Token Economy: Money, NFTs & DeFi

Embedded rights: Tokens can represent the “property rights”3 to an asset, that can be both digital or physical. Tokens can be designed to represent temporal or permanent “access and usage rights” to assets, services, events, spaces, etc. Tokens can also represent various governance rights such as “voting rights” or “management rights.” The term “as

Application tokens vs. infrastructure tokens: “Infrastructure tokens” – often also referred to as “protocol tokens” – are tokens that either steer public blockchain networks (1st layer), their second-layer protocols such as state channels, or other Web3 protocols such as distributed file storage networks.

The monetary policy mechanisms of a currency depend on the type of money used:

Tokens can also be programmed to include access rights, usage rights, voting rights or management rights.

Identity tokens, certificates, & reputation:

The tokenization of SME shares could potentially add more liquidity and new opportunities for entrepreneurs and investors alike. This could create a more P2P form of microfinancing that does not need the intermediary services of international organizations such as the International Monetary Fund or the World Bank. However, opening up global markets

Paying out dividends could be conducted with a smart contract and on the fly, which is an upgrade from most state-of-the-art financial settlement systems.

Additionally, a new trade-off emerges between the following goals: (a) exchange rate stability, (c) decentralization & autonomy, and (c) capital efficiency.

Redefining the Concept of Money and Value Creation While Bitcoin (BTC) was originally designed with the purpose of creating P2P (“peer-to-peer”) money without banks, it really is much more. The underlying P2P protocol that enables this novel kind of P2P electronic money has proven to be a gateway to a new type of economic value creation. The consen