Unpopular Opinion: Token Economics is MORE THAN Token Valuation
Unpopular Opinion: Token Economics is MORE than just your goddamn valuation model.
Firstly, I apologise for seeming rather annoyed because frankly, I am. 🤷🏻♀️ I’m truly sick and tired of the culture where everyone is just focusing on the valuation of things, instead of focusing on the true potential this technology can bring.
Singapore is one of the great regulation havens in the region, but this resulted in a lot of money looking for projects and ROIs. The main objective now, for the token economy, is to build projects for the investors. #$$$
Secondly, I’m tried of everyone using the MV=PQ model to value things. That model is called “Quantity theory of money” and what you learn in lesson 1 fo monetary economics. This model is made and created for FIAT money. It’s a good enough model. Adaptations are good, but truly absolutely not good enough to treat this model like the gospel of a bible.
Token economics is about the design of the economy through market design, mechanism design and token design. They differ based on the token type and token function. The model is also EVER EVOLVING. There is never a one-size-fits-all solution. But there are plenty of underlying similarities that mirror the economic theories out there.
In the meantime, I’m anti-fragile. Agree or disagree? Comment below and let’s have an open discussion.