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DOA TOKENOMICS FOR DUMMIES.pptx
- 1. Source, Andy Martin An Inro - For dummies 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 dummies 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.