Want to grow Crypto business by 6,667%? Too good to be true? But its happening and a well thought Tokenomics strategy can help to make it real. This is what the blog post is all about … from 101 to use cases to how to rollout a successful token in the Web3 ecosystem.
So what is tokenomics?
Tokenomics is the economics of Web3 and the whole ecosystem lives on Incentivization. Think about the airmiles a frequent flyer earns, those credit points gets one discounts or things limited on the platform but with Tokenomics those points or, to be precise, tokens can be used as actual money. Now that explains its relevance as a digital asset. Use cases around blockchain are breeding every day, but to be sustainable, key is to incentivize the Web3 community with perfect Tokenomics – a combination of token and economics. Where economy relates to the incentivization mechanics.
In a way, stocks are the OG tokens. Stocks “tokenized” corporations – allowing small investors to own small stakes. With balockchain, anything can be tokenized. Buy an apartment in New York with 10 friends, break it up into 10 tokens. Tokenization is truly the next big thing since slice bread.
In 2010, when the smart phone revolution was just starting, smart companies pivoted to a “mobile first” strategy. Even though 90% of their revenue was coming from desktop, the prescient strategists could see that mobile traffic will be the how future consumers will access the internet. The same thing is happening now … smart business are taking a “crypto/token-first strategy”.
Material progress occurs when humans are incentivized. That’s what money did. Capitalism has been the ultimate incentivization system. Over the last 2 centuries, through capitalism the world has made unprecedented progress. One human quality metric after another has improved.
With blockchain and crypto, anyone can create a token with an incentivization system. This is tokenomics …. Token and Economics …. Collectively the sum of these systems is an incentivization system that humans have never seen or experienced before. That is why tokenomics is important.
The first iPhone was released in 2007. In 2010 companies were still making 90% of their digital revenue off of the desktop. But, prescient companies figured out that the future was in your hands …. They moved to a mobile-first strategy (even though only a sliver of revenue was coming from that channel) …. Super smart strategy …. They were skating to where the puck was going.
We find ourselves at a similar juncture in time where Web3 (powered by the blockchain technology), presents a very small opportunity now. But, if it follows the same suit as the internet revolution, it will break everything that comes in its way. Just like the internet took off and compounded in growth, Web3 is taking off … its following uncannily the same spread as the internet …. Raoul Paul of GMI
Raoul Pal on Twitter : “We updated our well-known chart of crypto adoption vs the internet (both starting at 5m users). 2021 was an accelerating growth year and the Reed’s Law effect of networks built upon networks creating even more exponentiality is clear.”
