“Tokenomics” describes the math and incentives governing crypto assets. It includes everything from the back-end methods and structures of how the asset works to the psychological or behavioral forces of users and investors that could affect a crypto asset’s long term value.
Projects with well-designed tokenomics are much more likely to have long term success and staying power because they’ve incentivized buying and holding their token.
Projects with poor tokenomics are often doomed to fail, because people rapidly sell the tokens at any sign of trouble/
1. Summary of the company/token/coin
· Powerledger Rank #171 on 3/4/22
§ Australian technology company that has developed a blockchain-enabled renewable energy trading platform. The company has built a series of products to enable energy trading, renewable asset financing and more efficient carbon and renewable energy credit markets.
· Chainlink: Rank #23 on 3/4/22
§ Chainlink is a blockchain abstraction layer that enables universally connected smart contracts. Chainlink uses a decentralized oracle network to permit blockchains to securely interact with external data feeds, events, and payment methods. This is critical for complex smart contracts because they need off-chain information to execute.
§ Chainlink was one of the first networks to enable off-chain data integration into smart contracts.
· TerraUSD: Rank #13 on 3/4/22
§ TerraUSD is a decentralized stablecoin running on Ethereum which aims to maintain a value of $1.00 (one US Dollar). Unlike centralized stablecoins, UST isn’t backed by US dollars in a bank account. Instead, in order to mint 1 TerraUSD, US$1.00 worth of TerraUSD’s reserve asset (LUNA) must be burned.
· Secret Rank #90 on 3/4/22
§ Secret is the native coin of Secret Network, a data privacy focused blockchain for smart contracts, which permits users to build and use applications that are permissionless and privacy-preserving. This functionality protects users, secures applications, and unlocks hundreds of never-before-possible use cases for Web3.
· Wax: Rank #108 on 3/4/22
§ Wax is a purpose-built blockchain, for e-Commerce with fast transactions and no fees. It is the host of its own DApp (decentralized app) marketplace and NFTs can be built on it. It has no gas fees. Users stake their wax as resources. By Staking Wax, they are increasing the scarcity of the token and proving the power of the blockchain.
§ It is carbon neutral and uses 222,000X less energy than its closest competitor.
2. What is the purpose of the coin?
· Powerledger
§ Power ledger is used to enable electricity transfers. Using hardware and an app, participants can trade "sparks" which are backed by a blockchain bond called power tokens. The platform makes trading electricity easy, frictionless, and instantaneous.
· Chainlink:
§ Chainlink incentivizes a decentralized global network of computers to provide reliable, real-world data to smart contracts, which are pre-programmed agreements to automatically execute if certain conditions occur.
· TerraUSD:
§ TerraUSD is a tokenized version of the US Dollar backed by real assets in the form of real estate, stocks or other hard assets. The purpose of TerraUSD is to provide stability in an investment environment that is currently volatile.
§ It can allow people who are looking to invest in cryptocurrency but are not sure about the volatility to feel confident that their money won’t be lost. It also benefits people who want to make international transactions but don’t want to worry about fluctuations in exchange rates because they know it will always be worth the same amount no matter what country they are sending it back to.
· Secret:
§ With blockchain technology, we have the potential to create a more empowering and inclusive internet - what is often referred to as Web3. But current blockchains are public by default, exposing all data to everyone and putting users at risk. To enable meaningful use cases and achieve global adoption, users and organizations need control over how their data is used and shared - a concept referred to as "programmable privacy." Secret’s purpose is to enable programmable privacy.
· Wax:
§ The purpose of wax is to make e-commerce transactions faster, simpler and safer for every party involved.
3. What problem/pain point is it trying to solve?
· Powerledger:
§ People want to trade excess energy locally. Traditional Energy Distributors were a one-way street – Large Scale Power Stations pushed electricity through networks to consumers at set prices.
§ The future of energy is little more complex with power stations virtually on people's roofs buying and selling energy with energy flowing in multiple directions between consumers and generators. The people who produce electricity get a more realistic price and people who consume It get a much better deal.
§ xGrid
o xGrid is an energy trading engine enables peer-to-peer trading of energy generated from solar panels to other consumers within the grid while providing real-time pricing.
§ µGrid
o µGrid is for energy tracking and trading within embedded networks & microgrids such as a single apartment building/complex or shopping center with co-owned energy assets.
§ Vision
o Vision helps ensure transparency of energy sources to ensure they are truly green. Vision allows end consumers to choose their energy mix based on the type, source, location and amount of energy they consume.
o The Vision platform integrates with smart meters to track the energy generated by assets of any size and capacity and location automatically, guaranteeing traceability of energy right back to its source.
· Chainlink:
§ Blockchains are inherently closed off from the rest of the world for security and integrity but that limits the input data they can accept. Thus, a bridge needs to help these systems see what is happening in the outside world. The input cannot come from a single source so that it is decentralized and more secure.
§ Chainlink is a decentralized oracle network which incentivizing data providers ( “oracles”) to act as a bridge between blockchain smart contracts and external data sources. Every oracle within Chainlink is incentivized to provide accurate data since a reputation score is assigned to each and when nodes follow rules and provide useful data, they are rewarded in LINK.
o Most oracle networks work with multiple data providers and require tokens to be staked to prevent fraudulent data into the blockchain.
§ Chainlink was launched on the Ethereum but can work with other blockchains, too.
· TerraUSD:
§ Stabile pricing and equivalent to the US Dollar
· Secret:
§ Nodes on Secret (known as secret nodes) can perform generalizable computations over encrypted data, which allows smart contracts (known as secret contracts) to use private and sensitive data as inputs. Secret Network's focus is on computational privacy, not just transactional privacy. This privacy functionality of Secret is critical for many fields, including decentralized finance, Web3, machine learning, access control, and many more.