NOTE: This is not a big problem! This is normal. We have economic cycles IRL. of course we have it in the metaverse land too.
Difference: we can better anticipate and change
Here are 7 ways Axie can manage inflation and recover 🧵
Economics is the most important aspect to get right in your economy. It builds the backbone of the entire market, but it is complicated to get right.
Feb 15 • 5 tweets • 2 min read
Purpose Of A Market
A market is a space for buyers and sellers to come together to trade and transact. The market is not owned by anyone and is just a space for people to come in and trade. Examples of some public markets are countries, farmer’s markets, listed companies, etc.
Examples of a private market are small little Facebook groups or it could be small online social media groups that you create with your friends.
At its core, Ocean empowers and works to give data publishers the power to take control of their data, share data the way they want to, and monetise it.
The main problem that Ocean tries to solve is that we do not feel comfortable sharing our data and also do not really know the true value of our data or how to accurately price it.
Nov 17, 2021 • 12 tweets • 3 min read
We upgraded from DeFi 1.0 to DeFi 2.0. What does that mean for the economics?
Here's Tokenomics 2.0 🧵
TLDR: economic balance.
DeFi 1.0 was to build the infrastructure and tools in finance. Think of it as the basic foundation in your skyscraper.
DeFi 2.0 is to use that existing foundation and built that skyscraper.
E.g. stablecoin for transaction.
Interest-bearing stablecoin for capital leverage.
Aug 26, 2021 • 5 tweets • 3 min read
@mirror_protocol allows users to create synthetic assets based on real assets, thereby making it easier for users to buy and sell ($mAssets).
Gyroscope is an all-weather stablecoin that is decentralized, scalable, and highly liquid based on revolutionary new designs. It's not out yet, still in testnet phase. But we'd like to share how the protocol works.
2. Economic incentives to be used in the present (through game theory and mechanism design)
3. Desired system properties in the future (through token design)
May 29, 2021 • 5 tweets • 2 min read
Supply and Demand 101
In #economics, we always talk about supply and demand. They are 2 lines. And usually when they intersect, that is what we call "market equilibrium". That point where the 2 lines meet is the market price and market quantity.
But what these lines share, is the relationship between both parties. When prices are low, buyers will demand more. When prices are high, buyers will demand less.
First of all, we need to understand that NFT is essential items that can be collected. Like a painting, rather than a typical token which has lots of incentives associated with it to increase buyer demand.
A long episode this week on What is @AmpleforthOrg and the Economics* Design of .
*because it's the analysis of the entire economics, not just the token design mechanism 👇🏼
The first episode of S2. Season 1 was all the fundamentals of token economics and economics design. Now is where the serious and fun things begin.