Mining As A Mechanism To Do Something Before The Network Is Developed [Video]
On October 19th, Public Market co-founder KJ Erickson popped in on Los Angeles Blockchain week for the StartEngine Summit, participating on a panel called “The Benefits Of A Tokenized Economy.”
Check out the video below (it will automatically start at 1 hour, 48 minutes) or scroll down for high-level takeaways via choice quotes.
On the utility of tokens in eCommerce
“Tokens enable us to do things that previously weren’t possible under the private company model. The first thing they allow us to do is correct the end price under price parity agreements.”
On Price Parity
“The monopoly marketplaces are wise to the fact that sellers have to add 15–40% to cover the cost of the commissions they charge, so they say ‘well, you can’t charge less anywhere else.’”
On the Public Market Rewards model
“It’s basically the most souped up loyalty or rewards program the world has yet to see.”
On the role of tokens in building network effects
“In a network effect business, overcoming the cold start problem and getting early adoption of your network is absolutely critical and we’re just starting to see experiments around how you can give incentives to try out a product while it’s still in its infancy — because the expected value if that product grows can be so large.”
On what “mining” really means
“Think of ‘mining’ as a mechanism to do something before a network is fully developed…”
On regulatory strategy
“Our approach was to just put our heads down and build, and build enough to get to a fully functioning network, and be really conservative with the approach that we took regulatory.”
On the future of tokenization
“I think that in 5 years we’re going to see really meaningful adoption where most normal people are interacting with tokens whether or not they’re aware of that…in ten years you’re going to see a really major shift in how corporations, especially the ones that are built around network effects, are created and a real move towards elimination of extraction from centralized companies.”
