What is Tokenization? Are tokens the future of ownership? - The advantage of token-based social networks, and why tokens will disrupt all forms of ownership.

1. WHAT IS
TOKENIZATION
January 2018

2. WHAT IS
TOKENIZATION
INTRODUCTION
HYPOTHESES
USE CASES
CLASSIFICATION

3. INTRODUCTION

4. Thanks to the Duolingo shop, users
get to reward themselves with
Lingots (the in-app currency) that
can be used to buy power-ups or
bonus skills.
Doulingo
Doulingo

5. The dating app gives away ‘coffee
beans’ for logging in again. Beans
function as in-app currency, so
users can buy more match
opportunities or super-likes.
Coffee Meets Bagel
Clutch

6. TOKENS

7. INTRODUCTION
A token is a surrogate equivalent to something of
value. They are much like digital coupons, whose
function can vary.

8. INTRODUCTION
Tokens can entitle you to participate in a
company or in a program, to proof ownership,
or to redeem (a crypto equivalent) of
skymiles.

9. INTRODUCTION
„Crypto Tokens“ exist on top of an established
blockchain and therefore have the same benefits
that cryptocurrencies offer—quick/easy to move
around, privacy, and security.

10. INTRODUCTION
„Crypto Tokens“ get created automatically via
Smart Contracts which are distributed and
immutable once running (tied to a block).

11. INTRODUCTION
• Technically, tokens work similar to paid
private API keys
• Redemption value gives tokens
inherent utility
• Tokens are trade-able/exchangeable
• Tokens can work similarly to royalties

12. Usability
• Exchangeable for other forms of value
Transparency
• Impossible to counterfeit
Cost and speed
• Enable a ‘Smart Economy’ of nano-payments
BENEFITS

13. „Better-than-free“ business model:
Users make money for being early adopters
Using tokens to fundraise (ICO) provides a technically
feasible way for tech companies and open source projects
to spread the wealth and align their userbase behind their
success.
BENEFITS

14. HYPOTHESES

15. TOKENIZATION
COMBINES
ENGAGEMENT TECHNIQUES,
GAMIFICATION, COMMUNITY,
AND CONTENT
1

16. TOKENS
CAN HELP TO OVERCOME
THE BOOTSTRAP PROBLEM
OF DIGITAL SERVICES
2

17. TOKENS ENABLE
NEW BUSINESS MODELS
3

18. TOKENS
ARE EARLY TODAY,
BUT WILL
TRANSFORM TECHNOLOGY
TOMORROW
4

19. USE CASES

20. WIRED
WHAT IS IT
Wysker is a unique inspiration app to
discover new products while earning
Wys Tokens along the way. A Berlin
startup.
Users receive tokens for searching
products on the app. The more intense,
the more tokens accumulate over time.
Tokens can be redeemed at merchants
who are Wysker partners and additional
tokens can be earned by allowing
targeted advertising.
Wysker
WHY IS IT INTERESTING

21. Wys Token model

22. Wys Token model

23. WHAT IS IT
Steemit is a blogging and social
networking website, like Reddit, on top
of the Steem blockchain.
Users get paid through sourcing and up-
voting popular content. The earlier a
person up-votes a post that becomes
popular, the more is the reward. It has a
reputation system, where received votes
can influence the reputation up and
down, incentivizing online etiquette and
interaction with the community.
Steemit
WHY IS IT INTERESTING
Steemit

24. WHAT IS IT
A token framework to be easily launched
by publishers to help monetize content
and grow communities by creating
incentives to encourage engagement.
Smart Media Tokens work like a plugin
that handles wallet and transfer
capabilities. This opens up non-
advertising business models for
publishers and community managers.
Steem „Smart Media
Token“
WHY IS IT INTERESTING
Smart Media Token

25. WHAT IS IT
The platform enables publishers and top
citizen-participants to earn tokens by
creating interesting content. Advertisers
buy tokens to purchase dedicated
headlines.
Offers an "Engagement Search Engine"
to help identify articles with the highest
engagement and to enable „Pay Per
Article“ advertising. Also features AI-
based sentiment analysis to analyze
over online engagements and comments.
Engagement Token
WHY IS IT INTERESTING
Engagement Token

26. Engagement Token

27. WHAT IS IT
Kin is a token for the KIK messenger
platform with 15 million monthly active
users. The main purpose of the token is
to facilitate value transfers such as for
gaming applications.
The Kin Rewards Engine (KRE) is a built-
in incentive mechanism of the Kin
ecosystem, paying out daily rewards to
creators (e.g., developers) based on
usage of their services that utilise Kin.
KIN
WHY IS IT INTERESTING
Smart Media Token

28. WHAT IS IT
Storj Tokens (STORJ) can be used
directly to pay for storage space. Users
can rent out their unused hard drive
space in return for tokens.
storj.io
WHY IS IT INTERESTING
storj.io
A provider of decentralized cloud
storage, where files are encrypted,
shredded into little pieces, and stored
in a decentralized network of computers
around the globe. No one but the user
has a complete copy of a file.

29. WHAT IS IT
WePower is a blockchain-based green
energy trading platform from
Lithuania. It enables green energy
producers to raise capital by issuing
tradable energy tokens.
WePower has both energy tokens
(internal platform tokens) and tokens
that accumulate energy and provide
priority access to the Energy Plant
Auctions, as an asset with a clear value
enhancement mechanism.
WePower
WHY IS IT INTERESTING
Medium

30. Wys Token modelWePower

31. WHAT IS IT
A platform that seeks to demonstrate the
benefits of decentralization to the IoT.
White Goods get registered as a unique
entity on the blockchain for a massive
database of device history, product
revisions, firmware updates, etc.
A washing machine could enter into a
contractual agreement with other
appliances in the home to ‚negotiate‘
over power sharing and to exchange
tokens, saving its owner money.
IBM Adept
WHY IS IT INTERESTING
Computer Weelly

32. Marketplaces between devices
Whitepaper Circle / YouTube

33. CLASSIFICATION

34. A token can fulfill either one, or several of
the following functions:
• A currency, used as a payment system between
participants
• A digital asset (a digital right like land ownership)
• A means for accounting (number of API-calls, volume
of torrent uploads)
• A share (stake) in a company
• A reward for contributors
• Payment for using a system/product/service
CLASSIFICATION

35. Untitled Inc.
Archetypes of tokens

36. Untitled Inc.

37. Untitled Inc.

38. Untitled Inc.

39. Utility tokens
• Serve as a (future) access to a product or service and
can be best compared to a gift card or software
license
Security tokens
• Constitute an investment contract, where the main
use case, and the reason for the contributors to buy
the tokens, is the anticipation of future profits
CLASSIFICATION BY LEGAL STATUS

40. Untitled Inc.

41. Untitled Inc.

42. THANK YOU