Cryptoeconomics is hard...
Economics is hard in general. The reason is that economics studies interactions in a very large group of people and people are not something you can model mathematically very well. But traditional economics works because it studies behaviors in a long-established system which changes very slowly.
The way mainstream economic structures work is a product of years of research, governance, and social dynamics. In some sense you can say it was designed but a better way to look at it is that it was partly designed, partly discovered, and partly evolved on its own.
So cryptoeconomics is harder, precisely because the economics of every single cryptoasset is designed from inception. This includes supply, inflation, rewards, fines, and so on. Essentially, cryptoeconomics of a token is a hybrid between rules programmatically implemented on a blockchain and the entire world of interactions real human beings have with it. Designing good rules necessarily entails understanding the way humans will interact with them.
We are not used to designing economic structures. This is a wholly new territory. This article is an attempt to illustrate some very subtle problems people encounter on this road, often well after fixing them stops being easy or even possible.
In this video, we speak with Aleks Bulkin, a thought-leader in the field of cryptoeconomics and discount tokens, the token model used by Sweetbridge.
Enjoy!
Sources:
https://blog.coinfund.io/can-tokens-s...
https://twitter.com/coinfund_al/statu...
https://blog.coinfund.io/the-quantity...
https://blog.coinfund.io/the-fundamen...
https://blog.coinfund.io/discounts-vs...
https://sweetbridge.com/
https://blog.sweetbridge.com/video-co...