Good morning, students!
How are you doing today? It is with great pleasure that I get to present and walk you through our new syllabus - Tokenomy 101. Some background: it's a friendly jab at the term "token economy". Just take a look at https://coinmarketcap.com and you'll understand what I'm talking about. People are actually "working" and living off these tokens. You'll see more than 600 different digital currencies on that website, including coins like DASH, ZCASH, and ZDASH. So it's really the words "token" plus "economy" - "tokenomy". Get it? Lol. Here, take a look at this:-
The image above shows the very basics of tokens like Bitcoin, Ethereum, and STEEM function. Each of them are universes of their own, and a snapshot of all information that defines the contents of the blockchain is called State (S). Its next State (S') is simply transition function (TX) applied on the current State (S). This repeats as we forge our way into the future, one block at a time. TX pretty much involves all activities that happen in State (S), effectively giving rise to the next State (S').
TX pretty much relates to this concept called mining in blockchain technology. For Bitcoin, the mining is some mathematical brute-forcing done by bots. On STEEM, the mining is whatever we do around here posting and voting.
So why care about the tokenomy?
The emergence of this phenomenon is really the beginning of freedom, starting with Bitcoin's genesis of literally freeing up energy for anyone's taking. While it's not a universally perfect token, its energy distribution remains to be a great boon for the growth of other tokens and their users.
“The future is already here – it's just not evenly distributed."
As tokenomy becomes more embedded in our daily lives, it pays to understand the many tokens out there and what they can do for you. We're all bound to be consumers, producers, and prosumers one way or another in the tokenomy so it pays to know what's up. Why is there a buttload of different tokens out there now? Quite simply, the tokenomy is a diversity of activities (TX) and expected end-games (S').
So as a user, know thy token's TXs and their S'es:-
Machinise: Work mechanically in massive groups to transition S into limited outcomes (S'). (Example: Bitcoin's Proof-of-Work)
Humanise: Work humanly in large groups to transition S into a diversity of outcomes (S'). (Example: Ether / STEEM's Proof-of-Stake)
Authorise: Manage energy distribution in small groups to transform S into desired outcomes (S'). (Example: VIVA Crown's Proof-of-Authority)
Embrace the tokenomy and empower yourselves!
I hope the above makes some sense. Keypoint: anyone's free to subscribe to any tokens in the tokenomy. There's no one token to token them all. So choose your tokens wisely and be prepared to put the leg work, hard work, heart work, and some heady work.
Tokenising our way towards great abundance.
It is my desire as Supreme Leader to focus on transforming our S into the best kind of S' in the future. Silly me, but I think a world without war and poverty may be something worthwhile. If I feel like punching someone in the face or launch a missile, maybe I'll just meme-war it out on Steemit instead and get a dollar or two. Indeed, that's what we've been doing for a while now, embracing the tokenomy! You should too.