The equation of exchange in token economics

Tokenomics is one of my favorite subjects. It deals with the design of the correct incentive mechanisms, so that a blockchain project’s economy can be successful. The study of tokenomics and the design of token economies can include things such as game theory, and models that ensure token appreciation (such as agent-based modelling), as well as data science.

I recently wrote a post about the famous equation of exchange, and how it can be used to build and analyse token economies. This followed some previous work done during the ICO boom. I decided to also record a podcast episode to walk you through the post, since tokenomics is one of the most exciting, but misunderstood areas out there.

Make sure to also check out my posts on agent based modelling, which is one of the best techniques to study and design token economies. You can also learn more about this in the two videos below.