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The Next Phase of Tokenomics

Why participant-centric tokenomics systems are the future, and how to design them

It’s all heading to real, tangible value

Focus on the participant, not the token holder

  1. A user participates in the protocol to do some activity they find valuable.
  2. That user can enhance the value they get from that activity by owning more of the token.
  3. This increases demand for the token, which increases the network’s value.
  4. The protocol uses the increased resources from the larger network value to either further incentivize the activity or invest in improving it, like adding features to enhance the experience for participants.
  5. This makes the activity more compelling, which attracts new users and more participation.

How to design a participant-centric system

  • Investors get value by supplying capital to earn yield. So the system should encourage investors to own more tokens in order to increase their yields.
  • Borrowers get value by being able to borrow. So the system should encourage borrowers to own more tokens in order to be eligible to borrow more.
  • Auditors get value by being paid to perform audits. So the system should encourage auditors to own more tokens in order to earn more audit fees.

The next phase of tokenomics



Goldfinch is a global, decentralized credit protocol for lending to real-world businesses.

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Goldfinch Foundation

Goldfinch is a decentralized credit protocol that allows anyone to be a lender, not just banks.