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

Token mechanics considerations


The following table can be used as a guideline for ideas when looking at different factors in structuring the mechanics of an ICO:

 

Options

Examples/comments

Supply

  • Pick your lucky number

  • Proportional to funds raised

  • Desired capital ÷ desired price

  • 1 billion

  • $34 million raised = 34 million tokens

  • $50 million ÷ $0.10 USD

Price

  • Fixed initial price

  • Proportional

  • $0.10 USD

Distribution

  • Majority to supporters and true investors

  • Incentivize core team, founders, developers, and network participants

  • Distribute remaining as required

  • >50% to public

  • ~15% to developers, core team, and founders

  • ~5% to advisors

Cap

  • Uncapped

  • Hard cap

  • Soft cap

  • Hidden cap

  • Avoid uncapped

  • Implement hard cap

  • Soft cap optional

  • Avoid hidden cap

Duration

  • Fixed time

  • Until cap is reached

  • Four weeks

  • Avoid lengthy ICOs

Presales/bonuses

  • Be creative but keep it simple

  • Sliding scale for early backers

  • Four weeks

  • Avoid block height bonuses

Pre-ICO and private sales

  • Recommended

  • Get the ball rolling/psychological...