Thread by @divine_economy

yes yes, tokens are the atoms of crypto—the building blocks of a new economic, political, and social order.

the thing is, we haven't really built with them; we haven't turned those atoms into molecules.

the real unlock for tokens will be how we combine them (thread)

this is the second of three threads on unleashing the opportunities for tokens.

part 1 (below): 7 types of non-financial tokens
part 2 (today): 7 ways we need to combine tokens and VCs
part 3: opportunities of token governance

https://twitter.com/divine_economy/status/1542185375547813888

quick glossary:

NFTs: non-fungible tokens (can't be fractionalized on their own)

non-transferable NFTs: these get a bad rep, but if *you* mint it yourself, can be meaningful

fungibles: fungible tokens, ie ERC-20s

VCs: verifiable credentials, off-chain credentials (not tokens)

combo 1: access passes (NFTs & VCs)

you buy an NFT to join a community, but your verifiable credential—showing your history of contributions, reputation, and credibility—determines whether you're accepted.

or whether you need to do more tasks, what level you join, etc.

combo 2: in-game currencies (NFTs & fungibles)

you play a game, collect coins (fungibles), and exchange them for in-game items (NFTs).

every RPG ever's worked this way, and blockchain games won't be different.

but defi opportunities await: ie lend your NFT and get more tokens.

combo 3: voting power (fungibles & VCs)

voting power will be determined both by your holdings (number of tokens) and reputational legitimacy (VC).

the more you've contributed to a DAO, the more voting power your token has.

see @Jad_AE @skominers' piece: future.com/reputation-bas…

@Jad_AE @skominers combo 4: public reputation (non-transferable NFTs & VCs)

mint a non-transferable NFT that can attest to private details of your verifiable credential—ie your credit score, your trading record, etc.

your reputation details stay private (VC) while you confirm them publicly (NFT)

@Jad_AE @skominers combo 5: earning power (fungibles & VCs)

you use a defi protocol to loan money to your community and earn tokens as the loans are serviced.

you also earn a trustworthy reputation (verifiable credential) that lets you earn more tokens in turn as well.

look to jia and goldfinch.

@Jad_AE @skominers combo 6: NFT voting (NFTs & fungible)

one-time voting tokens can be sent to NFT holders to vote with @jokedao_ rn, but bigger opportunities await.

fungible tokens, unlike NFTs, can be sold in fractions to enable greater voting participation—and raise funds for an NFT project.

@Jad_AE @skominers @jokedao_ combo 7: badges + proof-of-stake (non-transferable NFT & fungibles)

earn non-transferable NFTs as you complete public work, then stake these to validate projects as you earn rewards.

if your validations are disputed, your rewards can be slashed and (perhaps) your NFT burned.

@Jad_AE @skominers @jokedao_ these are just a few rough sketches of some ways to combine tokens and VCs to unlock each other's potential—feedback, as always, is welcome.

with gratitude to those thinking through these issues: @dazuck @provenauthority @davidlsneider @owocki @dabit3 @reka_eth @gaby_goldberg