Tokenomics not Ponzi-nomics: Influencing Behavior, Making Money
Economics is the study of human behavior involving scarce resources and the effects of those behaviors on those resources, says Roderick McKinley.
Tokenomics in cryptography is a related but different field. Tokens are a way for projects to raise funds and build communities, and the design of how they work can be far more complex than traditional capital raises, and potentially far more problematic.
"In tokenomics, the token or digital asset is the scarce resource. But now we can design features for these programmable digital assets, influencing the way people behave and interact with each other, creating often new exchange opportunities,” McKinley says, explaining that token distribution and the results of that distribution are key questions for investors and for how the business ends up operating.
Roderick McKinley McKinley has worked on a range of different projects including ParallelChain, GBC AI, Avarta, Fluid, ShopX, Terona and Kasta. But what does a tokenomics expert bring to projects?
"I typically provide a range of services to projects. These include designing the supply of the token as well as other economic features that make the token useful, so that it attracts demand, helping clients understand how to use technology in a way that fits their business and ultimately how to make a compelling fundraising case,” he says.
There are two parts to every token's value equation: supply and demand. Yet an internet search for "tokenomics" will likely lead you to colorful fan charts that only deal with the supply side of this equation: describing how a project plans to release its supply of tokens to stakeholders, over time. Understanding how tokenomics is applied on the demand side is more difficult, as each case is different and potentially unique.
The dark art of tokenomics underpins the entire crypto economy.
Economics is the study of human behavior involving scarce resources and the effects of those behaviors on those resources, says Roderick McKinley.
Tokenomics in cryptography is a related but different field. Tokens are a way for projects to raise funds and build communities, and the design of how they work can be far more complex than traditional capital raises, and potentially far more problematic.
"In tokenomics, the token or digital asset is the scarce resource. But now we can design features for these programmable digital assets, influencing the way people behave and interact with each other, creating often new exchange opportunities,” McKinley says, explaining that token distribution and the results of that distribution are key questions for investors and for how the business ends up operating.
Roderick McKinley McKinley has worked on a range of different projects including ParallelChain, GBC AI, Avarta, Fluid, ShopX, Terona and Kasta. But what does a tokenomics expert bring to projects?
"I typically provide a range of services to projects. These include designing the supply of the token as well as other economic features that make the token useful, so that it attracts demand, helping clients understand how to use technology in a way that fits their business and ultimately how to make a compelling fundraising case,” he says.
There are two parts to every token's value equation: supply and demand. Yet an internet search for "tokenomics" will likely lead you to colorful fan charts that only deal with the supply side of this equation: describing how a project plans to release its supply of tokens to stakeholders, over time. Understanding how tokenomics is applied on the demand side is more difficult, as each case is different and potentially unique.
The dark art of tokenomics underpins the entire crypto economy.What's Your Reaction?
