Cryptoeconomics is about incentives and balanced cooperation-competition ecosystem. Arguably, cryptoeconomics is the most important and key invention in the whole area if compared to blockchain, ICO, decentralization, etc., and other hype words.
Crypto Tokens: A Breakthrough in Open Network Design by Chris Dixon
The Coase Theorem in action by Nick Szabo. Sophisticated thinking by Szabo that the real life is not efficient. Just another example of his negatively critical thinking I guess, not sure about the application in the blockchain context. His thinking is broad usually anyway.
Tokens and the design of the network
Token is just one element of the cryptoeconomic design, yet it is one of the most important ones.
The Token Classification Framework
While tokens are an integral component of the system — as they are critical to establishing a cryptoeconomic dynamic — the token layer is only one of three system layers. The others are the governance and technology layer, which are connected by the token.
Token value and network value are different things. There are internal cryptoeconomics and external economics, where the latter, or external and internal economy models together, can be thought as a business model of the network. The innovation is ongoing for new token models
- “currencies” such as Bitcoin
- The Discount Token model
- we have “revenue share” models, such as KCS,
- we have “work tokens” where staking tokens is required to perform a service,
- even non fungible tokens (or deeds) such as crypto-kitties.
- Charter Currencies: Designing A Future of Competitive Monetary Policy