In essence, the distribution of Token is a kind of financing behavior. When many projects raise money, they will come up with various methods, that is, exchange enough money with the least amount of chips. The donation period is a financing plan for open source software, and ICO is a public fundraising behavior. The chaotic period is the practice of various fundraising behaviors in the market after ICO. Many of these financing plans are telling a story for a model. It is a pure currency model.

01

The pure currency model is derived from the virtual currency model, and the post-smart contract concretizes the expectations of the currency model, that is, in addition to currency, currency can be used as a medium for economic growth dividends and transfer value. These media generally refer to the token model in the public chain. Specifically, the relationship between the Steem token and the Steemit platform, the role of the media can be simplified to the fee for using the network.

Now the story of the pure currency model can no longer be told. Most of the projects are in a bear market and cannot achieve a good increase in usage, which makes the currency used as a service fee have no room for growth. Investors have lowered their investment expectations for this reason, which has led the entire investment market to a question of how to capture value. .

Whether in the primary market or the secondary market!

02

During the Blockchain Week in Shanghai, Tony from NGC used a very vivid image to describe the operation of the current blockchain projects. Every blockchain project should be like the 2020 US presidential candidate Yang, giving voters A specific, quantifiable expected benefit: $1,000 per month per person.

The current blockchain projects cannot do this in terms of economic models, especially decentralized projects. Binance Exchange has set a model for the currency circle, that is, through its own operations, it can obtain enough profits for repurchase and destruction, and return the currency holders. The pure currency model rarely thinks about the issue of value capture, but hopes to achieve growth through pure market expectations, and most projects will die as a result.

There is also a typical project that started from the alliance chain. Because of its technical advantages and industry accumulation, the project party can easily obtain some technical outsourcing work (the early blockchain outsourcing technology has a high threshold and the outsourcing fee is quite considerable), and the outsourcing income is The company's income is in the bag, and the company's volume is increasing day by day, but it is difficult to reflect the currency price. The team is indeed doing things, and its technical capabilities are indeed being strengthened, but it has nothing to do with investors, which is a common tragedy in the currency circle.

The advanced idea is that the project adopts the model of repurchase and destruction of outsourced income, but during this period, it is separated from the on-chain behavior. Under the condition that the blockchain infrastructure is not perfect today, off-chain will have a big problem. On-chain and off-chain The problem is not unsolvable, it is not easy to solve at this stage. The blockchain projects that cultivate the Internet of Things have a greater chance of encountering this problem. The Internet of Things needs a lot of dealing with real machines. The machines enter the blockchain and use tokens to realize price transmission, which really helps the machines improve efficiency. , but their value capture is far from being seen.

I have heard another particularly typical example, which is still a landing application. There is a factory that makes electronic locks, and its products are sold overseas. In order to provide convenient services, the factory needs to deploy servers all over the world and provide third-party authorization (Google, Facebook, etc.) access methods. A realistic problem that needs to be considered is that if the server crashes, or the three-party authorization fails, you will not be able to enter the house. In addition, in this facility, the cost borne by the factory is also extremely high.

Blockchain can solve factory problems, reduce costs and increase the risk of resisting single point of failure. All verification services can be verified through the blockchain without going through a centralized server and using blockchain nodes, so that the factory does not need to set up and maintain servers by itself. At the same time, due to the characteristics of the blockchain, authorized logins will be replaced by decentralized IDs, and failures will not occur.

Sounds like an example of a perfect application, right? If it is a pure currency model project, this application should bring an increase to the currency price, but in the Token economic model of the current blockchain project, this value is rarely captured, or even missing. Another problem is that there are too few examples of this combination with entities.

03

A well-known investor in Tokenfund said: Many blockchain projects are indeed helpful to society, but many projects have no value capture model at all, and are purely for charity.

In the bear market until 2019, new blockchain projects are all talking about value capture. In fact, they are telling the story of how people invest in a Token to gain benefits. This story sounds simple, but it is difficult to implement, especially in today's lack of new users. People have discussed the value capture of the public chain, basically starting from the application scenario. If the Fee model collects taxes, it is essentially the same as directly isolating users. However, in addition to the Fee model, what the public chain can do is ecological construction, but All public chains are talking about ecological construction, and the competition is not normal. Up to now, the value capture of public chains is still a problem.

Application projects, non-public chains, especially Defi applications, are currently verifiable profitability models. Decentralized protocols such as MakerDAO and Compound have implemented some tax policies, although there is no actual data to calculate profits. However, according to the current development situation, the increment is expected for future profits. Stafi Protocol itself is an application-oriented project. It has been thinking deeply about the value capture of this area. It collects reasonable taxes from users during the process of providing liquidity, and then feeds the taxes back to users. It depends on the situation. A more reasonable business model.

This model is similar to the national money-printing-tax policy. For example, the state pays more attention to the funding of small, medium and micro enterprises recently, printing money to support loans with lower interest rates. With the development and growth of small, medium and micro enterprises, and then returning the money to the national treasury through income taxation, etc., to realize the real economy. effective assistance.

Feeding tax profits back to the ecology, developing the ecology after the relay, and then contributing to the system is a more plausible story in the current circle, which is also a driving force of business thinking. After all, we can't always live in a circle full of fantasy. In that case, the blockchain will not grow up, and neither will the project.

Of course, the business model of blockchain projects will still be innovative. On the road of exploration, the fear is not that there are no ideas, but that there are no people. It just so happens that there are too many top talents gathered in the blockchain, which is the hope for the future.