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

Chapter 7. The Token Sales Mechanics

Creating tokens in an ICO, as covered in Chapter 4, Token Varieties, was one thing, but figuring out how many to create, how much to sell, the early round bonuses, the inflation rate and everything else relating to the mechanics of the tokens was (and still is) a challenging task. All of the above had to be communicated to supporters and investors, while trying to keep things simple.

Although there was no right or wrong way to create tokens and market them, a lot of parallels can be drawn from the issuance of regular shares in a company, served with a side of economic incentives, a sprinkling of game theory, and a dust of creative marketing.

In this chapter, we will look at:

  • Token supply and distribution

  • Presale strategy and bonuses

  • Hard cap, soft cap, and no cap

  • A reverse Dutch auction

  • A token mechanic blueprint

If a lawyer was important when contemplating an ICO, a CEO or Chief Economic Officer was becoming crucial when looking at structuring the inner workings...