq and others.
Some money in BTS. Ether, Dash, Zcash and Bitcoin and others.
Since I started I got 300% in short term profit but I'm just learning how to play
My investment of 100 € in BTS some months is paying a lot today.
So I've spent 1000 € in various blockchains total and I've 6.500 for my kid hehe.
I'm playing dummy and holding on anything I buy, proved to be the best strategy hehe.
But I know that in my kind of personality if I play with a lot of money I lose the "vision".
Not be mistaken for the toking economy which is currently heating up and taking the world by storm. Just adding this tidbit in so others aren't as confused as I was.
(jeopardy music)
What is POT?
Winner!
I suspect it's already taken the world by storm even way before tokenising became popular xD
"I was on Steemit token, all day." - First random thing that came to my mind.
Very informative post. It seems that freedom has arrived and it is up to us to learn and master how to distribute it.
Thanks @team101 I wish i could write something other than cryptos these days, but getting way too inspired. Lol..
“The future is already here – it's just not evenly distributed."
Professor Wong, that was some excellent edutainment! (resteemed)
That's from William Gibson..
I mean.. me.. that's my original quote.
@cassidyandfranks PRESENT (raises hand)
:D
Theres a token out there that rewards provable hand-raising..
(jeopardy music)
What is STEEM?
esteem
But since this platform blurs the line between IRL and the interwebz, the e part of esteem isn't required anymore, hence STEEM :D
Good stuff!
very insightful, and thought-provoking. great post! There are indeed lots of token coins out there trying to do different things to solve problems. As adoption of crypto-currencies occur in the mainstream, perhaps the rising tide will lift all boats in the short-to-medium term. But in the long term, I think some will have to win out and be clear leaders of their respective categories. Thanks!
I think part of the reason there has been so many tokens created is cap on the amount of Bitcoins that will ever be created. Inorder to keep the price of Bitcoin more stable, a substitute needed to be created. Each token can be manupulated by the amount of currency available to an agreeable price, therefore diverting some of the attention and inflation away from the Bitcoin. What is stopping the producers of these new coins from mass producing the coins, rendering them worthless? Part of the challenge for the new Cryptocurrencys will be keeping a consistent amount of tokens circulating, maybe allowing for minimum and maximum amounts of tokens to be released. This will help the customers feel like their investment has stability.