The Tokenomics Episode: Why ‘EIP 1559 Is Like Catnip for Investors’ - Ep.292
Unchained
Exploring Tokenomics and DeFi Dynamics
This chapter examines the intricacies of tokenomics and its role in shaping user behavior through incentive design in decentralized networks. It draws on examples from decentralized exchanges like Astroport and SushiSwap to highlight the challenges and innovative strategies in maintaining a sustainable DeFi ecosystem.
Two tokenomics experts, Yan Liberman, co-founder of Delphi Digital, and Viktor Bunin, protocol specialist at Coinbase Cloud, discuss their experiences building tokens, their thoughts on the recent ENS/PSP airdrops, and what “fair” token distribution looks like. Show highlights:
- the definition of tokenomics
- what factors (such as utility, fairness, liquidity, security, etc.) token designers are incentivizing for
- what Yan learned from helping design Astroport tokenomics
- what Vikor learned from helping design Threshold, the token that was built to facilitate the merge of NuCypher and Keep
- how the EIP 1559 burn has changed Ethereum’s tokenomics
- how EIP 1559 has improved investor outlook for Ethereum
- why Viktor is worried about people actually using Ethereum going forward
- what Viktor and Yan think about how the ENS airdrop farming issue was handled
- what Viktor and Yan think about ParaSwap’s PSP airdrop and why Viktor thinks ParaSwap made a “mistake”
- how Viktor and Yan would go about airdropping a token to good actors instead of bad actors
- how improvements in on-chain identity could help future airdrops
- fair launch tokens versus VC-backed tokens
- what the definition of fair is in terms of tokenomics
- why Viktor thinks a token’s distribution is more important than a token’s launch
- what could be the optimal way to distribute liquidity mining rewards
- how community affects tokenomics
- how to incentivize NFT-based tokens, like the forthcoming Bored Ape Yacht Club token, for the right goals
Thank you to our sponsors!
Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021
Nodle: https://bit.ly/3AXGydJ
Yan Liberman -- co founder at Delphi Digital
- LinkedIn: https://www.linkedin.com/in/yanliberman
- Twitter: https://twitter.com/yanliberman
Viktor Bunin -- protocol specialist at Coinbase (Bison Trails)
- LinkedIn: https://www.linkedin.com/in/viktorbunin
- Twitter: https://twitter.com/ViktorBunin
Tokenomics 101 Primers:
- The Tie: https://research.thetie.io/token-economics/
- Smith and Crown: https://smithandcrown.com/research/issues-of-fairness-in-token-distribution/
- A Timeline of Token Distributions: https://blog.coinlist.co/the-evolution-of-token-distribution-models/
Recent Airdrops + Airdrop farming
Airdrop Farming
- Potential airdrops coming up:
- PSP drop w/ heavy requirements
- ENS Blacklist
Topics Mentioned
- Astroport tokenomics
- NuCypher + Keep merge
- SushiSwap vampire attack
- Tokemak tokenomics
Miscellaneous
- What is liquidity mining?
- The Internet of Money (recommended by Viktor)
Other Fun Topics
- How Token Governance Mechanisms can be implemented
- https://outlierventures.io/research/what-is-the-secret-to-building-valuable-tokens-part-2/
- Crypto Gaming economics
- https://outlierventures.io/research/p2e-2-0-a-new-economic-model-for-gaming-based-on-crypto-tokens/
- Does farming represent progress in token distribution?
- https://smithandcrown.com/research/adaptations-in-token-distribution-mechanisms-does-farming-represent-progress/
- Should treasuries hold native tokens?
- https://twitter.com/AntonioMJuliano/status/1460278949867442182
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