Investors at the New York Stock Exchange trade upwards of a billion shares in a single day, but many of those trades take days to settle. Big banks like JPMorgan and Citi think they have a solution, and they need to borrow a tool from crypto to make it happen—blockchain. Citi thinks tokenizing assets on the blockchain could be a $5 trillion dollar industry by 2030. But tight regulation of markets, and a crackdown on crypto from the SEC could slow adoption.
Tokenomics Explained: How to build sustainable tokens? [Token Design Framework]
In this walkthrough tutorial, we explain how to design tokenomics from first principles and introduce a template for designing tokens.
Tokenomics, short for token economics, describe the underlying logic of cryptocurrencies and tokens, encompassing the incentives and disincentives for different stakeholders within a crypto system. The goal of tokenomics is to boost the value of the product, using mechanisms like liquidity mining, staking, locking, burning, and others to manage value flows between multiple actors.
The Importance of Token Design in Web 3
Welcome to this video on the importance of Token Design in Web 3. In this video, we will explore why token design is critical in the world of Web 3, and how it can impact the success or failure of decentralized applications.
Web 3, also known as the decentralized web, is the next evolution of the internet, where users can own and control their data and interact with each other without intermediaries. Central to the Web 3 ecosystem are tokens, which are digital assets that represent value and enable transactions to occur on the blockchain.
However, not all tokens are created equal, and the design of a token can have a significant impact on its adoption and success. In this video, we will explore the different aspects of token design, including token economics, governance, security, and user experience.
We will also discuss some of the common mistakes that developers make when designing tokens, such as creating tokens with no utility or failing to align the incentives of all stakeholders. Additionally, we will provide examples of successful token designs and explain what makes them effective.
Whether you are a blockchain enthusiast, a developer, or an investor, this video will provide you with valuable insights into the world of token design and help you understand how to create tokens that are well-suited for the Web 3 ecosystem. So, sit back, relax, and enjoy the video!
Larry Fink on Tokenization is the Future of the Next Generation
“I believe the next generation for markets, the next generation for securities, will be tokenization of securities,” BlackRock CEO Larry Fink said during the New York Times DealBook event.
We at Fusang have been busy exploring regulated solutions and structures which will allow us to unveil our own unique turnkey tokenisation solution for non-digitally native assets. Along with a custody and settlement system, the aim is to allow for fuss free tokenisation, providing issuers and investors a regulated fuss free marketplace for tokenised assets.
What Is Tokenization (And Why You Need It)
What Is Tokenization? With regard to data security, tokenization refers to the process of securing sensitive data by substituting valuable elements with non valuable equivalents known as tokens. Tokens serve merely as a reference to the original item or currency and provide value only within an authorized, isolated ecosystem that validates its purpose.
The constant threat of cyber attacks and fraud has made both personal and financial data extremely susceptible to exploitation. Thankfully, tokenization converts sensitive data to digital tokens that have little or no value outside a specific digital ecosystem.
Once all elements have been tokenized, there’s no distinguishable relationship between the original information and its tokenized results which provides excellent security to data that’s stored or “at rest.”
Integrating tokenization into credit card processing provides substantial protection to consumers and businesses alike, by yielding only unusable tokens to hackers. This forces fraudsters to go elsewhere to seek valuable digital assets like credit card numbers and social security numbers.
What is Tokenomics? [ Tokenomics Explained With Animations ]
What Is Tokenomics?
Tokenomics dictate the supply and demand characteristics of a cryptocurrency.
But before diving into tokenomics, let’s take a look at what a token means.
What Is a Token?
A token is a digital unit of a cryptocurrency that is either used as a specific asset, or represents a particular use on the blockchain. Tokens can have multiple use cases, but the most common ones are as security, utility, or governance tokens.
Cryptocurrencies and tokens built on blockchains have pre-set, algorithmically created, issuance schedules. This means that we can predict with quite some accuracy how many coins will have been created by a certain day and time.
Though it is possible for most cryptoassets to have this issuance schedule altered, it would require quite a bit of effort. Thus, changing this schedule is very difficult.
This provides some predictability and security for token holders, in a way that is much more predictable and stable than how governments create and issue their currencies.
Why Is Tokenomics Important When Investing in Cryptocurrency?
Understanding the factors that will impact either supply or demand are of vital importance to both speculators and investors.
Perhaps the most important factor is to understand how the digital currency will be used.
Is there a clear link between the platform or service being built, and the asset?
If so, there is a strong chance that a growing service will require purchases that increase usage and demand, thus increasing the price. If this is not the case, what can the token be used for?
Other important questions include:
How many coins or tokens currently exist?
How many will exist in the future and when will they be created?
Who owns the coins? Are there some set aside to be released in the future to developers?
Have a large number of coins been lost, burned, deleted or are somehow unusable?
Tokenomics is also helpful as guidance to understand how much an asset might be worth in the future.
For example, many people new to crypto might think that any coin could become as valuable as Bitcoin, even though tokenomics may prove this to be impossible.
As an example, let’s look at two coins, Bitcoin Cash and Tron. Bitcoin Cash has the same total supply as Bitcoin, so thinking that it may become as valuable as the world’s biggest cryptocurrency — might be possible.
However, with more than 100 billion Tron already created, in order to break a few thousand dollars per-coin, Tron would need to become the most valuable business in the history of the world. The odds of that happening may be a bit far off.
While these questions may seem to require complex answers, they provide an extra way to view cryptoassets and to help understand whether one asset is more likely to have a great value and future, than another.
Crypto Report: Fund Tokenization
Securitize CEO Carlos Domingo joins Bloomberg’s Sonali Basak to discuss the tokenization of their funds with Hamilton Lane, and how it could expand access to private markets for a broader set of investors.
Crypto Tokenomics Explained For Beginners | What is Tokenomics?
Introduction to supply; market capitalization, fully diluted value; token allocation; vesting periods and unlocks.
Tokenization of Gold and Precious Metals
Alexander Tkachenko, CEO & Founder of VNX speaks about stablecoins and the regulated tokenization of gold and precious metals.
Tokenization of Everything
Creators can own and control their own digital content via decentralized tokenization.