TLDR; A simple interface that lets users tie the value of a digital token to a specific real world metric. For example, say you want to increase solar energy usage. You pick the metric “cost per kWh,” tying that cost to the value of your token so that when the cost per kWh decreases, the token value increases. Token holders now have a financial interest in that metric. As another example, say you want to decrease malaria deaths. You pick the metric “deaths from malaria per year” and make the token’s value a function of that metric so that when annual malaria deaths decrease, the token value increases. You could even tie a token’s value to research outcome metrics as a way to derisk basic research. The premise of these “single purpose tokens” is to create a financial model for changes that people want to see in the world that are not incentivized by the existing fiat economy.
Post 23: Single Purpose Tokens
Post 23: Single Purpose Tokens
Post 23: Single Purpose Tokens
TLDR; A simple interface that lets users tie the value of a digital token to a specific real world metric. For example, say you want to increase solar energy usage. You pick the metric “cost per kWh,” tying that cost to the value of your token so that when the cost per kWh decreases, the token value increases. Token holders now have a financial interest in that metric. As another example, say you want to decrease malaria deaths. You pick the metric “deaths from malaria per year” and make the token’s value a function of that metric so that when annual malaria deaths decrease, the token value increases. You could even tie a token’s value to research outcome metrics as a way to derisk basic research. The premise of these “single purpose tokens” is to create a financial model for changes that people want to see in the world that are not incentivized by the existing fiat economy.