BlockchainCommunity OwnedCoop

Macro Blockchain #1: The End of Aggregation Theory – Token Economy

NeighborSQUAD is researching how a Token Economy might help to jump start bringing in early adopters interested in forming Worker Owned Coops that would provide service and support for Community Owned Networks.

Diminishing UX/Network Effects: New Token-Based Incentivizes for Early AdoptersBefore blockchains and the digital scarcity of tokens, it was difficult to attract early users to a new network. But now, a company can “pay” early adopters in a native token and those early adopters will be incentivized to increase the value of their tokens. I personally love Fred Ehrsam’s description and visual for this:So how do you get people to join a brand new network? You give people partial ownership of the network. Just like equity in a startup, it is more valuable to join the network early because you get more ownership. Decentralized applications do this by paying their contributors in their token. And there is potential for that token (partial ownership of the network) to be worth more in the future. This is equivalent to being a miner in the early days of Bitcoin. …When the network is less populated and useful you now have a stronger incentive to join it.This system has been used by startups for years to attract employees to a young company, and now decentralized apps are using it to incentivize all potential users around the world to join the app early on.

Source: Macro Blockchain #1: The End of Aggregation Theory – Token Economy

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