RE: Synthetix Inspires Better Token Economics Everywhere
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Great article @shanghaipreneur.
This caught my attention:
That’s because the inflation pool “adds incentive for people to participate and contribute at an early stage in the system’s life, which is when it’s most important due to the compounding nature of network effects.”
Ironic you posted this on the day that there was a clip on discord where Leofinance will have a halving of the token.
Instead of growth, I guess they want to go in the other direction.
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The story of SNX should be inspiration for everyone building their own micro-economy. I mean, they were left for dead, and now some even argue that they are the #1 DeFi project in the space. Statistically, they probably will be once ETH2 launches. Vitalik is even participating in their v2 synthetix.exchange testnet.
It may well be that for the LEO token here, as it is not really finance-oriented in nature, that a halving is better for price appreciation. SNX needed to incentivize value brought into the ecosystem, so SNX inflation is used to compensate people for staking ETH and stablecoins into the ecosystem in order to make onboarding (into their synthetic versions of these assets, sETH and sUSD) as slippage-free as possible. The idea is that you need a seamless value transfer into and out of the SNX ecosystem in order to be encouraged to use it more.
For social media on the blockchain, it's a bit different. But yeah, I mean, it really comes down to how the founder best sees fit to bootstrap network effects, which can happen in all sorts of ways.
Yes it is different but still requires incentive. This is something that needs push regardless of how the network effect is achieved.
Even for a social media application, still need users which entails rewards.
There are other ways to get network effects yet we have no seemed to found it yet.
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