This video outlines a parallel between token economic models and business models. The central idea is that the way business models are designed is to provide value for customers while extracting value for shareholders. In a token model, the design is intended to create value in the token itself and therefore reward those supporting the business, including customers and shareholders.
However, part of the problem of a single-token model is the inherent tension between those who want the token to rise in value, like an investment, and those who simply want to pay for services, as with a currency that maintains a stable value.
Hence, the design of this two-token model is intended to satisfy the needs of two groups: customers and business supporters. This model is comprised of three key principles:
- Reward value creators
- Align actor incentives
- Support business sustainability and expansion
Often blockchains are thought of as a way to disintermediate middlemen. However, some of them add value. Hence, this system is designed to reward all those who are adding value to the business, whether they are creators or traditional middlemen.
This specific 2-token system is designed for music blockchain Emanate. The two tokens are designated as MN8 and MNX.
- MN8 is a governance token
- MNX is a stable, internal cryptocurrency
Customers don’t care about MN8. They will swap money for MNX and use MNX to pay for services, just like traditional currency.
Different actors aligned with supporting the business will extract value from the system by receiving MNX as part of their provided services, according to pertinent smart contracts. They can then swap MNX for whatever currency they desire through an internal exchange.
However, they will need to stake some MN8 to participate in the system and earn MNX. Hence, they are buying into part ownership. Alternatively, they could be investing in the business itself.
All of the MN8 stakeholders can vote on the direction of the business. Those who own the most MN8 will have the most votes and the greatest vested interest in the success of the business and MN8 token. As the business becomes more successful, the MN8 tokens would be anticipated to rise in value, in the same way the value of stocks rise in a traditional, publicly traded corporation.