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 5. The Need for a Token

Blockchain and smart contract technologies have unleashed the ability to create all sorts of tokens, as highlighted in the previous chapter, including an increasing number of applications and tools to help to make the token creation process easier.

However, the most important question before we all rush out and start tokenizing the world is: what is the purpose of the token? Is it to access an application's service or product? Is it to incentivize users to grow an application or platform network? Is it, perhaps, to make an illiquid asset liquid? Is it purely to raise capital? Quite often, the answer is that a token starts out having one purpose and then changes to having a purpose that is a combination of all of the preceding points.

In this chapter, we will look at the following topics:

  • Did these ICOs really need a token?

  • Types of companies running ICOs

  • Critical considerations when creating a token

There is no shortage of opinions on whether any new project in...