Book Image

Tokenomics

By : Sean Au, Thomas Power(GBP)
Book Image

Tokenomics

By: Sean Au, Thomas Power(GBP)

Overview of this book

Tokenomics is the economy of this new world. This is a no-holds-barred, in-depth exploration of the way in which we can participate in the blockchain economy. The reader will learn the basics of bitcoin, blockchains, and tokenomics; what the very first ICO was; and how over a period of 5 years, various projects managed to raise the enormous sums of money they did. The book then provides insights from ICO experts and looks at what the future holds. By comparing the past, current, and future of this technology, the book will inform anyone, whatever motivates their interest. The crypto shift of blockchains, ICOs, and tokens is much more than just buying bitcoins, creating tokens, or raising millions in a minute in an ICO. It is a new paradigm shift from centralized to decentralized, from closed to open, and from opaqueness to transparency. ICOs and the creation of tokens during the craze of 2017 needed a lot of preparation, an understanding of cryptocurrencies and of emerging legal frameworks, but this has spurred a new movement to tokenize the world. The author gives an unbiased, authoritative picture of the current playing field, exploring the token opportunities and provides a unique insight into the developing world of this tokenized economy. This book will nourish hungry minds wanting to grow their knowledge in this fascinating area.
Table of Contents (18 chapters)
Tokenomics
Contributors
Preface
Index

Foundations


The term foundation in general is used to describe a distinct legal entity. The exact details depend on the jurisdiction in question, but here we take a general look at why foundations were popular with many ICOs.

In the early days, blockchain projects mostly created foundations to raise the capital needed to build the technology and make it open source and decentralized. The most famous is the Ethereum Foundation and more recently the Tezos Foundation, as mentioned earlier. This structure seemed to make sense because these international collaborators did not see themselves as a corporation. Also, a foundation seemed to have the right governance structure to keep the project alive through to completion and avoid any form of taxation, as foundations are not-for-profit entities and thus not taxable.

As a distinct legal entity, a foundation is generally established to reflect the wishes of the founder via an endowment of assets, which are managed by council members for a specific...