cryptoeconomics

🧵 1/ THE 7 FUNCTIONALITIES

The JCE Token Functionality Framework shapes a token’s role in a system’s economy and provides the foundation for thinking about value accrual.
🌐 indicates real-world comparables.

Governance Research at Lemma Solutions

| Co-founder of Just Cryptoeconomics justcryptoeconomics.com/

2/ Service Provision: Right to perform work or provide resources and earn fees

Participate in block validation ($ETH)
Indexing data ($GRT)
Transcoding video ($LPT).

🌐 Taxi medallions grant exclusive rights to operate cabs.

3/ Governance: Right to influence decisions

Voting on upgrades, setting economic parameters, allocating treasury funds, electing committees.

🌐 Equity shares confer voting rights in a corporation.

4/ Value Distribution: Right to share surplus

Protocol fee burns ($ETH)
Dividends
Buybacks/burns ($BNB)
MEV extraction ($JTO).

🌐 Dividend rights let shareholders share company profits.

7/ Collateral: Utility to stake or pledge for security or financial leverage
Validator staking ($DOT)
Borrowing on DeFi ($ETH)
Underwriting protocol risks ($AAVE).

🌐 Real estate used as loan collateral by banks.

6/ Payments: Utility to use as money

Gas fees ($BTC, $ETH)
Onchain commerce ($USDC, $USDT)
Cross-system settlements
Real-world payments.

🌐 Fiat currencies serve as legal tender for goods and services.

5/ Membership: Right to access perks

Launchpad allocations ($BNB)
Discounted borrowing rates ($AAVE)
Premium content/tools ($IP).

🌐 Country club memberships unlock exclusive facilities and events.