Token Design: A Simplified Analysis
As a measure of simplicity, I writing a Thread 🧵 to back up my article about token Design.
Read full article:
medium.com/@RubiksWeb3/to…
As a measure of simplicity, I writing a Thread 🧵 to back up my article about token Design.
Read full article:
medium.com/@RubiksWeb3/to…
1/ In Real life,the word "Token" is used in several cases. The most common one I can think of is "A token of Appreciation"
From the sentence, you can depict that Token as a word is backed by Incentives. Meaning you are expressing your intentions. It is used in every sector
From the sentence, you can depict that Token as a word is backed by Incentives. Meaning you are expressing your intentions. It is used in every sector
2/ In Traditional Economics, "Token" represents a systematic management of human behavior. Thus, regarded as a store of value. However, it is different from money because it can be assigned a price. As said in the article, it appreciates value.
3/ In Web 3, Crypto, DeFi, A token is an accural of economic value. This means that the value derived from the utility of a project is what defines the price of a token.
Note: In DeFi, A Coin is different from a Token. $BNB is the coin BSC. $Cake is a token built on BSC.
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Note: In DeFi, A Coin is different from a Token. $BNB is the coin BSC. $Cake is a token built on BSC.
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4/ The Economics Design Framework is divided into three; Namely:
• Market Design
• Mechanism Design
• Token Design
A token is categorized into Types and Functions. By types we refer to Fungible and Non Fungible Tokens
Function is abbreviated as SUMS. The article explains this!
• Market Design
• Mechanism Design
• Token Design
A token is categorized into Types and Functions. By types we refer to Fungible and Non Fungible Tokens
Function is abbreviated as SUMS. The article explains this!
5/ The Token Design is divided into:
•Token Policy
• Financial Incentives and
• Architecture
Policies are principles of action attributed to a token. Incentives are ways of getting rewarded by with tokens. Architecture is the structure behind a token.
•Token Policy
• Financial Incentives and
• Architecture
Policies are principles of action attributed to a token. Incentives are ways of getting rewarded by with tokens. Architecture is the structure behind a token.
6/ There are three important variables attributed to these three designs.
1. Consensus
2. Resolution
3. Allocation
The above defines the Token Design. A critical analysis of these variables are explained in the article.
1. Consensus
2. Resolution
3. Allocation
The above defines the Token Design. A critical analysis of these variables are explained in the article.
7/ Would love to discuss more. However, I can't explain the whole article. When you read it, you get enlightened about the significance of a token and it's design. There are several more topics attributed to it that are not explained yet. Theories of Token Economics is one.
When you read the article, and you are interested in learning about token, Tokenomics or Token Engineering, the book below and some other resources explains a lot about it. You can find it on Amazon for $150 not anywhere else.
If you need it, I can give it at $15. Link in my Bio
If you need it, I can give it at $15. Link in my Bio
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