Relayers, and other Modular Trade Network participants will be responsible for contributing to pools of networked liquidity to onboard the world to the Token Economy. Mainstream adoption will catalyze the reorganization of institutions, industries, and social constructs to put users in control. Like all transformative innovations, a brief period of creative destruction will force legacy firms across industries with heavy investments into enterprise technology to maintain relevancy. This exponential adoption of tokens will lead to one of the most vibrant innovation ecosystems in history as new resources (time, identity, attention) become tokenized. There is an accelerating rate of talent migration (not just engineers) into the blockchain space. Based on token sales allowing the pre-distribution of value, the network effects of incentivizing open source development, and the transformative technology of blockchains the Token Economy has already started. However, in the long run, these systems are exploited and the evolution of a decentralized system is inevitable. Centralized systems allow easier creation and enforcement of rules via clear hierarchies of authority. Historically, the common practice to test a novel system has been to use a centralized structure. Token Economy: An economic system, similar to a market economy, where decisions are made purely through supply and demand, but facilitated or executed with a token.Įconomic systems evolve over a long time, they don’t just arrive fully functional and frictionless.Historically, different economic systems (market, command, traditional, or mixed) have vied for dominance. Economy: The allocation of scarce resources.Historically, tokens have been analog and have included everything from shells, to precious metals, to fiat currencies. Token: A digital asset, object, or representation of something that can be owned.This article adds to the excellent exploration begun by Ehrsam, Tomaino, Szabo, Warren, and Srinivasan. You’ve probably heard quite a bit about the Token Economy, but what is it and how do we get there? No one, including Radar, has a crystal ball. Considerations for onboarding the world to the fifth economic system
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