The Economics of Blockchain Protocols

  • a cryptocurrency having means of payment and a store of value fuction,
  • a cryptocurrency with a utility value
  • a cryptocurrency backed by yield or assets.

Cryptocurrencies as a means of payment

A store of value as a powerful use case

Cryptocurrencies with a utility value

Micro-economies

Use case of cryptocurrencies with a utility value

Value drivers of blockchain protocols

MVp = MVc * Vc

  • MVp = protocol value,
  • MVc= value of cryptocurrency, designed on the protocol,
  • Vc = velocity or frequency of cryptocurrency exchange.

MVn = (Σ MVp )^m

  • MVn = native protocol value
  • MVp= subprotocol value
  • m > 1.

(Non-)ownership of the protocol

“Helicopter money” and inflation effects

Cryptoeconomics

Conclusion

--

--

--

Founder of blockanalitica.com

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

I told you, it‘s a good time to join CakeDeFi…

Starswap IDO 流程简介

Building a Trend-Trading Crypto Bot

Regen Network Closes Private Token Sale Round; Raises $10.5 Million

Does Time in Market Always Beat Timing the Market?

Crypto Coverage Review: Bridge Mutual for Anchor Savings Accounts

Next Crypto Bull Run Will Exceed Your Wildest Expectations

Blockchain: Breaking the Backbone of Banking

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Primoz Kordez

Primoz Kordez

Founder of blockanalitica.com

More from Medium

Pocket Network-Investment Thesis

(✨,✨) Starcoin: a fully decentralized, open-sourced multi-layered blockchain, built on PoW

The Phantom Menace of Radical Regulation of Digital Assets

dangers of cryptocurrency regulation

How do Decentralized Exchanges Make Money?