What is Token Economics?


What is token economics?

Token Economics, English is Token Economics; before Token Economics, there is also called Encrypted Economics (Crypto Economics). Token Economics is an extension of crypto economics. Generally speaking, token economics is to achieve a systematic goal through economic incentives. It has two very important aspects, one is the speed of circulation; the other is the liquidity premium.

What are the characteristics of the token economy?

If the blockchain mechanism is a skeleton, token economics is the nerves, muscles and veins that bring life to the blockchain technology. Token economics is the core of maintaining the long-term sustainable development of the blockchain system. It has the following three specific characteristics:

(1) Rooted in the blockchain: Tokens naturally use blockchain technology as an intermediary for value measurement and exchange to work normally. It does not require a trust institution to verify P2P transactions on the network.

(2) Multi-purpose: Tokens are classified into utility tokens and securities tokens. Utility tokens can be used for trading, voting and shares.
(3) Multi-factor driven: According to the different application scenarios, the token economics mechanism can be customized to solve the special situations generated by the application scenarios.


What is the use of token economy?

Using tokens in the real economy can both improve operational efficiency and reduce regulatory costs, as well as reduce unnecessary energy consumption and waste. At present, tokens have related roles in the areas of infrastructure management, energy, waste, water management, corporate management and cooperation, environmental monitoring, and emergency services, education, and medical care.

Token Economics of an economy Imagery


In the book,an expert advocated a beautiful era for the application of the token economy. This book takes the enterprise-side scenario as the starting point, shares the case of the business scenario between the enterprise and the customer, and outputs the corresponding solution guidance to the reader. Xu Mingxing believes that the token economy will make great achievements in terms of credit management, commodity exchange, and value-added preservation. As the token system becomes more complete, the token can also be further promoted to the social end scene, thereby improving the overall token exchange. Proving ecological stability expands scene diversity.






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