31 min
EP 18: Token Valuation with Token Bonding Curve Economics Design
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- Technology
⚠️ PSA: This podcast episode is different from the YouTube channel. This removes the maths and graph, as it requires visualisation. Please check out the YouTube version for the graph. Otherwise, this episode is good enough to have you an in-depth explanation. ⚠️
This is a 2-part series. Part 1 is on the economics and math of TBC and how the curve functions affect the incentive mechanism and what governance can we embed into the function. Part 2 will be on using these functions in projects, and taking a dive at a few projects.
The episode is split into 2 because it gets quite heavy to digest all the information at once. So part 1 is the more math-y part, for you, as economics designers to grasp. And part 2 is the more application-y part, for you, as economics designers to know how to use it. After all, knowledge is only valuable when applied.
Enjoy this first part. We understand token bonding curves, the benefits, where the value accrual is derived from and the various functions to consider.
As much as I wish there is 1 perfect function, the functions really depend on the objective of your system and what it wants to incentive or govern. So choose wisely and have fun playing with graphs!
Application to token economics framework: 00:38
What is token bonding curve: 03:53
4 properties of token bonding curve: 07:50
Use-cases: 11:38
Where does value come from: 13:37
Risks and ways to mitigate risks: 18:09
4 math functions: 19:30
How to calculate total cost of tokens: 28:39
Want more in-depth content? Join our Token Economics 201 course at www.education.economicsdesign.com!
⚠️ PSA: This podcast episode is different from the YouTube channel. This removes the maths and graph, as it requires visualisation. Please check out the YouTube version for the graph. Otherwise, this episode is good enough to have you an in-depth explanation. ⚠️
This is a 2-part series. Part 1 is on the economics and math of TBC and how the curve functions affect the incentive mechanism and what governance can we embed into the function. Part 2 will be on using these functions in projects, and taking a dive at a few projects.
The episode is split into 2 because it gets quite heavy to digest all the information at once. So part 1 is the more math-y part, for you, as economics designers to grasp. And part 2 is the more application-y part, for you, as economics designers to know how to use it. After all, knowledge is only valuable when applied.
Enjoy this first part. We understand token bonding curves, the benefits, where the value accrual is derived from and the various functions to consider.
As much as I wish there is 1 perfect function, the functions really depend on the objective of your system and what it wants to incentive or govern. So choose wisely and have fun playing with graphs!
Application to token economics framework: 00:38
What is token bonding curve: 03:53
4 properties of token bonding curve: 07:50
Use-cases: 11:38
Where does value come from: 13:37
Risks and ways to mitigate risks: 18:09
4 math functions: 19:30
How to calculate total cost of tokens: 28:39
Want more in-depth content? Join our Token Economics 201 course at www.education.economicsdesign.com!
31 min