Economics Design

Bonding curves are more than just a "cool crypto feature". It's an interface to allow for variables in the system to interact. It's the basic underlying structure to build all these DeFi applications and products. We're very lucky to have Jeff Emmett from the Common Stack team with us today! In this episode, we will uncover the various DeFi use-cases, the types of bonding curve, the generalised ma...

Continuing on from the topic of bonding curve, we explore the application of bonding curves with additional incentive mechanisms like Harberger taxes on a new asset class — non-fungible tokens. In this episode, we are excited to be joined by our guest Simon de la Rouviere . He's known to start talking actively about bonding curves and it's making a huge impact to the future that we are building —...

Ampleforth is very interesting because it could definitely become a global base currency moving forward. Instead of USD, imagine a currency that is used by everyone in the world to trade. Instead of having the world currency (USD) being tied to the internal politics of US, this new currency is neutral and changes its monetary supply based on the global demand of money. In this episode, we will unc...

We've covered about bonding curves and the various incentive mechanisms that you can bake into the curve. This episode, we focus on using bonding curve as a way to fundraise for your project. Fundraising with tokens doesn't always mean that the token is a security. It can also be a utility. Here, we share 4 use-cases of how bonding curves are used in fundraising. Unlike autonomous market maker, th...

In Part 1 , we covered the basics of token bonding curves and understand how the shape of the curve affects the incentive mechanism. In this episode, we look into the application of token bonding curve in decentralised exchanges, DEX. Specifically, the use case of Autonomous Market Maker. We dive into 4 case studies: Bancor, Uniswap, Balancer, Curve The concept of token bonding curve in this 4 DEX...

This is a 2-part series. Part 1 is on the economics and math of token bonding curve 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 mor...

Token economics or tokenomics set up the economy of a crypto project by creating incentives for the hodlers of the token and defining the utility of the tokens, a major factor behind their demand. A proper understanding of tokenomics under your belt provides you with fundamental skills to evaluate a crypto project. With their docs or white paper, you can get an insight into the supply and demand o...

New token design are constantly entering the space. As DeFi continues to mature, we will start to see more sophisticated tokenised products with mathematical programmable rules embedded in them. How is now not the best time to be alive! This episode, we dive into leveraged tokens. Using the token economics framework, we uncover the economics behind leveraged tokens, using FTX as an example. Some s...

Yield Farming is one of the hottest topics in decentralised finance and there is a high chance you may have already heard something about the insane returns that some of the yield farmers are making. If you're looking to increase your returns on your cryptocurrency investments, you may be interested in yield farming. But what is yield farming? How does it work? What are some of the examples of yie...

Newsletters will be a summary of each weekly episode. Watch it on YouTube for visuals. TLDR below. This is not financial advice. Catch the episode on YouTube. General Conclusion You've probably heard enough about the whole argument of "money used to be gold". In this episode, we will uncover the fundamentals of how money accrues value from 2 perspectives — metallism and chartalism. There are plent...

Newsletters will be a summary of each weekly episode, instead of a transcript. Let me know if you love or hate it! TLDR below. This is not financial advice. General Conclusion Whilst there is no holy grail of model to design (token) economics, there is a framework that you can use. I developed this after researching for 2 years. ( Paper here ) Basically deconstructing economics to its principles a...

Trying a new format for videos. Let me know if you prefer this format or the previous ones! This is a case study of Binance's native token, BNB. Bookmarks so you can jump to your preferred sections: Quick PSA on the term "token economics": 00:51 // Market design of BNB token: 01:22 // (Token Design) Token structure: monetary policy and valuation: 04:14 // (Token Design) Financial incentives of BNB...

Often, we like to think that token economics is all about the token. That is not true. It also comes with the design of the environment, which the token exists in. And that's market design. In this episode, we uncover what market design is, what are the 3 aspects to consider and examples of how they can be applied when you design your token ecosystem. Want more in-depth content? Join our Token Eco...

This special episode, we will look into the case study of Bitcoin and uncover its monetary policy and implications to pricing in the 2020 block rewards halving. With the reduced selling pressure, increased sellers inelasticity, reduced inflation (due to stock-to-flow ratio) and derivatives, this 2020 bitcoin block reward halving could see a different volatility in the market. Watch on YouTube for...

In this episode, we will unbox the problems, questions and analysis of Libra Network. We will share about the reason Facebook is entering the financial space, how Facebook is looking to extract more value from its platform, the blurred line between government and firms, impact on the Libra coin for retail and institution users. Libra is not just about world domination with money, but how do we bui...

In this episode, we will unbox the economics design of Facebook's Libra network. Applying the token economics framework, we will analyse the economics design of Libra coin based on the new Libra Whitepaper 2.0. Remember to subscribe on YouTube for visual learners and Substack for those who prefer reading! This is a public episode. If you would like to discuss this with other subscribers or get acc...

In EP 4, we covered behavioural economics, which is principle 1 in token economics. Today, we will come back to the basics of supply and demand. Why we need it, how to govern it and how can we apply to the token economics that you are building. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.newsletter.economicsdesign.co...

So far, we focused on classic economics and how we can apply classic economics into the design of economics systems. In this episode, let's talk about a key underlying principle to manage the ecosystem, behavioural economics. Economics design of the crypto ecosystems are in 2 layers. Layer 1 on classic economics and beautiful mathematical formulas. Layer 2 on behaviours of participants and actions...

Previously, we looked at the economics design of a video game, as well as what we can learn from viruses that are applicable to economics design. In this video, we take it one step further and look at token economics, as well as how it is redefining the future of the world we live in today. The beauty of token economics is that its possibilities are endless. From art to buildings, the way we inves...

We can learn so much from biology and how it adapts to changes in the environment. Taking the lesson from Coronavirus, I'm keen to figure out the mechanisms in which viruses adapt and mutate as a result. In this episode, we want to answer 3 fundamental things: 1. What drives evolution? 2. What role does the environment play in evolution? 3. How can we apply this to designing complex evolving econo...

This is the first episode to Economics Design 1. Think it is not relevant to you? If you have ever sold tickets to an event, collected points for a membership, or done management of a space or any sort - economics design is more than relevant to you!  In this episode, Lisa tells us how to design a working economics system within a zoo. Tell us what do you want us to try next? This is a public epis...