Redefining Token Design

In this edition, we explore the potential of tokens and dive into their diverse applications that go beyond mere tokenomics to highlight why they are a game-changer. And in our DeFi roundup, we cover:

🔥 First token on Uniswap Token soars after burn

🇺🇸 US: Dy Secy calls out some crypto firms 

📈 Bitcoin surged 27% in October - ETF effect?

Tokens aren't just plain old "crypto assets" anymore. They're shape-shifters that assume new definitions in different contexts. Their buzz comes from their versatility and so whether you're an art connoisseur, cryptography buff, design enthusiast, economics nerd, avid gamer, math whiz, or a psychology enthusiast, tokens are making their presence felt in your world. 

At their core, tokens can be seen as privately issued digital assets, enabling the exchange of value within a specific ecosystem. Yet, their utility stretches beyond a mere medium of trade. That's why 'tokenomics' is a bit of an understatement – they can do so much more!

Token design is evolving as a field at the intersection of technology & economics. Tokens can have multi-functionality in a protocol and cover dimensions beyond governance or ownership. Advanced protocols today pay significant attention to token design and utility - as the value of the protocol will ultimately be determined by the value of the tokens

DeFi’s $50 billion market cap, might seem like a small piece of the pie, but that does not stop it from being the fastest-growing sector. With that in mind, let's dive into the top DeFi tokens worth keeping an eye on.

• At the top of the DeFi game is "lido staked ether" or SETH. It's like Ethereum, but it's been put to work in a special way through a protocol called Lido. 

• DAI – which is essentially an algo stable coin (or digital dollar), always worth $1 each, and is made by MakerDAO. Those who want to keep their crypto in stable territories usually turn to DAI.

• Then there's UNI, from UniSwap, that mimics a digital swap meet. You can trade one crypto for another, no questions asked.

• Chainlink's LINK which is the key to getting real-world crypto info. Imagine knowing the weather or the price of your favorite crypto in an instant – that's what LINK does.

While CoinMarketCap and CoinGecko might bundle all the DeFi projects together, they can actually be sorted out based on whether they offer governance tokens.

DeFi tokens often belong to DeFi platforms, which in some instances are run entirely by the users. If you want to have a voice in shaping these platforms, you'll need "governance tokens." These tokens are like your microphone, allowing you to express your opinions about where the platform is heading and help steer its future. And the developers usually follow what the voters decide. 

The value of these tokens also shows how much people believe in the project. The more tokens you've got, the louder your voice. The concept is straightforward: when you've invested heavily in a project, it's likely because you're truly committed to its success.

Uniswap's UNI, is the largest governance token of its kind. It rolled out in September 2020, and they gave away 400 UNI tokens to every wallet that had used their protocol before September 1 of that year as a surprise gift for early adopters. Several other protocols followed suit - giving away governance tokens to those who got in early to get them involved in voting. 

Some of the other big players in the governance token game are PancakeSwap (CAKE), Aave (AAVE), and Maker (MKR).

Governance tokens are a bit like other cryptocurrencies – they can be bought and sold on exchanges, and their prices can fluctuate. Plus, some of these new tokens can't be moved around until the holders give the green light.

Tokens have extensive use cases - right from powering DEXs to buying in-game treasures. They can be transferable, or traded freely - or not, all by design. 

• Real Estate: Turning real estate into tokens makes it easier to buy and sell, which means both regular people and high-rollers, can get in on the action. And, there's less red tape, which means fewer fees for buyers. It's a win-win!

• Custody of Government Documents: Stashing all your medical and government records on blockchain keeps it in a secure vault ensuring the privacy of your documents.

• IP Rights: Patent owners can mint their content into NFTs and get them timestamped with ownership IP. As storage of the items in blockchain ensures they’re tamperproof creators safeguard their standing in their respective industries. 

• Gaming Sector: Previously, only the game makers were raking in the cash but that changed with NFTs that enable gamers to also cash in. They can create, collect, and trade in-game items, like characters and skins. With the rise of the metaverse, the gaming industry is in for a whole new world of opportunities. 

• NFT Artworks: Artists, who once struggled to earn from their work, can now turn their physical and digital creations into NFTs and sell them to a global audience. 

• Ownership Of Tangible Properties: Property owners can digitize their real-world assets and store them as NFTs. Take, for example, a vintage car dealership – they can turn their classic autos into NFTs, making them easy to trade and showcasing them to a wider audience. 

Asset Management: Tokens are changing the approach to asset management by enabling ownership of typically hard-to-access assets. They make everything simpler and cheaper through smart contracts, boosting security and openness. In a nutshell, tokens in asset management offer the potential for more accessible, efficient, and innovative investing in the financial world.

More importantly, tokenized asset management will be the next generation of asset/wealth management for enabling users to manage their entire digital assets wealth life cycle. This is where advanced DeFi platforms like the aarnâ protocol operate, with a nifty tokenization platform comprising seven smart contracts to create â_fi vaults that make crypto & DeFi access easy, yet intelligent.

Despite blockchain technology being around for more than a decade, there remains a fragmented and varied understanding of its economic and business implications. The transition from economics to token design underscores the role that tokens play within blockchain-based ecosystems.

Oct. 26: HAY token hit $5.5M after a wild 'burning' party by a dedicated holder who's been 'HODLing' 51 tokens since 2019!

cryptopotato.com 

Deputy Treasury Secretary Wally Adeyemo called out some players in the digital asset sector for not doing enough to combat illicit finance. 

theprint.in

BTC’s 27% soar led traders to go all out, with "panic buying" hitting the sentiment scale's "exuberant" level, according to Matrixport.

coindesk.com

aarnâ's mission is to decentralize the alpha value chain, empowering everyone to benefit from DeFi’s transformative potential, and helping manage one’s crypto & digital assets wealth. >> Join our beta

hope you liked Alpha unhashed. If you’d prefer to see it in your inbox at a particular time, click here & select a time slot.

• Website

• Twitter

• Telegram