@justinzhang

Fascinating talks by @eddy on Tokenomics Design at @a16zcrypto CSX. Here are my notes: Network Effect * Tokenomics is all about defining and reinforcing network effects. It’s crucial to outline core metrics tied to the network’s primary behaviors—where value is truly created. These metrics guide the incentives. * For example, in Uber’s case, core metrics might include rider wait times and driver utilization. Enhancing these metrics draws more participants, thereby strengthening the network effect. * Network effects differ from reflexive effects (e.g., price increases leading to further price increases), which are self-reinforcing but less sustainable. ⤵️

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