DIY : Tokenomics 101 – Moustafa Amin – Medium
If you’re into the Crypto currency world, either as an investor, developer or even an enthusiast, you must be hearing the term ‘Tokenomics’ quite a lot (maybe daily if you’re a daily follower like me)
Tokenomics or Token Economics is the science that covers and details the different characteristics of a certain token in relation to its platform (that is/will be based over blockchain)
This includes many aspects like:
· Fixed or variable supply
· Maximum number of tokens (total supply)
· Token value
· Inflation taken into consideration or not
· Categories of tokens
· Number of tokens per each category
· Token function(s) — Yes, you’re getting it right, sometimes the token has many functions and sometimes its function changes over time
· Many more
The question is: how to start with the Tokenomics for a certain project?
Simple answer: hire an expert 🙂
Another answer (especially if you don’t have money yet to pay for that expert): DIY!
The DIY approach is exactly what we’re gonna cover in this series of articles
Few thoughts to warm up
Have you ever been to KidZania? Of course with some kids, not alone 🙂
In Kidzania, you will find that they deal with KidZos
Apparently, KidZo is the currency specific to KidZania (It is not a FIAT or regular money and not a Crypto currency of course)
Without going through online search (though it will not help much), can you describe the Tokenomics for the KidZo currency?
If it has a finite maximum supply; it will become a scarce resource and with the increasing number of visitors to KidZania branches worldwide; its value will increase (dramatically I’d say)
Value is always linked to the local currency for that KidZania branch, so for a kid to play a game that costs — let’s say — $5 and if the KidZo value is 1:1 proportional to the $, the game cost is 5 KidZos, if the price increases in holidays and high season (for example); the number of KidZos needed to ‘unlock’ that game will increase accordingly and so on
Categories & Functions
There are normally two or three categories:
o To unlock the different games that kids will enjoy
o To reward the kids if they perform well in a game
o Sometimes there is the option to pay for some food, beverages and souvenirs with KidZos (not all the time and not in all branches)
No reserved tokens for employees or for investors 🙂 though you can keep the remaining KidZos for your future visits.
Nice & interesting start, huh?
See you in the next article!