Cryptoasset investments manager and Holland FinTech member, Coinstone Capital, has published a series of articles about public blockchains, utility tokens and sustainable network effect generation. Coinstone Capital is an evergreen fund which invests in tokenised distributed ledger (DL) projects.
The latest instalment in this series is entitled ‘Sustainable network effects and public blockchains — the role of utility tokens’ and addresses the following topics:
- Current problems with networks;
- The role utility tokens can play in more sustainable network generation for public DLs;
- Creation and addressing the cold-start problem;
- Monetisation: tapping into value at the network level;
- The creation of a local economy; and asks
- Why can’t you use security tokens or even fiat currency for it?
“Tokenised public DLs is a powerful technology that provides the possibility to change the fundamental dynamics of network effect creation. These platforms impact billions of lives each day. This arguably makes any real and honest effort at better understanding how to use tokenised public DLs to make networks more equitable and sustainable a good environmental, social and governance (ESG) investment.”