EP 18: Token Valuation with Token Bonding Curve

️ PSA: This podcast episode is different from the YouTube
channel. This removes the maths and graph, as it requires
visualisation. Please check out the YouTube version for the
graph. Otherwise, this episode is good enough to have you an
in-depth explanation. ️ 


This is a 2-part series. Part 1 is on the economics and math of
TBC and how the curve functions affect the incentive mechanism
and what governance can we embed into the function. Part 2 will
be on using these functions in projects, and taking a dive at a
few projects.


The episode is split into 2 because it gets quite heavy to digest
all the information at once. So part 1 is the more math-y part,
for you, as economics designers to grasp. And part 2 is the more
application-y part, for you, as economics designers to know how
to use it. After all, knowledge is only valuable when applied.


Enjoy this first part. We understand token bonding curves, the
benefits, where the value accrual is derived from and the various
functions to consider.


As much as I wish there is 1 perfect function, the functions
really depend on the objective of your system and what it wants
to incentive or govern. So choose wisely and have fun playing
with graphs!


Application to token economics framework: 00:38

What is token bonding curve: 03:53

4 properties of token bonding curve: 07:50

Use-cases: 11:38

Where does value come from: 13:37

Risks and ways to mitigate risks: 18:09

4 math functions: 19:30

How to calculate total cost of tokens: 28:39



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