The core feature of tokenized ecosystems (public blockchains) is encouraging participants to do work. Incentives are powerful — as well described by Charlie Munger: “Show me the incentive and I will show you the outcome.” Blockchains can be seen as incentive machines: one can get participants to do work by rewarding them with tokens. To be more specific, the (block) reward function defines what networks do.
In many examples of the former presented token models, there is one misalignment in terms of incentives: a token ecosystem most often will have token holders that cannot, or do not, want to do work within the ecosystem (i.e. stake but no work). On the other hand, there are possible workers with the resources to work but not the tokens to stake (i.e. work but no stake).
This leads to situations where there is no real incentive for a community to initially fund or build an ecosystem, and later engage in running the product (by doing work). This is a problem well-known from classic business models: revenue most often comes later or is too small – funding is needed while building the product and ecosystem.
Considering the fact that Baseledger serves a B2B functionality, it is important to define the requirements of the token model:
  • The ecosystem is comprised of the individuals who hold tokens but do not necessarily use them or have the resources to do “work”
  • The workers are resource owners that do the work, but do not necessarily own tokens or use the service itself
  • The users are organizations that actually use the service but are not necessarily interested/allowed to buy or hold cryptocurrency
The token model should enable token holders to “rent out” their stake to resource owners, resource owners to do “work” (without being token holders themselves), and users to use Baseledger without being token holders. It is still absolutely possible that a Baseledger user is a token holder, worker, and user at the same time, but this should not be mandatory in a B2B environment.
Thus, we define the major requirements for the Baseledger token model:
  • Incentivize the ecosystem to own and hold tokens to drive Baseledger
  • Incentivize the workers to provide the working resources for keeping Baseledger up and running
  • Incentivize the users to use the services without the compulsory obligation to be part of the ecosystem or workers
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