Forgd Profile picture
Dec 7, 2022 7 tweets 4 min read Read on X
As an investor in the #crypto space, there is one key decision metric for buying a #token: the utility.

What are the most common examples of utility?

What is #utility and how do we evaluate it? Image
Utility is what gives a token a use case. The most relevant use cases are:

-Governance: $UNI, $COMP, $MKR
-ROI: Pays yield: $SUSHI ($XSUSHI)
-Use as Collateral: $ETH, $DOT
-Access to service (SaaS): $LINK, $FIL
-Status: $BANK Image
The most relevant use case is governance; nearly all tokens provide governance rights.

Popular examples are $UNI, $COMP, and $MKR.

This is because they are the native tokens of their protocols, and users can participate in governance discussions and voting. Image
Passive income is another significant demand driver.

$SUSHI is a good example.
Owners of the token can lock their $SUSHI and receive $XSUSHI, which will appreciate in value due to fees from the exchange platform of Sushi. Image
DeFi is another essential option for token use cases.

There are a lot of opportunities to use $ETH to borrow, lend, add liquidity, etc.

For example, users can deposit their $ETH as collateral to @MakerDAO to borrow $DAI. Image
Accessing a service through tokens is also popular.

@chainlink is an oracle protocol that transmits real-world data on-chain. Oracles are a decentralized layer between real-world data and the blockchain.

To use Chainlink, users have to pay $LINK tokens to oracles. Image
Last but not least, there are status tokens such as @banklessDAO’s $BANK token.

You need to own it to become a contributor to the DAO. It is a mix of membership fee and status symbol.

The more $BANK you own, the more serious you are about Bankless DAO. Image

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More from @Forgd_

May 10, 2023
Tackling the #crypto trilemma, #PartisiaBlockchain aims to address scalability, privacy, and interoperability with a dual-layer approach.

Ambitious? Definitely.

Let's take a closer look at the project and its distinctive #tokenomics. @partisiampc

🧵 by @FlorentPorrot

1/15 Image
Offering a dual-layer solution, Partisia features consensus, governance & interoperable Zero-Knowledge & Oracle services.

The 2nd layer is essentially a platform for ZK computations - on-chain, off-chain, inter-chain, bolstering blockchain privacy in a decentralized way.

2/15
Decentralized nodes ensure security and integrity. As #web3 leans towards transparency, control over information is paramount.

By harnessing a global network of ZK computation nodes, Partisia enhances privacy and security, opening doors to secret voting, secure aid, etc.

3/15
Read 16 tweets
Apr 25, 2023
@SuiNetwork recently announced the deployment of its Community Access Program that grants early contributors access to dicounted $SUI.

The #Suinami is at our doorstep, will you know how to swim?

A 🧵 by @giorgionchain

1/31 Image
#Sui is a low-latency, high-throughput permissionless L1 whose instant transaction finality makes it a prime candidate for on-chain use cases like #DeFi and #GameFi.
It focuses on horizontal scaling enabling parallel unrelated transaction processing

sui.io

2/31
The Mysten Labs team, which comprises former Diem (@Meta) developers (@EvanWeb3, @EmanAbio, @b1ackd0g), secured backing from high-profile crypto VC funds (@a16zcrypto, @BinanceLabs, @cbventures, @circle), by raising millions in series A and B financing round

3/31
Read 32 tweets
Apr 11, 2023
Is @LiquityProtocol The holy grail of decentralized, resilient stablecoins in DeFi, and perhaps even the MakerDAO killer?

Following $USDC's depeg, $LUSD has been the biggest stablecoin winner in terms of market cap percentage gain.

Here's how it works🧵by @imajinl
Liquity is a decentralized stablecoin issuer that allows users to open collateralized debt positions (CDPs) by minting $LUSD stablecoins against their $ETH collateral, arguably one of the most pristine collaterals in crypto
Let's get into the details.

First, let me introduce you to troves, the core of the Liquity protocol.

The diagram below is a high-level overview of how troves work.

Think of troves as Liquity’s equivalent of MakerDAO’s vaults, but with a few nuances.
Read 42 tweets
Feb 23, 2023
🚨NEW PROTOCOL LISTED ON TOKENOMICS HUB

This time it's @Polkadot!
⚙Token Utility

$DOT is used for payment of the transaction fees. Users can stake their $DOT and secure the network while enjoying staking rewards. Moreover, holders can participate in governance and parachain slot auctions.
🙌Demand Drivers

There are multiple demand drivers, such as payment of transaction fees, on-chain governance, parachain slot auctions, and staking yields.
Read 8 tweets
Feb 22, 2023
Today is Tokenomics DAO's twitter birthday, let's celebrate some of our achievements! 🎉

We want to share with you this fantastic growth journey that has brought us to where we are now, reaching goals we didn't even dream of!
What do we do? 🤔

• We advise projects in the tokenomics field

• We create in-depth tokenomics analysis

• We provide tokenomics courses accessible to all

• We provide tokenomics design tools [WIP]

• We've built our own tokenomic centric platform [WIP]
Our growth 🚀
Read 7 tweets
Feb 17, 2023
@arielfleite666 (TDAO) and @indiv_0110 (@BNBCHAIN) partnered to develop a framework for analyzing product-token alignment.

We realized proper product design is required to improve token incentives.

However, that varies according to the product development phase. Image
For early-stage products, tokens should incentivize user and/or liquidity growth.

For late-stage products, tokens should enable community governance to decentralize product development.

This framework applies to different sectors, let's see how it works for P2E economies.
@GodsUnchained is an excellent example of a web3 game using tokens to drive user growth (acquisition + retention) in the early development phase.

$GODS launched in 2021 as a requirement to mint cards into NFTs, debuting their P2E economy.

Here is how $GODS drives user growth. Image
Read 10 tweets

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