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

Counterparty (XCP)


Counterparty is a platform to manage cryptographic assets. It extends bitcoin's functionality by writing in the margins of regular bitcoin transactions.

Counterparty did not hold a crowdsale or ICO, but did issue XCP, about six months after Omni in January 2014, to the bitcoin address 1CounterpartyXXXXXXXXXXXXXXXUWLpVr.

2130 bitcoins were received and then subsequently burned and destroyed using a technique called proof-of-burn to avoid pre-mining. The terms of the swap were that one bitcoin burnt would garner between 1000 and 1500 XCP, as stated by Counterparty on bitcointalk:

"No more than 1 BTC may ever be burned by any address, and the number of XCP received per BTC is between 1000 and 1500, with more XCP being rewarded the earlier in the burn period the burn takes place." (https://bitcointalk.org/index.php?topic=395761.msg4271279#msg4271279).

In the end, the total supply created from the 2130 bitcoins was 2.65 million XCP tokens. These tokens were used to run Counterparty...