# 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](https://3035362353-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FcdlNgmirFVO6p9w35Xox%2Fuploads%2Fgit-blob-27e0a98b2ac82ac92e474036b43ff4b244d1352b%2Fdying-ip.png?alt=media)

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](https://3035362353-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FcdlNgmirFVO6p9w35Xox%2Fuploads%2Fgit-blob-265ed5cd568aec13d19f05bf043e40f9d671df78%2Fgrowing-ip.png?alt=media)

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