How to understand 'Token Economy'


At present we define five components in supply of crypto asset approach: Maximum value,?dilution携兵,uncirculated, circulated and liquidity.

This framework is useful to understand the diversity of crypto asset supply management. but it doesn't tell us how those are generated or destroyed as time goes by.

In fact, we can classify and mensure on other aspects of supply.

· Distribution way : define how initial crypto currency offering was launched and distributed.

·Initial offering: define the initial offering amount, and the way of distribution between different stakeholders( investors, founder and project operations budget, pre-defined reward).

· Additional issuering model:define the currency policy on new token issuering of certain assets.

·Offering upper limit: define crypto assets supply has upper limit or infinite issuering.

I)Distribution and initial offering

Mining distribution

Fair upper limit: no pre-mining. including BTC, Doggy,Monero

Pre-mining distribution

Crowd-funding: a part of the inital offering, by public offering token to exchange another cryto assets(ETH/BTC). E.g Tezos, BAT, Augur.

Private-funding: a part of the inital offering, by selling to a particular investor in private( investor funding or angles). E.g Cosmos, Neo and Vechain。

Airdrop: a part of the inital offering, by distributing to community for free. These kind of cryptocurrency often airfrop to holders of core currency. E.g Bitcoin

Centralized distribution: a part of cryptocurrency, by airdropping, private funding to partners, but initial offering is centralized managed. E.g XRP.

The following is the launch style situations among top 80 crypto assets distribution based on their liquid market capitalization.

Data source: Messari research


Data source: Messari Research

II)Distribution ways and supply upper limit

Inflation Monetary policy:

According to the issuring absolute amount or inflation rate, we define the continous launching ways of cryptoassets.

Aion supply curve line

Doggy coin supply curve line

Monero supply curve line

Data source: Messari Research

BNB supply curve line


BTC diamond supply curve line比特

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