Beyond Boundaries: Leveraging No-Code Solutions for Industry Innovation
DOA TOKENOMICS FOR BUSINESS.pptx
1. Source, Andy Martin
An Intro for business
DAO TOKENOMICS
By - Andy Martin
10 step audio-visual introduction
28-Mar-22
2. Source, Andy Martin
1. DAO Tokenomics Terms
2. The User is in Control
3. DAO as a Token Economy
4. DOA as a Network Business
5. The Marketplace Token
6. Industry Reinvention
7. The DAO Tokenomics Equation
8. Three Governance Levels
9. DAO's business model parts
10. DAO value flow
An Intro - For business
DAO TOKENOMICS
3. Source, Andy Martin 3
web3 as a token economy = New internet owned by
innovators and users governed by tokenomics
Metaverse as a token economy = permissionless
economy of connected “verses” built on tokenomics
DAO Tokenomics = born digitally native economy plus
monetisation of real-world data in new virtual economies
28-Mar-22
4. Source, Andy Martin 4
blockchain governs state of
assets on the internet
.. with shared values to use
assets for the fair benefit of all
.. by everyone in a DAO
.. where “control”
= “govern” = “own”
In web3 user is a full
member of the internet
.. with rights to control
access to their data
.. using a wallet with tokens
for ownership
.. to initiate trading
in the Token Economy
.. members have a duty to
vote
.. for incentives for helpful
behaviours & fair value
… DAO Tokenomics
28-Mar-22
5. Source, Andy Martin
3. DAO as a Token Economy
• State machine for ownership of tokens
• Tracking provenance of who did what & when
• Distributed & decentralised source of the truth
Blockchain
• Individual controls access to their identity, NFT,
securities, utility or money
• Individual initiates buying and selling
Avatar
Wallet
NFT Value
Utility
SSI
• Community creates a purpose, values, & rules & is
then owned & controlled using tokens
• Smart contracts govern trading, monetising data
(NFT) governed by the data owner
• Tokens govern incentives & to democratize value
DAO
Enterprises
Go to Market as
a network
5
28-Mar-22
6. Source, Andy Martin
$
Debt funding Tokens
Key
Supply Distribute
DeFi Marketplace
Service layer replaces commercial
banks to create credit
Smart contract
DAO aggregates (small)
investors Fiat on/off ramp
Smart contract
matches finance to demand
Smart contract
Pays investor
Logistics
Manufacture
Smart contract
releases finance from escrow
Digital
liquidity $
$
4. DAO is a Networked Business
6
28-Mar-22
7. Source, Andy Martin
Research
Distribution /
Wellness
DeFi Marketplace
Service layer replaces commercial
banks to create credit
Smart contract
DAO aggregates (small)
investors Fiat on/off ramp
App
Join Clinical Trial
App
Buy Service
Clinical trial
Diagnose &
monitor
App
Buy / Sell Data
Health
Token $
$
Service fees
NFT value NFT value
5. The Marketplace Token
Key Tokens 7
28-Mar-22
8. Source, Andy Martin
Go to market
• Network effects
Products
• Revenue & value
Tokenomics
• Incentives / DeFi
Innovation Platform Governance
• As a network
• Network, market or
industry
• DAO
• Zone of
sovereignty/rules
• Buy & sell data
• Apps & wallets earn
value
• Fees for activity
• Professional &
foundation
services
• Store value in the
market token(s)
• Skill & reputation
• Win-win-win
• Behaviours
• Composability of
funding protocols
• New funding /
reserve model
6. Industry reinvention
8
28-Mar-22
9. Source, Andy Martin
7. The DAO Tokenomics Equation
9
Key: † Regulated in the “As Is” world
Collateral
• Yield
• Rent
Community
• Innovators
• Users
Earn
• Creativity
• Behaviour
Value
• Access
• Incentive
= + + +
+
Asset
• Derivative
• AI-generated
Funding
• Gamified
• Composable
User
• Anon.
• KYC†
Govern
• Marketplace
• Library
NFT Utility
SSI DAO
DeFi
$
… or real-world
abstraction†
Digitally
native
Virtual
economy
Trade
• Buy-sell
• Lend-borrow
Govern
• Marketplace
• Library
28-Mar-22
10. Source, Andy Martin
8. Three Governance Levels
10
Governance
Apps.
•Trading
•Regulation
•Payments
•Global trade
•Trade finance
•Provenance
•Patient ID
•Clinical trials
•Supply chain
Business
networks
DAO
Wallet Access
Internet
of ledgers
$ X-chain
+
+
Finance
Supply chain
Health
NFT Value
Utility
SSI Security
28-Mar-22
11. Source, Andy Martin
9. DAO’s Business Model Parts
• Economic model, incentives,
disincentives & behaviour
changes
• Governance model, how
decisions are made on-chain via
tokens & voting or off-chain &
guiding principles of fair,
democratic & open
• Commercial model, of
monetisation & fees
Business model
Providers
Benefits
Incentive
Behaviours
Openness
Commercial
Co-opetition
Govern
Decentralise
Monetise
Funding
Democracy
Trade,
trust &
ownership
Key: Token liquidity
11
28-Mar-22
12. Source, Andy Martin
All fee, access and stake value settlement in (utility) tokens Outflow
Inflow
Key
DAO
entity
Issue1
Data
queries
Access6
Data
owners
Fee share6
Fee share6
Innovators
apps
Stake5 App fee5
Access6
Validate
& order
Fee4
Fee share5
Redeem1
Reserve fund1
Collateral1
10. DAO Value Flow (1)
12
28-Mar-22
13. Source, Andy Martin
DAO
entity
Data
owners
Data
queries
Innovators
apps
Validate
& order
Value flow
Tokens &
Reserve fund
Apps
Data
Outflow Redeem1 - - - -
Inflow Issue1 - - - -
Inflow Fee share5 - - App fee5 -
Outflow - - - Stake5 -
Inflow Fee share6 Fee share6 - - Fee4
Outflow - - Access6 -
All fee, access and stake value settlement in (utility) tokens Outflow
Inflow
Key
Access6
10. DAO Value Flow (2)
13
28-Mar-22
14. Source, Andy Martin
DAO Token Economy
Data owners
Validate and
order
Basic services Identity5 Provenance5 Payments5
Collaboration benefits Fee share6
Marketplace Buy/sell data6 Innovator apps5
Fee4
value
data
data
value
Data queriers
Collaboration benefits
value
data
Innovators
Collaboration benefits
value
data
Crypto - fiat Reserve fund1
Customer
& economic
actors
Demand
value
Service
Key
Value flow in marketplace token
Data is tokenized (NFT)
10. DAO Value Flow (3)
14
28-Mar-22
15. Source, Andy Martin
References
Martin, Andy, The Token Economy (October 16, 2021). Available at
SSRN: https://ssrn.com/abstract=3972111 or http://dx.doi.org/10.2139/
ssrn.3972111
Martin, Andy, 5 Laws of Tokenomics (January 26, 2022). Available at
SSRN: https://ssrn.com/abstract=4018141 or http://dx.doi.org/10.2139/
ssrn.4018141
15
28-Mar-22
Editor's Notes
DAO Tokenomics is used to fairly govern communities so that their assets can be best used to democratically create value for all.
DAO: a digital organization built on top of a Blockchain, with an open and shared balance sheet, core rules on-chain (scripts), and collective ownership through fungible tokens.
DeFi (Decentralized Finance): finance services, like borrowing, lending, currency exchange, provided by scripts on top of a Blockchain, removing thus the bank intermediary
Metaverse = experience
Web3 = community
NFT = ownership
Wallet = identity
Crypto = money / value
Blockchain = infrastructure
Blockchain - rewrites and codifies the economics of trade but only when the cost and time required to establish that trust and ownership is at or below a tipping point per transaction. Imagine when central banks issue CBDC then all of the costs of commercial banks, to create credit, can be replaced by blockchain’s automated distributed, decentralized finance as a new service layer. That surely changes the economic model a lot in favour of blockchain. What then becomes critical is who owns the consumer facing wallet infrastructures? For example in an economy of intelligent “things” trading with other intelligent “things” this layer becomes a wallet held on hardware chip in the device.
financial services new unbundling and reintermediation opportunities of collateral management enabled by global access to liquidity.
The DAO is the automated “shareholders meeting” for these new networked business” but change “share” to “token”. In my picture we have direct token ownership (the new decentralised equity) and it’s leveraged version through DeFi (the new decentralised debt)
DAO: a digital organization built on top of a Blockchain, with an open and shared balance sheet, core rules on-chain (scripts), and collective ownership through fungible tokens.
add in the 2nd row “Products & Services” / “Buy-Sell data & services” “Apps & Personal Wallets earning fees & payments” / “fees for activities, professional services & foundation services” / “Store value in the market (tokens) + store experience & worth (Reputation Tokens)
When a CEO is measured on EPS and the network DAO’s tokens performance
*blockchain as a structural concept* for business models/processes.
For this you need an economic model with a token that has to have value and liquidity in the real world. This has unfortunately proven to be the Achilles heel in recent times, when we see single individuals being able to influence and manipulate the value of the said tokens, to unacceptable degrees. Decentralization of network has, in effect, given rise a Centralization of influence. Also, this has become the convenient stick with which the regulators and governments, afraid to lose their power over their monetary systems, have been beating back this inevitable revolution.
Incentives and disincentives are primarily for influencing behavior on-chain as well as off-chain. This behavior should promote multi-stakeholders collaboration on the network giving rise to opportunities for monetisation. So, incentives and disincentives are indirectly related to monetisation.
In my view a neutral ground where data can freely interoperate, in a standardized format, be exchanged instantaneously and priced with real-time settlement, is a critical element to realize this vision.
A real cloud so to say. Where users retain control and sovereignity over their data.As timestamp sever the blockchain provides the structuring of data and hierarchy in order to index, screen and audit the exponentially growing amounts of data more easily.Bottom line in is the blockchain is the missing piece for many visions we have, including AI, the datacosm and the metanet.