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

Critical considerations when creating a token


There are several reasons for wanting to create a token. Firstly, it is a fun exercise to demystify the technology and understand at a deeper level how tokens work. The second, more serious, reason is to participate in this token economy and provide added value to either existing or new products and services.

Whatever the reason, the first step is to understand the purpose and function of your token. The next step is to decide if an existing token can be used or if a custom token is required. The final step is then to ask if a blockchain or distributed ledger is required. Following on from the concepts of the thought experiments earlier, let's go through the steps of how a token would be created.

Step one – the purpose of the token

As highlighted earlier, tokens can fall into three main categories: payment, utility, or security. Is the token designed as a form of payment? If yes, will an existing cryptocurrency or payment token, such as bitcoin...