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

Reverse Dutch auction – Gnosis


Gnosis did a very smart token sale. It did its homework and in December 2016, Chief Strategist Matt Liston released a blog titled Introducing the Gnosis Token Launch. This is where the concept of the Dutch auction was introduced. Keep in mind that this was five months before the actual ICO.

A Dutch auction is where a good (or service) is set at an artificially high price where demand is known or believed to be zero. At publicly known time intervals, the price ticks down in publicly known price values. The price continues to tick down until the first bid is received. At this point, the auction ends immediately and the bidder wins the goods at that price point. The advantage is that the buyer recognizes their fullest economic benefit from the sale because that is what they were willing to pay in the first place. It is also quick and simple to implement and understand and only one bid is required. There are not a million hands waving all over the place, for instance...