Wednesday, March 30, 2022

Principles of tokenomics

This is an ongoing reflection on fundamental principles of tokenomics. 

We are document the main ideas on the OVN wiki, before we turn them into a post. 

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Many have called 2022 the year of the DAO. As this new form of organization becomes more popular people experiment with tokenomics, which are rules of issuance and (re)distribution of tokens that represent various things such as units of account, store of value, means of exchange, access rights, etc. 

A tokenomic model describes an economic game that is designed to incentivize and structure some type of collaborative activity and the maintenance and development of the infrastructure that allows that economic activity to take place. In this post we are going to elaborate on the fundamental principles that should constitute the basis of any tokenomics.

 

Principles

  1. Do not create artificial scarcity 
  2. Tax the fruit of activities, not the process itself 
  3. others to come...

 

Rationale

 This is where the rationale for every principle will be given.

 

See also

Current-see 

 

By AllOfUs