1.
‘Initial Commons Offering’
for 『Integral Blockchain』
Jongseung Kim
SK Telecom Blockchain Business Development Unit
2018.4.27

2.
Cryptocurrency Market Cap.
<Source:https://coinmarketcap.com/charts>
Total Market Cap. : $400B ~ $829B

3.
Percentage of Total Market Capitalization (Dominance)
<Source:https://coinmarketcap.com/charts>

4.
MITH Coin Chart (bithumb)
<Source:https://www.bithumb.com/#>
Price 250  28,812  590 !!!

5.
Is Technology Something to Love or Fear?
<Source:http://iflas.blogspot.kr/2018/04/integral-technology-in-blockchain.html?m=1>
Technological Optimism
Technological Pessimism
Technological Determinism
Technological Neutralism
Technological
Constructivism
Technology and Society
Influence Each Other

6.
What is Integral Technology?
<Source:http://iflas.blogspot.kr/2018/04/integral-technology-in-blockchain.html?m=1>
Technologies need to be more
internally and externally coherent.
Internal coherence describes how
their design does not undermine
the intention for their creation.
External coherence describes
how their design does not
undermine the social and political
system that they depend upon
and which holds technologies.
Stakeholder Accountability
 Intended Safety
Optimal Availability
Avoiding Externalities
Meaningful Purpose
Managing Externalities

7.
The Need of ‘Blockchain for Good’
<Source:https://www.weforum.org/agenda/2018/04/blockchain-survive-backlash-social-purpose-jem-bendall>
Is it appropriate for people apparently seeking economic justice and equal
opportunity to use a blockchain in which only heavily invested actors
receive new tokens?
Is it appropriate for those seeking to put a new medium of exchange in
the hands of the masses to use a blockchain whose tokens are mostly
hoarded by speculators?
Is it appropriate for a carbon emissions reduction project to use a
blockchain which emits as much CO2 as a small country?
Most blockchain projects bolt a purpose onto code and governance
systems that were designed without public interests in mind.

8.
What is Integral Blockchain?
‘Integral Blockchain’ initiatives aligns its codebase and internal governance
with positive social and environmental outcomes.
These projects strive to be an integral part of a healthy society,
rather than ends-in-themselves.
<Source:https://www.weforum.org/agenda/2018/04/blockchain-survive-backlash-social-purpose-jem-bendall>
Holochain Local Pay
Meaningful Services to Humanity

9.
The Battle Over the Institutional Ecology
To what extent will resources necessary for information production and
exchange be governed as a commons,
free for all to use and biased in their availability in favor of none?
Substantial Redistribution of Power and Money
Property, together with contract, is the core institutional component of
markets, and a core institutional element of liberal societies.
Commons are another core institutional component of freedom of action
in free societies, but they are structured to enable action that is not based
on exclusive control over the resources necessary for action.
<Source:YochaiBenkler,‘TheWealthofNetworks’,2006>

10.
Commons-based Peer Production
A new modality of organizing production
based on sharing resources and outputs among widely distributed,
loosely connected individuals who cooperate with each other
without relying on either market signals or managerial commands
Decentralized Collaborative Nonproprietary
Depending on individual action that is self-selected and decentralized,
rather than hierarchically assigned
<Source:YochaiBenkler,‘TheWealthofNetworks’,2006>

11.
4 Types of Commons
Open Commons
Limited-access Common Resources
Open Access
Regulated Commons
<Source:YochaiBenkler,‘TheWealthofNetworks’,2006>

12.
Currencies of the Commons
<Source:CharlesEisenstein.‘SacredEconomics’,2011>
Decentralized Self-Organizing Emergent
Peer-to-Peer Ecologically Integrated

13.
Value Systems of Commons
Functional Value
Ideological Values
Social Value
Technical Value (Utility)
Objectively Quantifiable
Emotional Value (Social Capital)
only be Qualitatively and Subjectively Assessed
Abstract Value (Freedom, Autonomy, Cooperation etc.)
Transcendental Character (Ethical or Moral Principles)
<Source:PremaveraDeFilippi,‘TranslatingCommons-BasedPeerProductionValuesintoMetrics’,2015>

14.
Commons based Cryptocurrency
<Source:https://coinmarketcap.com/charts>
Created with a view
to support, promote, or incentivize ‘Commons based Peer Production’
Incentivize the members to work for the community and
make the community network self-sustainable

15.
From Coin to Commons
Initial Coin Offering
Initial Commons Offering

16.
Protocol Cooperativism
BEYOND PLATFORMS : PROTOCOLS
* Protocol : Language, Convention, Standard
<Source:https://platform.coop/stories/protocol-cooperativism>
Platform company model is not one that takes full advantage of the
potential to have a truly distributed network.
They still have a central platform operator at their core, providing
coordination, quality assurance and, most essentially, trust.
However, it is possible to go beyond platforms to protocols – to commonly
agreed ways of operating.
“Blockchain based Protocol”

17.
ICO Ecosystem
Cryptocurrency
Exchange
Investor
(Wallet Address)
ICO
Foundation
(Wallet Address)
Blockchain
Start-up
ICO
Consulting
Company
Blockchain System Delivery
Delivery/Operation Fee
Ether/
Bitcoin
Donation
New
Token
Sales
Listing Fee(?)
Listing
Fiat
Money
Crypto-
currency
Service
Fee
Legal/
Financial
Advice

18.
Different Fundraising Types
<Source:NikolausLipusch,‘InitialCoinOfferings’,2018>
Transaction Costs
Intermediation
Low
High
High
ICO
Crowd-
funding
VC
IPO

19.
ICO Funding Trend
<Source:https://www.coindesk.com/ico-tracker>
All-Time Cumulative Funding : $12.11B

20.
ICO Funding Size & Number
<Source:https://www.coindesk.com/ico-tracker>
343 202$6.33B$5.48B
1Q1Q

21.
What is Token?
<Source:MelanieSwan,‘BlockchainEconomics’,2018>
Token : A complicated and feature-rich form of money, and a tool for
enabling participants
- Programmable functions built into tokens : access, voting, action-taking,
fundraising, dividends, notification, participation, liquidity.
(tradability, exchangeability)
Tokenization : Process of turning an asset, right, or digital good
into an interchangeable unit to power an ecosystem
Participation Voting Choosing
Resource
Access

22.
Tokens-Regulations (Swiss FINMA Guideline)
<Source:https://www.finma.ch/en/news/2018/02/20180216-mm-ico-wegleitung>
Payment
Tokens
Utility
Tokens
Asset
Tokens
are synonymous with cryptocurrencies and have no further
functions or links to other development projects. Tokens may in some
cases only develop the necessary functionality and become accepted
as a means of payment over a period of time.
are tokens which are intended to provide digital access to an
application or service.
represent assets such as participations in real physical underlyings,
companies, or earnings streams, or an entitlement to dividends
or interest payments. In terms of their economic function, the
tokens are analogous to equities, bonds or derivatives.

23.
Token Classification Framework
Technical Layer
Blockchain-native Token,
Non-native Protocol Token,
dApp Token
Legal Status
Utility Token, Security Token,
Cryptocurrency
Underlying Value
Asset-backed Token,
Network Token, Share-like token
Purpose
Cryptocurrency, Network Token,
Investment Token
Utility
Usage Tokens, Work Tokens,
Hybrid Tokens
<Source:http://www.untitled-inc.com/the-token-classification-framework-a-multi-dimensional-tool-for-understanding-and-classifying-crypto-tokens>
Cryptographic
Token

24.
Price-Stable Cryptographic Token
<Source:https://hackernoon.com/stablecoins-designing-a-price-stable-cryptocurrency-6bf24e2689e5>
Fiat-
Collateralized
Crypto-
Collateralized
Non-
Collateralized
100% price-stable
Simplest
Less vulnerable to hacks
Centralized
Expensive and slow liquidation into fiat
Highly regulated
Need regular audits
Ex) Tether, TrueUSD, Digix Gold
More decentralized
Can liquidate quickly and cheaply
Can be used to create leverage
Less price stable than fiat
Tied to the health of a particular
cryptocurrency
Inefficient use of capital
Ex) BitUSD, Dai
No collateral required
Most decentralized and independent
Ex) Basecoin
Require continual growth
Most vulnerable to crypto decline
Difficult to analyze safety bound or health

25.
Token Archetypes
<Source:http://www.untitled-inc.com/the-token-classification-framework-a-multi-dimensional-tool-for-understanding-and-classifying-crypto-tokens>
Commons based
Cryptographic Token

26.
Design of Tokenized Ecosystem
<Source:https://blog.oceanprotocol.com/towards-a-practice-of-token-engineering-b02feeeff7ca>
Game
Theory
Mechanism
Design
Analyzing incentives
from an economic standpoint
Synthesizing
incentivized systems
Token Engineering for Social Commons

27.
Token Economy Design Rule for ICO
<Source:https://blog.icofunding.com/tokens-and-tokenomics-the-magic-of-icos-a7a886ca323c>
The
Discount
Exclusive
Membership
Network
Effect
Disintermediation
Data
Monetization
Payment
System
Token
Supply and Demand
 Provides a significant advantage to users of the tokens
 Incentivises users to be early adopters of the token
 Incentivises players to bring new users to the ecosystem
 Is appealing to token buyers at the ICO in their “speculative” role, as something
that will appreciate if the project gets traction

28.
Tokenized World
Asset
Servitization
Asset
Tokenization
Social Value
Realization
Consensus
Algorithm
Issuing
Token
Commons based
Cryptographic Token

29.
Governance Shift (From Rule of Law to Rule of Code)
Bureaucratic
Governance
rule of office
Panotic
Governance
rule of gaze
Algocratic
Governance
rule of code
Bureaucratic Paper-based System  Technologically driven Code-based System
(for Anti Monopoly, Decentralized Authority)
<Source:A.Aneesh,‘TechnologicallyCodedAuthority:ThePost-IndustrialDeclineinBureaucraticHierarchies’,2002>

30.
Code as Law
“LEX Cryptographica”
‘Autonomous’ Code-based Rules
“By relying on blockchain technology,
governments could regulate society more efficiently
by reducing the costs of regulatory compliance and law enforcement, automating laws,
while simultaneously reducing the degree of uncertainty
that is inherent in the legal prose.”
- Primavera De Filippi, <Blockchain and the Law>

31.
Cases of Algorithmic Governance
Decentralized Autonomous Organization
Smart Term Sheet, Due Diligence 2.0
(Hogan Lovells)

32.
Crypto-Catallaxy
Spontaneous Order Mutual Adjustment
Spontaneous Organization
‘Game of Catallaxy’
(F. A. Hayek)
Commons-based
Cryptocurrency
Algocratic
Governance
Social Decentralism

33.
“Omnia Sunt Communia”
- Thomas Müntzer