New Ecosystems in Web3
How tokenomic systems may facilitate more opportunities for inclusion in Web3
This report explores the ways that Web3 has the potential to shift power: rather than simply continuing to strengthen the existing tech ecosystem, Web3’s decentralized ethos may enable a plurality of ecosystems to emerge. In particular, this report focuses on how implementing sustainable tokenomic systems may be one of the keys to seeding this new reality.
Policy memo forthcoming
“There’s such a long history of being subjected to bigger powers, and tech is one of those powers now. Figuring out a way to create an organization that has power that mirrors our community structure is incredibly important. We do have to disrupt and create something completely different that’s on our own terms.”
In the report, we quote Chamisa Edmo, an Indigenous Technologist, Educator, and Entrepreneur.
Report Goals
Highlight the diversity of builders designing tokenomic systems and their reasons for turning to tokenomics to create new types of digital ecosystems.
Demystify tokenomics and explain its potential in the greater context of Web3 tools in accessible language.
Share a high-level framework for analyzing or designing tokenomic systems.
What’s in it:
Web3 may enable communities of people online to build digital ecosystems that they are better able to build and retain their social capital.
Tokenomics is a powerful tool in the Web3 toolkit that enables communities to track things digitally such as community participation, ownership, and access to digital assets.
Building sustainable tokenomic systems is not easy—the industry is still in a nascent stage of developing the tools, technologies, best practices, and workforce to facilitate builders designing tokenomic systems.
Regulatory uncertainty was a big challenge for the builders we spoke to.
This report starts with an analysis of why builders believe that Web3 offers possibilities to create ecosystems in new ways that better enable them to build and control their social capital.
The report offers a framework for analyzing tokenomic systems and examples of the framework.
The report describes the challenges of creating tokenomic systems and shares the voices of builders currently overcoming these challenges.
Key Takeaways
To consider a tokenomic system, start with two tasks:
Know the Ecosystem: Consider the community the system is for. Identify the Strategy for the system: what Value Add would the system provide? What Roadmap would enable the system to build over time? Who from the Community should be involved? Who are the participants in the Community for the ecosystem? Also, consider the Behaviors the system should incentivize. What types of activities should the system encourage, and how does that add value to agents in the system performing those activities?
Know the Tokenomic System: A tokenomic system's design should act in support of the Ecosystem’s goals. Consider how Agents in the system may act—who gets to participate? Consider the design of the tokens themselves—what can a participant do with it? Finally, consider the Supply Policy of the system: how are tokens created or burned?
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