The document discusses the blockchain economy and tokens. It provides an overview of William Mougayar's background and interests in the blockchain space. It then covers several topics regarding tokens and decentralization, including the difference between tokens 1.0 and 2.0, ensuring token utility fits the market, examples of decentralization, and the current and future state of the blockchain market. Regulatory issues are also addressed. In summary, the document provides insights from William Mougayar on various aspects of the blockchain economy and decentralized applications.

1. The Blockchain Economy
William Mougayar
Investor, Advisor, Board Member
Managing Partner, JM3 Capital
Author, The Business Blockchain
Founder, The Token Summit and WMX
@wmougayar
wmougayar@gmail.com
Milano, 5 giugno 2018

2. Disclosures and Market Activities
• Book (10 languages)
• Token Summit
• Blogging
• WMX Blockchain Index
• Tech Accelerators & VC
relationships
• Knowledge websites
• Strategic Advisory
• Boards & Foundations
• Startups Investments
• ICOs participation
• Regulatory interactions
© 2018 William Mougayar @wmougayar

3. Are Tokens a distraction or
catalyst to Decentralization?
© 2018 William Mougayar @wmougayar

4. Tokens 1.0 vs. Tokens 2.0
Copying what we see
vs.
Inventing what we don’t see
© 2017 William Mougayar @wmougayar

5. OLD
NEW
NEW
OLD
NEW
NEW
COMPANIES
SCOPE
© 2018 William Mougayar @wmougayar
Segmentation of
Implementations
?
✔
1.0
2.0
B2B

6. Staying True to Blockchain Fundamentals Is
EXTREMELY Important, but Often Forgotten
 Replacing intermediaries
 New (digital) Value liquidity
 Proofs of X
 Automatically enacting consequences
 P2P infrastructures
 Decentralized governance
 New technical protocols
 New ownership models
© 2018 William Mougayar @wmougayar

7. Tokens Jargon
Utility
Payment
Staking
Asset
Security Commodity
Air
Dropping
Locking
Burning
© 2017 William Mougayar @wmougayar

8. If you are thinking “Tokens”
1. A token is not a carrot
2. Token must be native to the
blockchain/App for maximum
leverage
3. If not, proving the Token-to-
Market Fit will be more difficult
© 2017 William Mougayar @wmougayar

9. Token-to-Market Fit
is the new
Product-to-Market Fit
© 2017 William Mougayar @wmougayar

10. The killer app for the blockchain is
not tokens, but it is the creation of
private economies or ecosystems.
Tokens are just enablers to that.
© 2017 William Mougayar @wmougayar

11. © 2018 William Mougayar @wmougayarSource: Elementus

12. © 2017 William Mougayar @wmougayar

13. Source: Bloxy.info

14. New Tokens
Created Daily
200-300
Source: Bloxy.info

15. Total Participants
in Crowdsales
1M
Source: William Mougayar

16. Smart Contracts
Created Daily
20,000
Source: Bloxy.info

17. Smart Contracts
Used Daily
1M
Source: Bloxy.info

18. Ethereum Txns
from Smart
Contracts
53%
Source: Amberdata

19. CryptoKitties
Txns in first 6
months
2.8M
Source: Amberdata

20. © 2018 William Mougayar @wmougayar
Tracking the Blockchain Market with Numbers
Market Cap _ USD 280 B *
Daily Trades _ USD 18 B
Total Raised _ USD 26 B
Coins Traded _ 1,639
Apps _ 5,000+
Macro View
• Active Users (Daily, Weekly or
Monthly)
• Total transactions (number)
• Value of transactions (value)
• Balances in smart contracts (value)
• Transactions to/from contracts
(number)
• Value of transactions to/from
contracts (value)
• Blockchain rewards to users (value)
• Wallets value (value)
Outcomes
• Unique addresses
• Active addresses
• Wallets
• Nodes
• Transactions per second
• Blocks per hour
• Developers
• API calls
• Software downloads
• Repositories
• Commits
• App downloads
• Clients
Activity (numbers)
Traction View
* as of June 14 2018, Source: CoinMarketCap

21. Decentralization
On-Chain
0%
100%
100% IDEAL
?
?
© 2018 William Mougayar
@wmougayar

22. Ideals of Decentralized Applications
① P2P infrastructure
② Underlying protocols
③ Decentralized operations
④ Blockchain transactions
⑤ Distributed content
⑥ End-user ownership empowerment
⑦ Decentralized autonomy
⑧ Distribution of rewards/benefits
© 2018 William Mougayar @wmougayar

23. Some Decentralization Examples
• Blockchains
• P2P Commerce (OpenBazaar)
• CryptoAssets Trading (CryptoKitties)
• Decentralized Exchanges (0x)
• Decentralized Storage (Storj, Filecoin)
• Decentralized Computing (Golem, Dfinity)
• Decentralized Content (Peepeth)
• More…
© 2018 William Mougayar @wmougayar

24. Where Are All the Decentralized Apps
© 2018 William Mougayar @wmougayar

25. ① What needs to work
② What needs more work
③ What won’t work
© 2018 William Mougayar @wmougayar

26. What needs to work
• Standards
• Scalability
• Interoperability
• New exchanges / clearing houses
• Native assets (creative, finance, physical)
• Token types
• Economic models
© 2018 William Mougayar @wmougayar

27. What needs more work
• Killer features
• Stablecoins
• On-chain governance
• Understanding economic models
© 2018 William Mougayar @wmougayar

28. What won’t work
• Boil the ocean approaches
• Head-on disruption
• White papers
• Dressed-up websites
• Cool ideas
• No governance
• High valuations too early
© 2018 William Mougayar @wmougayar

29. The point of attempting to
classify tokens is not to
better regulate them. It is
to better understand them.
© 2018 William Mougayar @wmougayar

30. © 2017 William Mougayar @wmougayar
Token Utility is Simple
 Right
 Ownership
 Work
 Currency

31. What Should Regulators Do?
1. Apply existing regulations
2. Update existing regulations
3. Allow self-regulation
4. Create new regulations
5. Freeze regulation with Safe Harbors
6. Recognize a new asset class
7. Harmonize global regulation
© 2018 William Mougayar @wmougayar
 Innovative
 More Difficult
 Easiest

32. Current Regulation Landscape
1. 4 spheres: Asia, NA, Europe, Alternative
jurisdictions (Liechtenstein, Gibraltar, Malta, Cayman,
etc.)
2. Balkanization of regulation is already here
3. Competition vs. harmonization
4. Classification of tokens will be difficult
© 2018 William Mougayar @wmougayar

33. Selling the
Vision
Build-out
Installation
Deployment
Acceleration
Vision
Realization
2018-2020
2013-2015
2015-2016
2021+
2016-2018
2019-2021
Blockchain: The Evolution
We are here
© 2017 William Mougayar @wmougayar

34. Blockchain Usage Is Here
© 2018 William Mougayar @wmougayar

35. Can the blockchain lead us to a
new world that is better than the
current one?
© 2018 William Mougayar @wmougayar

36. © 2018 William Mougayar @wmougayar
Computation
Protocols
Data
Content
Storage Work
Rewards
EarningSpending
Sharing
Industry
Economy
Law
Finance
Nations
The Blockchain Economy

37. The stone age didn’t end for a
lack of stones.
© 2018 William Mougayar @wmougayar

38. THANK YOU
William Mougayar
Investor, Advisor, Board Member
Managing Partner, JM3 Capital
Author, The Business Blockchain
Founder, The Token Summit and WMX
@wmougayar
wmougayar@gmail.com
http://startupmanagement.org/blog
jm3.capital