H/t to Qiao Wang from Messari whose writing on the theory of The Firm sparked this thought process.

Since its inception, the internet has structurally reorganized many industries, such as the newspaper industry. The internet has empowered aggregators and platforms who serve customers to the detriment of suppliers by forcing suppliers to compete on cost or attention. For example, the e-commerce industry builds its websites and invests huge amounts to optimize their rankings on Google. Google has fundamentally reorganized countless industries that rely on traffic.

There has been as a pushback over this new economic structure and over the next…


*This article discusses legal concepts on a high-level. I am not a lawyer, and I am certainly not your lawyer. This is not legal advice.*

Security Tokens burst onto the scene towards the second half of 2018. Suddenly, it seemed that every blockchain project raised funding through a Security Token Offering (STO). The popularity of STOs grew after regulatory pressure forced token issuers to use compliant instruments. Security Tokens have the potential to be so much more than just a fundraising tool for entrepreneurs and startups, but only after the outstanding legal questions are answered.

In 2018, the SEC made…


Authors: James Kilroe & Seamus Hennesy

It’s no secret that DApps have struggled to achieve adoption; in fact, according to stateofthedapps.com, the most popular DApp currently has just 1,811 daily active users (DAUs). In our opinion, the poor adoption rates of DApps can be attributed to the high adoption costs of using DApps, such as the time required to sign up, monetary cost or the fear of loss. These adoption costs are particularly high relative to the perceived value gained, especially when compared to Web 2.0 platforms that are designed with much lower adoption costs.

Crypto Kitties (which is currently…


It has been said that Token Curated Registries (TCRs) could become the lists of the future. The topic is becoming increasingly popular, and it’s no wonder — we love lists. Top restaurants, top universities, the best cars — we are inherently drawn to online lists to make various decisions. Why is this so? It’s because in this day and age, we are bombarded with so much information that attention is increasingly rare and in an ‘attention-based’ economy, we use curation through lists to help make our decisions.

In this article, I’ll unpack exactly what a TCR is, some of their…


EOS is about to launch its mainnet this week after a year of anticipation and a $4 billion+ raise. It is the first of many new smart contract platforms that will launch in the next 12 months. Second generation smart contract platforms such as Tezos, Cardano and Dfinity, have all raised a staggering amount of money, more than $5 billion combined. These chains are all in a race to become the biggest network and to do that, they need to beat Ethereum. …


Authors: Kyle Levin & James Kilroe

As we move towards a more decentralized world, it has become apparent that tokens are critical in enabling true decentralization. DApp builders must design platforms that are both technically decentralized (Byzantine Fault Tolerant) and regulate the behaviour of actors on the network without a central authority. Decentralized regulation of behavior, where participants can trust the economic rules in the system and the incentives created by those rules, is increasingly being classified as Token Economics.

The Newtown Partners team led the redesign of the Civic token economy, collaborating closely with the Civic team. Using game theory and some mathematical modelling, we…


“the market cap of the protocol always grows faster than the combined value of the applications built on top, since the success of the application layer drives further speculation at the protocol layer.” — Joel Monegro

In Fat Protocols, Joel Monegro predicted that the blockchain will turn where internet value is captured on its head. He showed how in the current internet, HTTP or TCP/IP captured zero value, while FANG (Facebook, Amazon, Netflix, Google) made billions. However, in the new ‘blockchain’ internet, the protocols capture the majority of the value, while companies only capture a slither. Bitcoin is worth over…


Hi guys, Tricia asked me to share this extract on the Wala blog as it describes the expected velocity of the Dala Token. If you are a crypto-enthusiast and you don’t know about token velocity or velocity levers yet, you should. Trust me. They are some of the biggest factors in the price of a token. My original post explains token velocity in more detail. I hope you enjoy the read.— James

Dala is the rewards token for the Wala financial platform. The Wala financial platform aims to connect financial service providers (such as banks) with previously unobtainable customers. An…


The velocity of tokens is a key aspect that affects future token value; however, it is also one of the least understood. This post attempts to describe velocity, how it impacts any token price over time and analyses the velocity of the Dala token as an example.

Equation of exchange

The equation of exchange is defined as: MV=PT

Where: M= money supply, V= velocity of money, P= average price level of goods, T= index of expenditures (such as the total number of economic transactions)

In token economies, this has been adopted by two prominent people — Chris Burniske and Vitalik Buterin.

Burniske definition…


Joel Monegro wrote “Fat Protocols” in 2016, where he postulated that the blockchain stack captures value at the protocol level (Bitcoin and Ethereum) and not the application layer. This is different to the the internet, which captured the value at the application layer (Amazon, Facebook) and not the protocol layer (TCP/IP or SMTP).

Fat Protocol Thesis (Image Source)

I agree with Joel’s thesis that the Protocol layer will capture the aggregate of the value of decentralised stack. However, there was one element in his article that is mostly glossed over:

When a token appreciates in value, it draws the attention of early speculators, developers and…

James Kilroe

Investor Interested in token economies, blockchain & Space technology. @Cambridge_JBS & @UCT_news alumnus.

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