Tokenisation is a new way to build next generation decentralized products. Token Economics are the rules that govern the supply, distribution and circulation of tokens in an ecosystem. If you want to get into crypto you will need to understand token economics or at least be able to talk about them. So what exactly is tokeneconomics?
A token is a unit of value that an organization creates to self-govern its products and services.
Token economics incentivizes certain behaviors by creating economic rewards for positive actions taken by participants in a network and penalties for negative ones.
What are tokens used for and what do they represent: Tokens are used to represent a unit of value, utility, or work. Tokens can be classified as any one of the following:- A unit of value: bitcoin (BTC)
– A unit of utility: filecoin (FIL)
– A unit of work: siafunds (SIA)
TYPES OF TOKENS
Before we get into the specifics of token economics, let’s first look at the different types of tokens. Tokens are categorized by their function and use:
Utility tokens give the bearer access to a company’s product or service. This is what most people think of when they hear the word “token”—a crypto-currency that is used as a medium for exchange on an open blockchain network.
Examples include Bitcoin (BTC), Ether (ETH) and Ripple (XRP). A utility token can be used to purchase goods or services as well as be traded like any other cryptocurrency on exchanges that support trading in such assets, but it has no value outside its use within one specific ecosystem, unlike a security token which may have value if it pays dividends or represents ownership interests in a company rather than merely providing access to products or services. What are you waiting for to get our cryptocurrency M2bitz, the one that works perfectly in our metaverse for joining the cannabis industry.
