What is Cryptoeconomics
Cryptoeconomics is about building systems that have certain desired properties. It uses cryptography to prove properties about messages that happened in the past and economic incentives defined inside the system to encourage desired properties to hold into the future.
It can be summarised into:
Messages in the past (through cryptography on the blockchain platform)
Economic incentives to be used in the present (through mechanism design in the ecosystem)
Desired system properties in the future (through economic incentives in token design)
Economics of Tokenisation
Cryptoeconomics vs Tokenomics
Economic incentives to be used in the token ecosystem at present
Desired system properties in the future
Messages/Data in the Past
Why are past messages important?
Economic Incentives in the Present
Bridge 1: you have to pay £1 when you use it.
Bridge 2: the bridge is made 1000 years ago, a hole in the middle and crocodiles below, eating you if you fall. No one use this bridge in the past 950 years.
Bridge 3: a wooden bridge with termites all over, a family of woodpecker pecking on the wood and a very hungry lion is on the other end, waiting to eat anything that moves. The last person who used it was eaten by the lion. You can see his skeletons at the end of the bridge.
Desired system properties in the Future
Future reading: tokenomics resource list.