Token economy refers to the economics of goods and services that have been tokenized. In a token economy, blockchain technology is used to take physical assets, digitize them, prove their ownership, and potentially trade them.

Token economies refer to the economics of goods and services that have been tokenized.

In a token economy, blockchain technology is used to take physical assets, digitize them, prove their ownership, and potentially trade them.

There are four tools you need to work in a token economy .

#Documentation

It allows you to record all information about any asset and anchor its proof of authenticity on the blockchain.

#Tokenization

It adds a quantifiable substance to a digital asset.

Tokens can then be divided into fungible (divisible) and non-fungible (not divisible) categories

#Governance

It is what binds actions to conditions that cannot be broken

It is usually executed in the form of smart contracts on the blockchain and adds rules and restrictions to the use of tokens.

#Trading

Trading or value conversion is the last feature which, allows you to digitize everything and have all your assets in the same form.