이번 세미나에서는 1부 5장 Seven Wonders of Token Economics를 다룹니다.

Chapter 5. Seven Wonders of Token Economics

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• Network Effects
  • The more people use it, the more valuable the ecosystem is. Network effects are closely linked to scalability.
  • A network effect is a type of defence that you can build up.
    • Once a company builds up their defence with network effects, we see the common outcome of a small number of dominant large companies.
  • Signalling
    • Signaling theory is like playing a game of charades. You let the other person guess your card without saying the words.
    • Examples of signals:
      • Be innovative so that big publications pick up on your project. These are signals to the public that your company is so innovative that these big publishers are interested to report on them. That’s how you can win the trust of the public.
      • Pay money for your project/article to be published on Forbes, Techcrunch, Mashable, etc.
      • Whitepapers that are peer-reviewed by academics.
      • Frequently updated Github.
      • Having a wide variety of experts with domain knowledge in your team (computer scientists, entrepreneurs, economists, academics).
      • An active community of real and non-bot users on social platforms like Twitter, Telegram, Discord.
      • (If MVP is out) Total value locked in the protocol and ratio to the price of token.
      • In addition to whitepapers, publish token economics papers, technical papers, yellow papers.
  • Monetary Policy
    • Centralised Money
      • Things to consider in monetary economics:
        • Fiscal policy: changing taxes, government spending, borrowing (aka managing money indirectly through governance mechanisms).
        • Monetary policy: increasing/decreasing money supply, how to sustain demand of the currency through inflation targeting, stability of prices.
        • Exchange rate regimes (if necessary).
      • Central banks control a country’s currency. The Federal Reserve System (FED) in the USA controls how the USD is managed. The Bank of England controls how the GBP is managed. MAS controls how the the SGD is managed. Pretty much ~10 smart people in these organisations decide how the currency is managed and governed. That is very centralised.
    • Decentralised Money
      • The difference is that we want this to be decentralised. That means some core decisions are embedded in code and baked into the token ecosystem. Depending on the mechanism design, people in the network can vote to change certain systems. It gives more power to the people.
  • Property Rights
    • Property rights are socially enforced constructs to determine how a resource or good is used and owned.
    • We are now tokenising securities and putting them on blockchain, which gives you some form of rights to an asset.
    • Since goods are digital now, property rights are also evolving. We have to be creative to determine how to allocate these digital goods.
  • Lock-In
    • Lock-in is a way to get people to stay on your system. We essentially lock them in. There are many ways to do that:
      • Make it difficult to leave the system (non-monetary ways).
      • Keep upgrading the system so they have a reason to stay.
      • Make it expensive to change the system.
    • We can create lock-in effects through three methods: product itself, complementary products (networks), tacit knowledge.
  • Principal-Agent Theory
    • Simply put, it is to increase skin in the game for participants. This helps to align the incentives of all participants, as they will now have something to lose.
    • 예) Utilities system
      • Your behaviour changes depending on whether the utility bills are included in the rent or excluded from the rent. Landlords are more likely to exclude utilities from rent to encourage tenants to be more mindful with the usage of utilities.
  • Schelling Point
    • A natural point people tend towards when there is a lack of communication.