Consensus Economy of Tokens

Object Oriented Token

Similar with Object-Oriented Programming (OOP). Token technique of blockchains can be used to represent any object, singleton and factory design pattern can be used to define a token.

	Generate/mint once a time	Batch mint
Update once a time	Non-fungible token (NFT)	Partially-fungible token (PFT)
Batch update	-	Fungible token (FT)

Due to the high cost of blockchain infrastructure, token technique is always used to represent high value objects, which result in financial tools. Thus "transfer" function MUST be implemented in token smart contracts, which provides fluidity to the value the token represents. Anyway, usability of an object can be extend broadly. Other than "trust" value fluidity as use scenario, more use scenarios will bring more value to useable objects.

Consensus economy

A token can support both assetization (the value/cost of the object the token represents) and tokenization (control to the use of the object the token represents). This turns to be the "consensus economy" of tokens.

Token	Asset	Common Use
business logic	Assetization	Usability (tokenization)
marketplace	Secondary market	Primary Market
action(s)	To keep/transfer	To use/consume
sample(s)	The Mona Lisa	Mona Lisa T-shirts, Mona Lisa cups, Mona Lisa posters, Mona Lisa ...

An IP in Web3 follows the consensus economy.

$$\begin{cases} Value_{asset} &= \eta \cdot \sum_{items\_in\_use}{(consumed_{item} \times price)}+\sigma \\ Market_{IP} &= \sum_{asset}+\sum_{use} \end{cases}$$

For any IP, if all items (NFTs) are treated as assets, no more use scenarios.

$$\text{Asset as use scenario, }\\ \begin{cases} 1.&Value_{use} \downarrow \text{ due to lack of consumed items}; \\ 2.&Value_{asset}\downarrow; \\ 3.&Market_{IP}\downarrow; \\ 4.&\text{The IP is dying ...} \end{cases}$$

Dying NFT

If an IP contains items in both side.

$$\begin{cases} 1.&\sum{use} \uparrow;\\ 2.&Value_{asset} \uparrow;\\ 3.&\begin{cases} &\begin{cases} \text{More consensus, }\\ \text{ more use items,}\\ \text{ more use scenarios, } \end{cases} \\ &\sum{use} \uparrow;\\ &Value_{asset} \uparrow;\\ \end{cases}\\ 4.&Market_{IP} \uparrow; \\ 5.&\text{The IP is growing ...} \end{cases}$$

Growing IP

By this means, M4M is trying to find out more use scenarios for objects that tokens representing, metaverses and games are good candidates.