Utility tokens will be the next big thing for real-world companies.
To adopt them, you need to know about tokenization.
And how to boost growth via the concept:
It means tokens as a replacement for actual money and banknotes.
Like Subway tokens and casino tokens in the real world.
With the public blockchains, anyone can create a token to represent anything of value, and trade it on an open network.
Tokenization can supercharge the growth of web3 projects, even though they’re not sustainable.
Nothing left in these products/projects if you take the token away.
The Ponzi eventually implodes.
The bear market gives breathing room for real innovations.
With viable products, companies that manage to integrate utility tokens into existing business models early will be rewarded.
Utility token has a clear usage within the product life cycle.
They offer holders access to products and services.
Simplest utility token use case is as a reward program.The more tokens users earn, the more they use the product.Tokens can then be redeemed for more products in the future.
Unlike traditional loyalty programs that set the discriminated pricing like Starbucks rewards and credit card points.Allow the points to have liquidity in secondary markets on public blockchains.
= token price x amount of your product 1 token can redeem for.It gives users stronger incentives to earn rewards: monetary benefits can be immediately cashed out.
Signup bonus is in token form.It gives out today's subtracts from tomorrow’s revenue.Users are redeeming tokens for the company’s products & services in the future.
You can also adjust the redemption ratio depending on the market prices of tokens/products.
i.e., X amount of tokens can be redeemed for Y amount of product.
It also helps set the floor price for your token and keep the price stable.
Tokenization increases the number of direct & indirect stakeholders.You need to build long-term trust in your utility token by aiming for a relatively stable price.So users’ incentive is to earn more tokens, not to expect tokens to appreciate.
And an asset of stable value can be incorporated into other financial instruments.It further extends your reach.
This thread is inspired by @TaschaLabs.
for mariel, here tascha’s profile pic should also be put in the first image. and with the word “Inspired by @@TaschaLabs ”)
Check out her original thread here: https://twitter.com/TaschaLabs/status/1542583782984716288
Tokenization is a powerful economic tool to drive growth.
But it won’t go far until integrated with good products and services.
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