22. The Cryptoeconomics of Token Design
While a cryptocurrency is originally invented as part of the blockchain consensus mechanism, subsequent developments have proven that the cryptocurrency is critical for driving blockchains’ adoption. A blockchain ecosystem’s network effect depends strongly on the cryptocurrency design, which incentivizes how contributors and consumers interact with each other on the network.
In this chapter, I will discuss cryptocurrency (token) designs, known as cryptoeconomics. By understanding cryptoeconomics, you will gain a better understanding of exactly what types of applications are suited for blockchains.
There are three broad categories of cryptocurrencies (tokens): network utility tokens, application utility ...
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