Author: Ye Kai

A pioneer in Token economy system design.

Partner of Matrix Digital Economy Think Tank, executive Director of Linda Holdings (1041HK), managing partner of CAU Puhui Financial Services, adjunct professor of Nanjing University. Focusing on the upgrading of traditional industries, industrial finance and blockchain, he has written social Media Operation, Fan Economy, O2O Practice and other related books.

Exclusive interview with Token economic design expert Ye Kai: Token Design Canvas and 10 design patterns

This leaves open the teacher to share Token 10 design patterns, including content mode, service mode, fan model, storage model, special model, and the realization of the Token model | Token financial and governance.

1

Content patterns for Token’s top 10 design patterns

Token of content mode is a distributed ledger and monetization centering on content creation, intellectual copyright and artwork. Through Token, content and copyright are monetized to realize content authenticity and copyright traceability, and create consensus value of creators, critics, curators, collectors and other industries.

Token of content mode is suitable for cultural and art enterprises, such as content community, knowledge copyright, culture and art category, video streaming media and image copyright enterprises, etc., which are built around content authenticity, copyright traceability and consensus value.

1.1 Summary Definition

The Token essence of content mode is content monetization. Because content is divided into different types, such as community content, intellectual copyright, artwork and digital media copyright, the monetization process is different. First of all, content should be digitized, community content, knowledge copyright and digital media are already digital forms, and artworks need to be digitized and anti-counterfeiting traceability with the help of Internet of Things technology, such as nano anti-counterfeiting, content fingerprint identification and visual identification technology. Secondly, the initial Trust value that allows creators to monetize the content is a value based on digital Trust and reputation, and other curators, critics, collectors, institutions, etc., are trusted to evaluate and praise the value, forming a consensus reputation value; At the same time, through an industry-consensus transparency agreement, the source of content, transaction records and collection ownership history can be anonymously traced on the chain and distributed ledger, which can assist in identifying the authenticity of content, and can form a credible value agreement with a timeline.

For digital media in the form of digital, such as pictures and streaming media, in addition to monetizing the content on the chain, it should also be stored in a shared mode such as IPFS to provide token incentives for users’ likes, comments or recommendations on the content. Meanwhile, it can be used with special mining machines (special media devices or media APPS) for on-demand viewing. Or choose to license digital media content and settle content tokens in real time.

For content with relatively high value, such as art, art blockchain is to create a monetized art creation, evaluation, transaction collection and sharing ecosystem, and realize the appreciation of art Token and art Coin. In addition to the creative work of the house of monetization, and at the same time made on anti-counterfeiting labels such as nanotechnology chain, and museum curators and auction houses such as concentrated or anonymous synchronous collection and transaction records, combined with creative home, collectors, and critics, investors, users set up a digital trusted system, realizes the industry community autonomy self supervision, audit, evaluation and complaints mechanism. At the same time, the price discovery of works of art, the trading margin of the auction can be improved through art tokens.

1.2 Business Model

The biggest value of content mode Token is that the creativity and creation of content are priceless, which can bring infinite value space to content mode Token, which is completely different from the asset mode Token corresponding to physical assets.

Digital content, such as community content, intellectual property rights and digital media, is initially digitized and can establish a uniquely identifiable ID or tracking technology. The key is to monetize the value of content creation and plan value promotion activities to form a value consensus. The creation value of digital content comes from the creator’s initial pricing or the suggested fair value of digital content assets trading platform.

The use and dissemination of digital content assets can be tracked. For example, the viewing of digital media content can be realized by video-streaming media on demand and storage sharing IPFS storage. The copyright of digital content can be tracked and discovered through network technology, visual recognition, AI and other technologies and authorized service fees.

Traditional content creation, such as works of art, etc need to use the Internet of things technology, first of all, digital and anti-counterfeiting, such as the use of nano anti-counterfeiting, fingerprint identification and visual identification, such as technology, at the same time as the creator in digital empowerment, and in the art of originally, on the basis of market value, additional digital content assets trust value.

Creators give monetized initial trust value to the content they create, which is a kind of industry trust to creators. Long-established creators may have a higher value, while young and emerging creators may have a lower value. However, with the creation content in the curation, transaction and auction process, As other curators, critics, collectors, auction houses or museum institutions, etc., assign the Trust value of comments and likes, the consensus reputation value can be gradually increased, which becomes the digital Trust and reputation value of digital content assets.

Digital credibility and reputation value from the content industry’s participation, participating nodes around the content with their own reputation on the value of the critique or thumb up behavior, the behavior of digital content assets increase in value, and access to content “, also created a “content – content recommendation – content curators – content consumption” of the industry chain.

In addition to monetize digital reputation value, the market value of digital content assets also needs to digitize, the original is one of the traditional collection, trading and auction market behavior to form a market value, you can now through the transparency of consensus agreement in an industry, the origin of the content, trading records and collection belong to history can be anonymous on chain and distributed books, It can not only assist in identifying the authenticity of content, but also form a trusted value agreement with time axis.

In the end, the value of digital content assets comes from the superposition of the timeline value and reputation value of the transaction market. Digital content asset tokens are monetized through content Coin and incentive mechanism is established. Meanwhile, they serve as the auction transaction margin and liquidity smart contract repurchase of digital content assets.

1.3 design

1.3.1 Strategic Positioning

In a word: “Make creators’ content and reputation truly valuable”

The core goal of content model Token is to monetize creators’ content and reputation directly, rather than relying on the content intermediary trading market. At the same time, digital content asset Token can encourage the content industry to participate in the value consensus and establish a benign ecology.

1.3.2 Customer segmentation

One person: Creative and talented content creator

Content mode Token target audience is the creator, so that the creator can independently release digital content assets and assign initial value. At the same time, reviewers, collectors, curators, auction and exhibition institutions in the content industry are also among the audiences of content mode Token. The value consensus and distributed transparent agreement of the industry all need participation and encouragement.

1.3.3 Entrance Scenario

A picture: Content mode Token’s main scenario is the reputation evaluation of digital content assets. Because the value added and reputation value of digital content assets come from the recognition, comments and likes of different nodes in the content industry, only part of them come from transactions or auctions, but the value of digital credibility and reputation is more sustainable and long-term.

Through a transparent and distributed reputation evaluation and incentive mechanism, enabling more people to endorse and increase the value of reputation, especially professional critics and collectors, professional institutions, exhibition halls or museums, can better add value to digital content assets.

1.3.4. Asset value

One number: The asset value of content mode Token is mainly the consensus value of content creation, which includes the market value, reputation value and timeline value of content itself. Setting a price on a work of art is both simple and complex, and the value of content assets fluctuates with reputation and time.

Content mode Token should add intangible values such as creativity, design and culture to content assets on the basis of the market value of the created content, increase the overall value of digital content assets through priceless creativity and art, and form a bullish expected trend.

1.3.5 Consensus algorithm

A consensus: The consensus for digital content assets is the content industry’s transparency agreement, a reputational value agreement with a timeline, PoTt (Trust+ Time).

The art market will start with the cultivation and market operation of the works of young painters, and after a period of time, it will finally realize the substantial appreciation of the creative content. The same is true for digital content assets. It is necessary to enhance the value of digital content tokens based on the joint participation and value consensus of the content industry. PoTt is similar to PoS because it is supported by the various content industry nodes.

1.3.6 Structure governance

A set of governance: The structure of digital content assets is different from other models. It is to monetize and structure the priceless creative or artistic value, and this structuring process is to form the final digital trusted value through the joint participation of the nodes of the content industry.

Content mode Token can adopt dual currency system, that is, the combination mode of “Token+Coin”. One content asset Token and one content Token Coin are established. Token is the ownership or earnings right of content asset, and Coin is the anchor Token for payment settlement, fees and pricing of content asset. It can also be designed as stable-currency anchored fiat currency.

The design of content mode Token is based on the market value of content creation, with additional digital credibility and reputation value. The structure and proportion of the two need to be reasonably designed according to different types and fields of content creation. For example, the added value of community content is not too high, the added value of art category can be relatively high, and the creative design attached to valuable assets (jewelry, jade, etc.) can be relatively high.

Content mode Token allocation ratio should fully consider the content industry’s participation nodes, and design incentive mechanism to encourage their active participation. Museums, galleries or auction houses can be attracted as strategic partners, and the value of content mode tokens can be increased rhythmatically through smart contracts such as lock-in or buyback.

1.3.7 Economic model

One model: An economic model of a content model asset, derived from two sources:

• One is the market value of tangible assets, or content,

• One is intangibles, the priceless value of the creative arts.

Since content creation is limited and has a time cycle, and intangible value comes from content industry consensus, the economic model of content model assets is also combined with supply theory and game theory.

The total amount of content mode tokens should be determined in combination with creators and time cycle. The total number of coins issued, combined with the total number and value of tokens, as well as evaluating the liquidity of the market, is ultimately determined, which often cannot set a fixed hard top.

The key to the economic model of Token is to establish a creator-centered content financial model. The liquidity of content assets can be realized through digital currency exchange or digital asset trading market of content industry. At the same time, derivatives of content assets can be designed for trading. The platform can increase the value of Token and Coin by lock-in, repurchase and sharing proceeds in the capital pool.

1.3.8 Mode Operation

A set of operations: The operation of content mode assets should take root in the content industry, especially investors, trading markets or curatorial agencies similar to the art industry. These are the industrial foundation, and a group of continuous and high-quality industrial investors often come from here.

The content assets of digital content should be combined with community and community, and at the same time, big data and AI technology should be fully utilized as it is spread and curated on the Internet.

Although community content and digital media content assets and traditional art content assets are both content creation, they have different industries, values and forms. Therefore, the talent, operation mode and community operation of the operation team have different emphases, which need to be differentiated according to specific industrial conditions.

1.4 elements

** Purpose needs: ** monetize creators’ content;

** Applicability: ** is suitable for cultural creation industry, content creation, digital media such as photography and video, as well as traditional art creation, with creation, publicity, curation and trading scenes;

Effect: Content works become digital content asset tokens that can be monetized or tokenized and motivate everyone in the content industry to participate;

** Realization: ** Realization of content asset Token chain through alliance chain. Security and authenticity identification of content asset of art category need to be considered;

** related modes: ** is combined with currency mode, and may be combined with traceability mode;

1.5 Token Case: FRIENDZ

Friendz is a tool platform that uses social network users for marketing purposes. Users are rewarded for creating content for brands and sharing it on their personal social networking profiles. Client companies buy marketing services from Friendz, which lets users create content for those companies. Users share content on their social networking profiles and are rewarded with virtual currency. Skilled Web users, known as approvers, review each content before Posting it. Users and approvers can spend their rewards to get gift cards and coupons, or purchase directly from the Friendz online store.

Friendz is enabling distributed online marketing, elevating end users to a central location where they can profit from the digital advertising process. Unlike well-known influencers, users typically do not receive rewards through the advertising process, even if they share brand posts on social networks and interact with official company pages. Friendz allows users to make money online in a democratic way, depending on their skills and influence.

Friendz introduced a revolutionary marketing concept that harnessed the power of peer-to-peer communication and word of mouth on social networks. Friendz users are not one influencer with a large audience, but ordinary people who use social networks every day, and thus may reach the same number of viewers, but made up of thousands of micro-influencers with close relationships. In this way, advertising information shared on their profile reaches their friends in a real and natural way, and is much more effective.

The Friendz Token (FDZ) is an Ethereum-based ERC20 token. Customers and multinational companies can purchase marketing services and enjoy discounts on the Friendz token through the platform. Users will be able to use the app to get tokens and spend them on special features in the app to increase their engagement with the Friendz token. Riendz users see coins as the foundation and part of Friendz’s “game.” Using your own Token can increase community engagement and enjoy the user’s platform. Customers will have unique tools to purchase global marketing services and view Friendz as a media channel to engage and reward the community on social media.

LamTex canvas analysis

2

10 Service patterns for Token design Patterns

Token of service mode is a distributed service contract, which realizes intelligent matching and intelligent contract between service demanders and providers. Through digitalization of service contract and tokenization of payment and settlement, a decentralized sharing economy ecology with incentive mechanism and Token appreciation is realized.

Token of service mode is suitable for the service industry of on-demand call, such as takeout, homemaking, elderly care, real estate intermediary service, after-sale door-to-door service, agriculture, agro-technology, agro-chemical service, freelancer professional service and other traditional industries, which is a typical sharing economy.

2.1 Summary Definition

The Token of service mode is a distributed service that makes intelligent matching of digital service contract based on the trust of strangers, and monetizes service contract and trusted value to form a service economic ecology.

First, solve the trust problem of unfamiliar service demanders and service providers through digital trust; Secondly, the digitalization of service objects, the digitalization of service demand and behavior of service objects is very key, and such services are often combined with a lifestyle, which is the core basis of value consensus. Then, service providers also need to be digitized, and their basic attributes, service capabilities, qualifications, service experience and trusted value are all key elements in service contracts. The intelligent matching engine has a built-in intelligent contract to match both sides of the qualified service contract and initiate a trusted tracking; Finally, the demander or the third party will conduct feedback evaluation to give feedback rating to the service provider, and motivate the service provider and evaluation feedback through incentive mechanism. If there is a service contract standard that does not meet or there is a service complaint, the punishment mechanism will be started to form an ecological closed loop.

Token of service mode, a digital trusted value to bear in the process of service contract, to provide a carrier for the trust, digitalization and differentiation of service parties; The third is to carry the payment settlement and incentive mechanism to realize the payment settlement, praise and reward, incentive and punishment functions of the service contract.

The final value consensus is reflected in the lifestyle corresponding to the service contract. Both parties of the service contract and the third-party platform pursue the lifestyle. The monetization of such common pursuit is used to continuously motivate and promote the service contract to realize it, and also continuously strengthen the trust between strangers.

2.2 Business Model

The core of service mode is an intelligent matching of service contract, which is based on a specific lifestyle or service demand, digital service demand and service provision of intelligent matching scene. Therefore, the Token core of the service mode is the service contract, and the intelligent matching of the service contract, the first thing to solve is the trust between strangers, which is the core problem to be solved by the block chain of the service mode.

Service mode Token firstly digitizes the service requirements of a certain lifestyle, such as time, place, service object, service content and service requirements, through the Internet of Things technology, face recognition, semantic recognition, big data, image recognition and other technologies. Then service providers are digitized, such as population attributes, service capabilities, service qualifications, service experience, evaluation feedback, etc. On this basis for intelligent matching.

Because of the consensus of lifestyle values, services need to be classified, there are certain service level agreements (SLAs), for example, what is the level A service standard and what is the response time? What is the level B service standard and what is the response time? What is the standard of VIP service? These are a way of life or values under the consensus of service standards.

Service mode Token monetizes service contracts and trusted value based on service standards and digitization. When service demanders initiate service calls, they need to reserve higher-level services with tokens. When the service provider answers the service call, it needs to verify and filter whether the service contract requirements are met. The whole process of service contract is realized through Internet of Things technology, DApp or smart wearable devices, etc., and the service process is visualized, and the chain is connected through smart devices.

The service contract is based on the set smart contract to carry out intelligent payment and settlement with tokens, and motivate both sides of the service contract to conduct two-way evaluation, give feedback rating to the service capability of service providers, evaluate the demand status and difficulty degree of service demanders, and motivate both sides of the service contract through service tokens. Punish those who violate the service contract or join the blacklist.

Due to service contracts is the service between strangers, so the service contract mechanism is to establish trust strangers, it is also a consensus value, service demand the consensus of value often corresponds to a way of life, so the service contract trying to solve not a service call, but to create a better way of life.

2.3 design

2.3.1 Strategic positioning

In a word: “Serve the good life”

Service mode The positioning of Token is to provide better intelligent matching services and make life better. Whether it is life takeout service, home care service, professional service call, etc., they are all service contracts centering on the value consensus of a better life. Service mode Token makes service better in digital service contracts, intelligent matching and monetization incentives.

2.3.2 Customer segmentation

One person: service demander and service provider

The target audience of service mode Token is mainly service demander and service provider, because they are the main object of service contract. At the same time, there are third-party institutions or platforms on the basis of intelligent matching, such as intelligent equipment or third parties that detect and digitize the needs and status of service demanders, train the service ability of service providers, supervise the service level, and return visit the service satisfaction of third-party institutions.

Service mode Token also needs to be subdivided on the basis of service demanders or service providers, classification of demand, classification of service provision, to achieve the differentiation of service contracts, so that service mode Token can be truly meticulous to achieve accurate service ecosystem.

2.3.3 Entrance Scenario

One picture: The main scenario for service pattern tokens is the service reservation and delivery scenario, which is the core process of the service contract. Service reservation needs to digitize the service demand of the service demander, and the service provider also needs to digitize, and then realize the intelligent matching of service contract.

In service reservation and delivery scenarios, service DApp, smart devices or Internet of Things technology may be needed to digitize and visualize services, and key data such as time, place and service process can be automatically collected, so as to realize the chain and monetization of service contracts.

2.3.4 Asset value

A number: the Token of service mode reflects a lifestyle, its asset value comes from the digital credibility of services, and these service consensus is the basis for establishing a lifestyle index. For example, the pursuit of high-quality lifestyle, the need for meticulous care for the elderly, and the demand for high-level professional services are the key to service contracts, and also the value of service model Token.

The growth of Token value in service mode comes from the demand for high-level service contracts. Because both the demand for high-quality service and the provision of service are limited by human factors, the demand for high-level service contracts will tend to increase in a deflationary state.

2.3.5 Consensus algorithm

A consensus: The consensus of service model Token is the consensus of service demanders and service providers on lifestyle. This consensus reflects the pursuit of a better life or professional service. Therefore, it needs standards, differentiation, incentive mechanism and systematic platform.

The service mode is generally in a service industry, such as pension, nursing, takeout, brokerage service, and free consultant, etc. This service consensus needs to be formed within the industry around the service. The industrial platform will have a third-party organization to provide standardized training, guidance, management, supervision and other functional services.

Token consensus of service mode comes from service contract. Its algorithm is equivalent to workload confirmation of service contract and two-way evaluation vote of service contract. Therefore, it is a consensus algorithm between PoW and PoS.

2.3.6 Structure governance

One set of governance: the Token structure of the service mode will be dominated by the service Token Coin to realize the payment settlement, service fee and handling fee of the service contract; Whether service contracts are designed with service tokens depends on specific industrial scenarios. Some only focus on contract matching, so service tokens are not needed to be designed; others pay more attention to the differentiation and classification of service contracts, so service tokens are very necessary.

Service mode Token is generally designed and operated from the perspective of an industrial service platform. Therefore, the structure should consider the resource design of the service platform, such as third-party services. At the same time, the distribution ratio should be inclined to the core part of the service contract mining of the service provider. For the service organization or enterprise of the service provider, it can attract partners or nodes.

In the process of service contract, smart contract is used to lock the token required by the service and automatically pay after delivery and rating; The repurchase of liquidity contracts or profit sharing of capital pools around service tokens or service tokens is a measure to reward users and investors.

2.3.7 Economic model

The economic model of Token is a service operation model, which is influenced by the scale of service demand and service capacity supply, as well as service level agreements and incentive mechanisms. In a certain period of time, the supply of service mode Token is limited. It can only meet part of the service demand, but cannot meet the service demand indefinitely.

Service mode Token should analyze the market size and supply of its industry and service demand, and conduct in-depth digital analysis such as demand classification and service capability level, and finally determine the total supply scale and value of service Token.

The promotion mechanism of service capability level should be established in the service ecosystem mechanism, and service capability and satisfaction should be encouraged by service token. Meanwhile, service contract should be standardized by liquidity contract and isolation mechanism.

2.3.8 Mode Operation

One set of operations: Service mode The operation of Token is for people. Service demanders are consumer communities, service providers are industrial communities or individual communities of the industry, and service platforms or third-party organizations are investors or participating enterprises of the industry. All these need to be operated.

The service model pursues a LifeStyle, so IP campaigns around social media, community and LifeStyle are key. Consumers are not booking a high level of service, but to fulfill the needs of this good lifestyle.

Service mode operation can also establish a service Token file for service demanders, and turn the service contract on the timeline into a digital file, presenting a process that tends to a better lifestyle, and more reflecting the value of service mode Token.

2.4 elements

Purpose needs: make the service more beautiful, intelligent matching service contract;

** Applicability: ** is suitable for the huge service industry, especially the industry with a slightly higher customer unit price and integrity verification;

Necessity: Establish trust between strangers through the chain of service contracts, and then motivate them through service tokens;

Effect: Make service more intelligent, differentiated and precise, and encourage mechanism to form a benign service ecology;

** Realization: ** The key lies in the intelligent matching engine of service contract, its matching performance and value is very important, and how to attract more service demand and providers to participate in the ecological mechanism;

Related mode: it can be combined with currency mode. Some scenes can be combined with mining machine mode of smart wearable device and integral mode.

2.5 Token case: LanceChain

LanceChain is a platform for freelancers and project managers to conduct employment transactions using LANC currency. Freelancers can get secure job offers without paying agency commissions, create their own work teams, and have independent equity subject matter experts evaluate the work and ensure that payments arrive safely in the account.

LANC currency is a virtual currency issued by ethereum platform that complies with ERC-20 standard. The LanceChain platform accepts automatic conversion of Bitcoin, Ethereum, fiat currency and LANC currency. LANC currency holders have the right to elect independent subject matter experts who can earn additional income through talent identification programs or dispute resolution.

Lancechain solves the problem of a fragmented market for freelancers, with intermediaries charging commissions. There is no censorship to ensure that freelancers get the most honest reviews, achievements and account rankings, and that freelancers can successfully receive commissions.

LamTex canvas analysis

3

Fan mode of Token’s top 10 design patterns

The Token of fan mode is to build the idol of entertainment economy or IP Internet celebrity into a Token of entertainment chain, and further derive the commodity, content, reward, service, rights and interests, ticketing and other scenes to form a distributed entertainment value agreement.

The Token of fan mode is especially suitable for entertainment economy industries, such as star idol industry, brokerage companies, entertainment and performing arts companies, as well as large IP digital media companies, Internet celebrity studios and other enterprises.

3.1 Profile Definition

The Token of fan mode is to solve the consensus and value agreement between idol and fans in the entertainment economy. Take IP or idol as digital assets, let fans and users consume and invest, form an idol index, and build an idol economic model around idol assets and derivative services.

Fan pattern Token hope will give fans and users, the initiative and control directly to establish communication between the users and fans idol star or IP interactive, trust and consensus, rather than by the phenomenon of brokerage firm, commercial activities and various interests isolation, through a unified platform for the entertainment industry to build an idol fans community service.

On blockchain, IP is no longer characters and idols, but digital IP and idol Token based on characters and idols. The consumption tokens derived from the Token based on the fan mode, such as goods, content, services, rights and interests, all correspond to the appeals and wishes of the fan users. Fans can use Token to vote for an idol, can subscribe to own idol video or digital media content, can consume derivatives, can buy a idol performance ticket, can make an appointment to the interactive time, fans can enjoy the enjoyment of rights and interests, etc., can even for the idol play list, create a support digital images, The higher the idol score, the more revenue will be shared.

Fan tokens can be used for payment and settlement, as well as the sharing of idol’s income, which can effectively make the distribution of benefits transparent and intelligent contract, and can be traded, exchanged and derivative services through the fan trading market, so that fans can enjoy the consumption and investment of idol economy.

3.2 Service Mode

The Token of fan mode is a distributed entertainment value agreement, which allows fans to consume and invest independently. It is equivalent to value and monetize the idol of the entertainment industry, and monetize IP and derivatives.

The idol star economy in the cultural and entertainment industry itself has a strong community base, such as fan groups and other forms. However, the former fans tend to be passive and information asymmetry, and it is difficult to have direct communication and interaction channels with the idol stars. The fan model Token is to give fans the opportunity to go to the intermediary, direct consumption or investment idol star Token.

The core of IP in cultural entertainment industry is not characters and idols, but the digital IP created by characters and idols, especially the fan mode Token of blockchain mode. It can be a long-established idol star or an immature young star, all of which can become an investment Token for fans.

Consumption tokens derived from IP tokens in fan mode include related derivative products, digital content or digital media, exclusive fan group services, special rights and interests of the IP, which are directly related to the appeals and wishes of fan users. Fan users use fan tokens to monetize their appeals and wrongs.

In fan mode Token, fans can consume or invest in derivatives such as performance tickets, time, interaction and signature photos of idol stars. The more fans support and the more fans reward with tokens, the more valuable the fan mode Token will be. Even some Token content and services can be initiated by fans using fan tokens to vote and bet.

Exclusive media content or copyrighted content of idol stars can be used through exclusive fan mode mining machine or media playback and storage sharing of video stream. Fan tokens can be consumed and the list can be topped by fan tokens. At the same time, fan tokens can be used for payment and settlement of various transactions and services in fan mode, as well as dividends from investment in tokens of an idol star. In addition, fans’ support for idol stars can be made transparent and all of them can be monetized with tokens.

The tickets of performance activities can be connected with the idol model activities and fans with the cryptographic anti-counterfeiting tickets of blockchain, and the loyalty of fans can be reward with fan tokens, which can effectively reduce the ticket printing and anti-counterfeiting costs of performance activities companies.

Fan model tokens need to establish a trading market in the entertainment industry to trade and exchange fan tokens and derivatives. Fans’ Token rewards, idol star Token bonus pool, etc., can be used to form a bullish expectation of fan mode Token with liquidity contract, and let each fan share the revenue of fan mode Token.

3.3 design

3.3.1 Strategic positioning

In a word: “Let the fans invest in their idols”

The core goal of fan model Token is to make fans become masters. They can invest in idol stars, consume idol model derivatives, reward and support idol stars, interact directly face to face, and monetize all with fan tokens.

3.3.2 Customer segmentation

One person: fans

Fan mode Token’s target audience is mainly fans, because fans should become the core of the entertainment industry; Of course, idol stars and agents, the traditional core of the entertainment industry, are also the target groups that the fan model focuses on.

Idol star will be the second target audience, he is the main body of fan mode Token, all his digitalization and capitalization will become a fan mode Token, fans to reward, reservation, consumption and investment.

3.3.3 Entrance Scenario

A picture: The core scene of fan mode Token is the consumption and reward scene of fans. Fans can use their fan tokens to consume performance tickets, time, services and derivatives of idol star Token, support their idol stars with Token reward, or invest in the equity products of idol star Token with Token.

Idol star tokens need to standardize rights and service products, from performance activities, fan interaction, exclusive services, special rights, signature photos and copyrighted content and other derivatives, digitalization and monetization. It is also possible to package idol star tokens into an equity product, allowing fans to invest and share the proceeds from the Token’s bonus pool.

3.3.4 Asset value

One number: The Token value of fan mode comes from the support of fans, namely the idol index.

The idol index doesn’t vote with feet, it’s fans voting with tokens. The higher the idol index, the higher the support of fans, the higher the consumption and investment in idol products and services or derivatives, which means the higher the value of the fan model Token.

Fan model platform will generally provide fan model Token platform services for different idol models or combinations. It can design more derivative services between mature assets with high idol index and newly developed assets with low idol index, such as options, indexes and other designs, so that fans can vote and bet for the future of idols.

3.3.5 Consensus algorithm

A consensus: Fan model the value of the Token from the fans of the idol star consensus, so this is a fan of group formation value consensus, it through the agreement to form a distributed entertainment, the entertainment industry, from the fan service, content on demand, ticketing and entertainment show different content, such as derivatives by powerful distributed books, To promote the transparent behavior analysis of fans, so as to form the fan value consensus (PoF) of idols.

Fan mode Token is an asset related to “people” or “IP”, so PoF consensus is similar to PoS, where fans use tokens to gain voting rights to form consensus.

3.3.6 Structure governance

A set of governance: The structure design of fan mode Token will be a combination of “Token+Coin”. Token is the asset Token of idol star, and Coin is the fan Token. The fan mode Token is associated with the data of the idol star and the idol index, while the fan Token is associated with the support of the fans.

In fan mode, the distribution ratio of tokens will take into account platforms, idol stars and fans. Idol stars are the key, as they are the basic assets of tokens, followed by fans for consumption and investment. Idol stars do not need to consume or invest after the asset packaging on the chain, but only need to operate products and services; Fans need to mine fans through rewards, consumption, completing tasks, etc., to obtain more fan tokens, so as to continue to consume or invest in idol star tokens.

3.3.7 Economic model

A model: fan pattern Token economic model is a trends associated with fans enthusiasm, so should not only consider the idol star Token associated with asset model of services sold derivatives products, also want to consider the support of fans and idol index, index of the idol is higher, its economy is twice as large as the idol star value dimension.

In terms of liquidity, mechanisms such as lock-in mechanism and repurchase and appreciation contract of Token bonus pool should be carried out for the income of idol star teams to ensure that the value of fans is constantly rising.

Mobilize is fanatical fans, so incentive mechanism must carry on the careful design, from the earlier to the early bird programme, and recommend friends to join recommended awards, fans vote to promote interaction in the bounty program, etc., and set up the image ambassador model of incentive and specific rights such as meeting, let the fans enthusiastic participation in, lift fan model of ecological economy.

3.3.8 Mode Operation

One set of operation: the operation of the fan mode is consistent with the operation of the fan group in the entertainment industry, because the investors are mainly fans, which is equivalent to creating an investor community in the entertainment industry based on the fan group.

If the operation team has experience in entertainment industry or fan group operation, it is better to be familiar with the needs and behavior characteristics of fans, and to organize the fan group to realize digitalization and tokenization upgrade. However, in the initial stage of operation, idol stars with platforms and deep participation are the most critical, because the design should be packaged as the Token of the initial model, and the whole fan mode cannot be started without the initial idol stars. This means transforming and empowering with a team of iconic stars.

After the Token is tokenized by idol stars, the fan model Token can provide unprecedented high-quality entertainment services or direct channels for fans, making fans Token become digital currency of entertainment economy, while the imtamable distributed cryptographic ledger is conducive to structured incentives and safe and reliable payment and settlement. To build a blockchain-based asset delivery platform for idol stars, which is the core direction of fan mode operation.

3.4 elements

** Purpose demand: ** allows fans to interact, consume and invest directly with their idol stars;

** Applicability: ** suitable for entertainment industry, star team;

** Necessity: ** disintermediation, allowing fans to interact directly with and invest in the idol model, and monetization of the idol index through a transparent and powerful distributed ledger;

** Effect: ** stimulate the enthusiasm of fans, but also to avoid unreasonable behavior caused by fanaticism of fans;

** Realization: the realization of Token in ** fan mode can choose the alliance chain based on industrial nodes or entertainment teams or the public chain based on fans’ consumers. It can also choose the alliance chain in the initial stage and realize the public chain of fans in the future.

Related mode: combined with currency mode, some scenes can be combined with mining machine mode and content mode;

3.5 Token Case: TokenStars Team

TokenStars is a blockchain platform that tokenizes celebrities. Its goal is to disrupt the star agency industry by distributing and providing potential star funding and promotional resources. Through a blockchain celebrity management platform that utilizes distributed scouting and intra-organization voting mechanisms to ensure the transparent participation of millions of users: celebrities + fans + brands + advertisers, thus forming the core scenarios: Buy ACE tokens and support celebrities → use tokens to receive special offers from celebrities and participate in their achievements → be a part of the growth of the ACE platform.

TokenStars aims at three audiences: traditional blockchain audiences, institutional investors, funds and family offices (as the company’s management comes from finance), and sports fans (including fan communities through multiple sports media partnerships).

ACE tokens are product tokens that offer unique opportunities, such as hours of practice with players, meetings, tickets, commercials with stars, and more. These services are purchased with tokens. The more often tokens are used, the better for all participants. The agency’s commissions will be converted into tokens and the commissions collected will grow, and the agency will need to stimulate the economic system by buying tokens from the market. At the same time, ACE tokens play a key role in the ACE ecosystem because they provide voting rights in a distributed organizational voting mechanism, giving ACE holders the opportunity to vote on various decisions that influence the success of the platform. Moreover, it is also the basic unit of accounting and the payment method of various specialists, especially talent scouts, promoters and advertisers.

The celebrity management platform of TokenStars includes twelve modules: talent support module, STAR ICO module, star scout module voting module, betting module, bounty fan club module, fan communication module, competition and charity module, smart contract module, brand relations module, e-commerce module and so on.

LamTex canvas analysis

4

10 design patterns for Token storage

Token in storage mode uses idle bandwidth and storage space sharing to realize distributed storage and bandwidth sharing, and contributes to people or organizations in need to obtain tokens from the other party. In this way, a sharing economy application scenario that combines storage and bandwidth is realized.

Token in storage mode is suitable for memory, router, intelligent hardware, bandwidth, computing and other related enterprises. This pattern is commonly known as IPFS (interplanetary file System) and FileCoin (file currency).

4.1 Summary Definition

Token in storage mode is a typical sharing economy, which can share bandwidth or storage to achieve distributed security and stability. Based on such sharing and security and stability, corresponding tokens or coins are incentivized.

Distributed storage network, IPFS protocol, is InterPlanetary File System. IPFS is like a huge network of stars scattered in the vast Internet universe. Each star represents a node, forming a huge IPFS network. IPFS is based on the block chain, permanent ways to store and share files, decentralization, is a peer-to-peer distributed protocol, build a peer-to-peer network topology, equivalent to overturn the HTTP represented by the distribution relationship, it has the characteristics of content addressable by file content, producing only a hash identifier, thus saving the space overhead costs. FileCoin (file currency), which implements distributed storage of files through proof of replication (PoR) and proof of space (PoSt).

4.2 Service Mode

Distributed storage and bandwidth sharing, when they exist alone, the business model is relatively simple, which is the incentive of distributed storage and sharing of files. Or the benefits of bandwidth sharing. But file storage, if combined with the time dimension, can form a timeline value, and this distributed timeline value can be designed into some scene patterns to meet the specific needs of consumers.

As a basic function, the storage mode can be combined with the tokens of other modes. For example, when combined with the tokens of the content mode, the content can be monetized and distributed stored. For example, in combination with the Token of fan mode, distributed bandwidth and storage sharing can be utilized on the exclusive media player of fans.

4.3 design

4.3.1 Strategic positioning

In a word: “Share everything”

Storage space, bandwidth, or other resources can be shared with blockchain to create greater value, and even greater stability and security can be achieved through distribution.

4.3.2 Customer segmentation

One person: a person who has a computer and is willing to share space and bandwidth resources

Such people need to have the spirit of sharing and participation, not just investors.

4.3.3 Entrance Scenario

** A picture: The main scenario of storage mode is sharing, sharing idle resources such as hard disks or bandwidth, generating value for sharing and motivation. ** Sharing methods and mechanisms can be tailored to meet the needs of some business smart design, For example, decentralized content publishing platforms, file sharing systems between friends, video sharing sites that use IPFS as storage, wikis built on IPFS, search engines based on IPFS, file sharing based on IPFS, image sharing sites based on IPFS, and distributed chat tools.

4.3.4 Asset value

A number: The asset value of the storage mode is the amount of storage.

In the storage mode, the incentive system of FileCoin is used to motivate people to make nodes. PCS are used as nodes to mine, share the storage and receive FileCoin tokens. At the same time, the ratio of storage to storage can be converted into miners’ voting rights.

4.3.5 Consensus algorithm

Consensus: The storage model uses a proof of storage (PoSt), similar to PoS proof of interest.

The consensus mechanism of IPFS is storage proof. Simply put, it means that miners have finished the file storage, and consensus can only be reached when verifying that miners have actually completed the file storage, so as to prevent dishonest miners from actually storing data smaller than the claimed data storage. And the ratio of miners’ current stored data in the network to the storage of the entire network is converted into miners’ voting rights. Since the filecoin-based percentage is converted to voting rights, it is very similar to PoS proof of interest.

4.3.6 Mode Operation

** One set of operations: The community operation of the storage model is critical due to the large number of individual node sharing participation. ** Storage mode may launch mining machines or mining apps, which need to be operated and promoted; The IPFS main network is not yet online and is still selling mining machines.

4.4 elements

** Purpose requirements: ** Share storage and bandwidth resources of personal computers, and get FileCoin incentive of storage token;

** Applicability: ** Distributed storage or bandwidth sharing, suitable for extending more application scenarios based on this;

** Necessity: ** It is necessary to challenge the HTTP protocol and it is perfectly integrated with blockchain technology;

** Effects: ** has not been widely used yet, but there are some small effects.

** Implementation: ** Need to pay attention to the stability and fairness of the main network protocol

4.5 Cases: P2P download and FileCoin

Related modes: Currency mode and mining mode have been used together; Combined with the Token of the content mode, the content can be monetized and distributed storage at the same time. For example, in combination with the Token of fan mode, distributed bandwidth and storage sharing can be utilized on the exclusive media player of fans.

4.6 Token Case: IPFS

IPFS is short for the point-to-point protocol InterPlanetary File System. It is essentially a content-addressable, version-based, point-to-point hypermedia distributed storage and transport protocol that attempts to connect all computing devices with the same File System. The goal is to complement or even replace the hypertext Media Transfer Protocol (HTTP) that has been in use for the past 20 years, with the hope of building a faster, more secure and freer Internet era.

IFPS makes web pages faster, more secure, more robust, and more durable by replacing domain-based addresses with content-based addresses, where users are not looking for an address but for content stored somewhere, without verifying the identity of the sender, just the hash of the content.

How IPFS works: Each file and all the blocks in it are given a unique fingerprint called a cryptographic hash, IPFS eliminates duplication across the network and tracks the version history of each file, each network node stores only content of interest, and some index information that helps determine who is storing content, The network can be asked to look for nodes that store content behind a unique hash when looking for files, and each file can be found by readable name through a distributed naming system called IPNS.

5

Special patterns of the 10 design patterns of Token

In addition to the above ten patterns, there are also some special patterns of token design patterns, which are not due to the difference of business models, but some specific scenes or functions, but may exist independently. Therefore, special explanations are made in this chapter to avoid confusing the differences between scenes and functions and design patterns.

5.1 scenario

Scene Token refers to some specific scenes on the blockchain, such as voting, prediction, games and virtual VR. Scene Token needs to be used as the entrance or access key of the scene, and become the means of payment and settlement or the certificate of participation right in the scene.

Scenario tokens are suitable for businesses that need short-term or long-term scenarios.

5.2 features

Functional tokens refer to some specific functions on the blockchain, such as video streaming, instant chat, e-wallet, trading platform, etc., which require functional mode tokens as keys to access functions and as secondary tokens to blockchain functions.

Functional tokens are suitable for some specific functions on the blockchain platform, which depends on the functional planning and specific design of each enterprise.

5.3 How to create a secondary market

In the world of digital cryptocurrencies, digital currency exchanges act as a secondary market for stock exchanges. In a Token economy, in addition to the primary market in the early stages of equity, cornerstone investment, strategic investment and private pre-sale, it is more important to deal in the secondary market after public offering and offering. Only an active secondary market can have liquidity and value increase.

However, the secondary market of digital cryptocurrency tokens is not just a digital currency exchange, and cryptocurrency tokens do not have to be listed on the currency exchange to have liquidity, which is the core difference between digital currency exchanges and digital asset trading platforms.

As a digital currency exchange, there are currently two directions:

• One is the centralized digital currency exchange (CEX), which is developed based on Web technology like Coinbase and Huobi.

• One is a decentralized distributed exchange (DEX), similar to EtherDelta, Bitshares and others, which are distributed transactions on the chain based on blockchain technology.

However, no matter it is centralized or decentralized, it is still a digital currency exchange, which is a direct coin transaction or a coin and fiat coin transaction.

As a digital asset trading platform, starting with digital asset Token, it can not only do Coin digital asset trading, that is, the first two kinds of digital currency exchanges; It can also do the exchange market of digital assets of Token class without issuing coins. That is to say, digital asset trading platforms can have rich secondary market modes, mainly in four directions: digital currency exchange (including centralized and decentralized exchanges), digital asset trading market, industrial chain trading market and financial asset exchange (Token derivatives).

The business of digital currency exchanges should be widely understood, with reference to the centralized Huobi Binan or the slightly unknown decentralized Bitshares. The latter three are the key to obtain liquidity for Token assets without coin issuance. Let’s expand and see how to raise funds without coin issuance.

Digital assets are different from digital assets. Digital assets are the digitization of physical assets (there is a possibility of one-to-one mapping). Digital assets may come directly from numbers or trust (there is not necessarily a corresponding physical asset).

Token assets issued by traditional industries will correspond to specific entity businesses even if there is no one-to-one counterpart of physical assets. Therefore, it is not necessary to issue coins for exchange, but can be circulated in the open digital asset exchange market. The digital asset exchange market will establish standard protocols for crypto assets, open to the outside world and realize exchange; At the same time, with the physical assets of the exchange market, to complement rather than replace the original transaction, thus achieving incremental value. On the basis of the transaction and exchange of Token assets, liquidity can also be realized through financial products such as digital crypto asset pledge financing, digital asset securitization, trust asset package and P2P financial investment.

The industrial chain trading market refers to the blockchain and Token assets of the industrial alliance within a specific industrial chain, which have sufficient volume and the settlement needs of upstream and downstream node enterprises. Therefore, it can establish a decentralized trading market within the industrial chain to realize the circulation within the industrial chain system and realize the circulation within the system. Based on the consensus of the industrial alliance, unified payment and settlement are carried out with industrial tokens, and industrial assets such as Token, industrial Coin, and ticket assets upstream and downstream of the industrial chain are traded, exchanged and circulated in the industrial chain trading market.

The core of Asset trading market of ** industrial chain is to provide P2P transactions for enterprise nodes within the industrial chain based on industrial consensus, centering on Token transaction, Asset transaction and contract transaction on the chain. The transaction between ** and fiat money often requires financial institutions to design financial products such as trust, asset securitization and P2P financial investment through compliance channels and combining the up-chain data of commodities, orders and bills of traditional industries.

Financial asset exchange is a financial derivative business for digital assets. When tokens are no longer listed in coins but return to the financial properties of digital crypto assets, the financial business of digital assets can be fully derived, from simple Token over-the-counter transactions, Token red envelopes, Token one-click exchange, etc. To advanced Token financial services such as Token guarantee trading, Token pledge financing, Token finance lease, DApp trading market, etc., and then there are financial derivatives services such as Token futures, Token options, basket portfolio, ETF, etc. Financial asset exchange is for these Token asset derivatives business services.

Therefore, if the digital asset trading platform is well positioned and operated, it can have richer means than digital currency trading to help traditional industries realize digital assets and secondary market liquidity of digital assets.

5.4 Trading Platform

Digital currency exchange is the key place for the circulation and price discovery of digital currency, and also the most influential and profitable node of the digital currency industry. Digital currency exchanges have also experienced rapid growth, from initial centralised exchanges to more recently decentralized exchanges, as well as constant adjustments in the appropriateness of regulated policies.

Generally speaking, centralized exchanges are divided into legal currency exchange, currency exchange and futures exchange. Fiat coins include Coinbase, which can directly buy and sell digital currencies with fiat currency exchange license, and Huobi, which makes OTC matching suggestions. Coin trading is the basic function of mainstream exchanges because it is not subject to regulatory policy marketing. Futures exchanges with high risk and high leverage require supervision, so there are fewer of them, similar to BitMex and CME.

The centralized digital currency exchange holds a large amount of user funds, which has security risks and is easy to be targeted by hackers. There is also the risk of the exchange stealing from its users and misappropriating their assets; There are also some fraud and insider trading risks, such as brushing orders, market making, making; There is also a lack of liquidity.

Decentralized exchange is a P2P trading market directly constructed on the block chain. Users can keep private keys and digital currency assets by themselves, thus solving the disadvantages brought by the current centralized exchange. Decentralized trading all EtherDelta, BitShare, 0X, etc.

As traditional financial institutions such as quantitative funds and investment banks enter the digital currency investment market, derivative exchanges have begun to develop, from quantitative trading and high-frequency trading to digital currency exchanges such as options, indexes and ETFs, as well as securities Token exchanges, bringing diversified investment methods to digital currency investors.

Trading platforms in these aspects, including equity token trading platform Tzero, asset management quantitative trading ExTrade, HIGH-FREQUENCY trading RREX, ETF exchange Firstcrypto, option contract trading ValPromise, quantitative and arbitrage trading Rcash, are emerging one after another. Based on the depth of different dimensions such as traditional financial teams or big data ARTIFICIAL intelligence, the derivatives trading market is increasingly characterized by trading depth and investment diversity, and even high-frequency artificial intelligence robots or traders will appear.

5.5 Token Case: Augur

Augur is an open source, distributed, P2P prediction market platform based on the Ethereum blockchain.

REP is the currency of the Augur system, a distributed predictive market platform that allows users to provide real-world information to Augur contracts. Augur ensures the accuracy of real-world information by providing REP token holders with financial incentives to correct markets they believe are wrong. Users can participate in Augur in several ways: trading stocks on the market, creating prediction markets, or participating in reports to keep Augur predictions accurate.

On the Augur prediction platform, market creators set the start and end times of events, designated reporters, resolution sources, and settlement fees, and traders can buy shares in the Augur market immediately after the market is created. The Augur contract maintains an order for each market created and offers shares at the current best price. Settlement fees are paid by traders when they settle their positions in the market. After an event occurs, the outcome is determined by a designated reporter or, ultimately, by Augur’s distributed forecaster. REP Token holders can participate in the Augur Reporting system and can resolve any tentative results of the Augur market within 7 days of resolving the issue in dispute.

There are no restrictions on Augur, and anyone, anywhere in the world, is free to participate in the Augur market.

6

Token of implementation patterns | Token financial and governance

6.1 Token financial

The token-based digital asset market in traditional industries will gradually enter the rational investment stage with the continuous maturity of industrial investors, and the secondary market and derivatives will continue to expand the transaction depth of digital asset investment. Around the extension of trading, there will be two directions: one is the secondary market and derivatives of digital asset investment, and the other is the secondary market and derivatives of digital currency.

The secondary market and derivatives of digital assets are mainly to explore the transaction depth after the chain confirmation of rights on physical assets as digital assets. The transaction of digital asset tokens does not need to issue coins or be conducted on digital currency exchanges, but on digital asset trading platforms.

Most of the tokens in the chain confirmation or isolation package of real assets in traditional industries are co-ownership or usuage rights. Tokens correspond to real assets and can be monetized with or without Coin. Through asset securitization of tokens or trust asset package, funds can be opened up. Or realize secondary market trading on digital asset trading platform.

For example, Citic Press designs authors’ content creation as trust assets, designs the usufruct Token of authors’ works as trust assets through Citic Securities, and then issues collective financial products. This model can be applied not only to copyright, but also to land, agricultural products or livestock with high single value and other physical assets.

** On the digital asset trading platform, assets are tokenized, similar to asset securitization. The expected cash flow or income of physical assets in the future is packaged into tokens, which are similar to financial products or asset packages. ** is just a process, not a simple up-chain confirmation of rights, but to structuralize (priority and interlayer) the expected future cash flow or earnings like asset securitization, carry out isolation and credit enhancement, and further carry out fragmentation and minimization (P2P), and finally convert them into tradeable asset tokens. On this basis, futures, options, indexes or ETF basket investments, Token pledge financing, P2P financing, etc. can be further extended and realized.

The tokenization process of physical assets is very critical. Part of the future trend of industrial blockchain will be to issue tokens instead of coins. ITO (initial Token issuance) will be carried out for physical assets, and then secondary market transactions or derivative investment will be carried out on digital asset trading platform (using fiat currency or digital fiat currency). This can help traditional industries quickly advance financing.

For the existing digital currency market of coin trading, from the perspective of investor protection, it is necessary to provide stable and mature secondary market and derivatives for digital currency investment in addition to coin trading or futures products of exchanges, which is no different from the secondary market of traditional finance. Brokerage business, custody business, asset management business, financing, futures and options, index investment, quantitative investment, etc., all have a market basis, just because digital currency is in the savage growth stage and has not been systematically and orderly developed under supervision. Launching digital currency funds, secondary markets and derivatives businesses under the background of bear markets can embed regulatory policies through smart contracts, and can also give individual investors a sound choice of digital currency investment.

When hedge funds enter digital currency, it is a symbolic event for digital currency exchange market. There are mature digital currency futures, options and index products in foreign countries. The use of digital currency as settlement by the quant trading team is a signal that they are bullish on digital currencies, although it may be based on different digital currencies, such as stable currency USDT and mainstream currency BTCETH. Bear market digital currency volatility, professional quantitative trading team will be more substantial returns; Moreover, professional trading techniques such as over-the-counter options or swaps can avoid fluctuations and losses in digital currency transactions.

For individual investors, they can no longer be leeks waiting to be cut, but through digital currency futures, options, swaps, index investment or ETF basket investment to make sound investment, such as through a combination of bullish and put options to lock in the loss range, through index investment or ETF to make sound investment. These derivatives can be designed and issued to provide exchanges or market makers with rich trading depth.

Some exchanges have already made innovative attempts in derivatives or HIGH-FREQUENCY trading under the premise of compliance. In the future, there will be some fixed income configurations similar to monetary funds, as well as HIGH-FREQUENCY trading or HIGH-FREQUENCY quantitative funds. The mature secondary market will no longer blindly cut leek. Rather, it is a group of educated and disciplined digital currency investors investing in a mature and rich regulated exchange market.

* * block chain of traditional industry, is a fusion of traditional and digital world stage, this is a transitional period, before not fully into the digital world completely, the traditional industry chain blocks, Token and money (fiat) is inevitable, the combination of not fully digital Token and the combination of digital tokens (Coin). ** At this stage, we should recognize tokens from the perspective of digital assets and gradually realize the economic model and financial derivative services of digital assets by combining traditional economic and financial means. Only in this way can responsible and reliable industrial blockchain be promoted.

6.2 Token Governance: On-chain governance and off-chain governance

Blockchain governance is divided into on-chain governance and off-chain governance. Governance often revolves around Token and consensus, so this governance is also Token economic governance. In the Token economy, there are multiple stakeholders, there are different types of assets on the chain, and there are constantly changing smart contracts, which will face some profit-driven malicious acts and organized attacks, and there are requirements for supervision and auditing of codes and contracts.

Token governance: Before the public chain or alliance chain is released, a complete Token economic model and governance mechanism, including incentive and punishment mechanisms, should be designed. The Token economic model can keep the chain running, incentivise positive behavior and punish negative behavior, use economic means to raise the cost of evil to deter attacks, and charge fees for transactions for blockchain governance; The governance mechanism includes various smart contracts, such as voting contracts, to vote on major issues, such as the change of chain consensus, the update of chain parameters, the upgrade of chain system contracts, smart contracts and the upgrade of contract laws.

But not all governance can be implemented on-chain, off-chain governance is also critical, and many view on-chain governance as problematic. A chain has many roles, including the initial team, the core developers, the chain foundation, the chain community, users and coin holders, and miners or mining pools. Blockchain governance, if on the chain, may be controlled by coin holders or mining pools, thus failing to reflect the principle of fairness and reciprocity.

Blockchain’s on-chain decisions will be influenced by large coin holders or mining pools that control miners, or even malicious acts with 51% of the computing power; Incentives for decision making and voting are insufficient to attract participants, and it is difficult to get participants to forgo the benefits of tokens in favor of fairness or the original direction of the community; On blockchain, it is difficult to coordinate the interests of all parties. Coin holders and mining pools seek to maximize the benefits of tokens, while the consensus of core developers and the community pursue a non-utilitarian direction. Miners and the initial team also have their own positions. It cannot be ruled out that in pursuit of profit maximization, the mining pool group controlling the miners will jointly launch a 51% computing power attack.

In a typical case, ethereum upgrades don’t depend on the Ethereum fund or founder V god. From a governance perspective, it’s hard to judge whether this is a good thing or a bad thing because only the founder is the most non-utilitarian.

6.3 Token Governance: Economic model governance

From the perspective of governance, the design of economic models and monetary policies can also be included in the scope of Token governance. The economic model of Token has been analyzed before. The core is the issuing mode of Token. How to determine the total value? How to price it? Tokens in traditional industries need to have an algorithm to anchor the continued issuance of an asset, rather than beating heads like air coins. Other monetary policies, such as bounty programs, incentives, ambassadors and repo destruction issues, are the same.

** The key to economic model governance is to be able to accurately predict people’s behavior and formulate economic rules on the chain in codes or smart contracts. ** For example, monetary policy for digital assets inflation or deflation, defining policies and determining the amount of issuance and supply and pegged currency; Define fiscal policy and block size; Defining tax registration, determining transaction charges or fuel consumption; Definition of governance mechanisms, voting decisions and consensus upgrading; Develop common defense mechanisms to protect networks of digital assets.

Economic model point of view is hope there is a group of people who know their industry continues to hold and investment, so the combination of the incentive mechanism design is critical, in attracting industry investors into the reward, to use the Token of incentive, to hold or continue for a long time to motivate or profit sharing investment trading Token, so as to establish an organic ecological system.

A stable functioning blockchain system forms an economic and financial system that requires ongoing auditing and supervision of the economic transactions that operate within it to eliminate illegal contracts and transactions, such as customer due diligence to comply with KYC regulatory requirements; Monitor and analyze the inflow and outflow of funds to meet the requirements of anti-money laundering supervision; At the same time, the effective governance of blockchain can be realized based on the intelligent analysis of big data of blockchain transaction data.

Recommend Ye Kai’s new book: Token Economic Design Model

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