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Godara 💡 @abh1manyu
, 15 tweets, 7 min read Read on Twitter
Unpopular opinion 🤔

Crypto twitter is wrong about security tokens.

Security tokens are not about disrupting traditional asset classes. Liquidity premium, global markets, fractional ownership...are not the killer benefits of tokenization.

Time for a thread 👇
Token revolution will not disrupt traditional asset classes (e.g. company stocks, real estate etc.) as many pundits have been pitching.

Some healthy background discussion here:

It's like thinking "with invention of wheel, horses 🐎 can run faster."

Wheels led to completely new modes of transport e.g. cars 🚕 and motorbikes 🏍.

Similarly tokenization will create new 🌴 kind of securities/markets that didn't exist before.
So how do we understand potential of tokenization?

A better analytical lens 🧐 would be to think of tokenization as an enabler for value modularization.

(Read this amazing piece from @stratechery on modularization:
stratechery.com/2015/netflix-a…)
Imagine being able to seamlessly create better equity-like representations for granular goods/assets such as tweets, videos, software, tickets or an item in your local restaurant...these markets weren't possible with traditional (read: cumbersome & inefficient) securities model.
In addition to this, tokenization complements 🤝 a bigger trend we're witnessing i.e. future ways of working, where companies as we know them will be replaced by movie production houses like temp arrangements.

Domain experts coming together, doing their bits and moving on.
In this world, rather than owning company stocks 📃 people will own tokens 🎫 of products/goods they create or consume.

e.g. instead of Apple shares you will own tokens of iPhone X or AirPods. When you buy AirPod certain % 💸 comes back to you in the form of newly minted tokens
These tokens can simply represent cashback, profit claims, predictions, vouchers, gift cards or something totally different!

Here's couple of interesting threads along similar lines:



Role of consumers, investors, curators, creators...pretty much overlaps in this new paradigm - everyone's a stakeholder aligned to the success of underlying good/asset.

Something I'm trying to achieve through smartX's universal token protocol.

This paradigm unlocks endless possibilities and we will see birth of new markets that couldn't be imagined before.

So let's apply our creativity and critical thinking to truly understand the potential of tokenization.
Didn't expect my "unpopular opinion" to blow up like this. 😳

Been getting fantastic response from crypto twitter and just wanted to address few common lines of enquiry in the same thread. 👇
To be absolutely clear tokenization is simply a socio-economic layer on top of existing goods. Traditional security/equity is just one form of token.

Tokenization opens up the design space (across pure goods-pure assets spectrum) coz of seamless digitization of various elements.
In traditional context there's either a fixed price good or a moving price company stock. Tokens can make creation of contracts/markets modular and therefore unlock more opportunities.

Stay tuned for smartX (@smartXbot) that's making tokenization UX super seamless/uber-like. ;)
Goal is not to eliminate 3rd parties/legal frameworks but to make the process easier.

If anything tokenization should create more opportunities for domain experts - as new multi-stakeholder asset classes, tokenized goods would require new (ricardian style?) contracts/templates.
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