TL;DR 5 Sentence Summary - Velocity of Tokens

2년 전

The velocity of tokens is a key aspect that affects future token value; however, it is also one of the least understood.

There are multiple levers which token economics can use to adjust velocity.

These all involve incentivising token users to hold their tokens for an extended time.

Implicitly, there is a cost to token holders who hold for an extended period.

This cost is the loss of yield if their wealth was held in another token. If the utility benefit of the system doesn’t exceed the holding cost then the system will struggle to achieve adoption.

Source: Medium

This is a fantastic opinion piece that illustrates the complexities which drive the value of Tokens. With the heavily saturated ICO market currently on display, it's a good idea for investors to be well versed on how Tokens can appreciate. Otherwise, you'll risk holding bags of empty promises.

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This post has received a 8.06 % upvote from @booster thanks to: @elowin.