Introducing Token Foundry
The global platform for properly designed tokens.
As a growing number of issues around consumer data and privacy continue to highlight concerns with large technology companies, we are witnessing a dramatic shift in interest towards decentralized systems that empower the public and consumers.
At the heart of this movement is tokenization. Tokens are the catalyst for both reimagining legacy constructs and envisioning different, previously unbuildable systems. They are enabling coordination and value-creation worldwide in fundamentally new ways that are more fair, secure, and evenly distributed.
Like any nascent paradigm shift, there is much to figure out, but we are certain consumer and securities tokens will play a large role in the construction of our decentralized future. We are launching Token Foundry as a global platform to support the token-powered networks of tomorrow.
Consumer Tokens
Among the best use cases for tokenization are what we call “consumer tokens,” which are tokens designed for “use” or “consumption” within a defined network. These tokens can resemble, among other things, memberships, licenses, collectibles, and rewards points. But most importantly, they can power the adoption and usage of new decentralized networks.
Successful ecosystems rely on coordination mechanisms and the network effects of the data they contain. Facebook, Google, and Amazon have leveraged these principles to create some of the strongest and most valuable networks in existence, but they are flawed because they unevenly distribute value to participants. Properly designed tokens, however, create mechanisms for decentralized networks to incentivize specific behaviors that lead to even stronger networks, while distributing value more fairly amongst users.
The strength of a network is fundamentally derived from the actual usage of it. For example, Uber’s value would plummet if it didn’t have drivers or riders. The same is true with consumer token networks. Unfortunately, many tokens being launched today prioritize raising money over proper design, ultimately placing tokens in the hands of investors instead of users.
We are taking a different approach. The main goal of Token Foundry is to identify the consumers who will add the most value to each token-powered network, and to lower the barriers of entry for them to participate.
Security Tokens Will Have a Separate But Equally Profound Impact
While our goal is to get consumer tokens in the hands of consumers and not investors, we believe that investors will play an important role in the tokenized future. Without a doubt, many revenue-generating businesses will be built on top of these decentralized networks, and issuing securities will still be the most appropriate financing option for them. Consumer tokens don’t replace the need for security instruments — they serve completely different purposes.
Tokenizing securities, financial instruments, and assets will have a profound impact on the world, especially financial markets. Security and asset-backed tokens will a) increase access to capital and investment opportunities; b) unlock enormous pools of liquidity; c) create liquidity for previously illiquid assets; d) improve settlement times by orders of magnitude; and e) lower the cost of transactions.
While security tokens have enormous potential, they introduce new challenges for issuers, investors, and regulators, such as provenance, custody, and coordination with existing regulations (including transfer restrictions). We firmly believe that blockchain technology and tokenization offer immense potential to solve these challenges in truly innovative ways, and we are working hard to deliver.
Welcome to the Tokenized Future
The team at Token Foundry is committed to developing the infrastructure that allows everyone to build and participate in the tokenized future. As we begin testing our new approach for selling consumer tokens, we’ll be providing updates and announcing changes and new features.
We’d love for everyone to be a part of our journey. We are now live and accepting new projects and token purchasers. You can sign up on the Token Foundry home page. We look forward to having you join us on our mission to build the tokenized future, the right way.
Harrison Hines, Founder | www.tokenfoundry.com
Disclaimer: The views expressed by the author above do not necessarily represent the views of Consensys AG. ConsenSys is a decentralized community withConsenSys Media being a platform for members to freely express their diverse ideas and perspectives. To learn more about ConsenSys and Ethereum, please visit our website.
