Token Economy-Factors that define it; Sustainability ?

Token Economy-Factors that define it; Sustainability ?

  • Token Economy and sustainability problem of mankind!
  • The answer about what a token economy is? will always differ with the difference in the factors accordingly.

Talking about the factors which can make a difference in defining the meaning of the token economy- depends on the perspectives of individuals. these perspectives are- Technical, Fungibility, Transferability & Durability. So basically token is not a new thing/word it has been heard and used for ages before in the world.

Token economy is a market where one individual can transfer its ownership to others, with the help of third party/intermediaries. But using blockchain we can eliminate the involvement of intermediaries and hence, the cost of transfer of assets are also reduced.

Economy means, in a state market: where consumption and production is done for the exchange of money. Therefore token economy is where- transfer of assets ownership is done in the exchange of tokenization.


Blockchain helps in digitizing the token economy. The same principle is done to tokenize assets in digital assets. Just like blockchain uses the digital way to transact and eliminate  third parties for increasing the cost of transaction.

Documentation with a hash key, allows you to allocate your document, your assets and record of transactions. The biggest advantage of blockchain is that it can create a  ‘claim’, which is free from backing real values.

Now what is the speciality of Token-its fungibility, durability, incentive, tokenflow, regulatory, transferability perspective, these are few specialities of tokens. Tokens are not  new for the economy, it has always been a part of the economy. 

Tokenization and blockchain are not the only solution for the high-value assets. It can also be used as an Event-Ticket. Eventticket is a kind of token which allows you to enter a place for the event, likewise tokenization can also be used in order to manage the value of the token.


It is not easy to ignore the fact that human injustice is very common in the whole world.

The societal injustice and historical humors about mankind is very known. Sustainability is using the resources in the present without affecting the future needs. 

The major understanding part of sustainability is that when you start a business you start from the one point and the amount you generate or receive is not enough even for your business sustainability. 

And therefore you need to develop accordingly for the long time survival process. Similarly, when you are new to token economy and blockchain you can not expect the same in sustaining.

Success in token- blockchain;

In order to be successful in the field of blockchain, it does not only depend on protocols or their implementation, it also takes efforts in their implementations and their developments towards various groups and finding the right ways to develop security and transparency.

In blockchain Smart Contracts are used to bind the parties and form the rules and regulations that should not be broken and should be followed by both the parties. This contract acts like a  government rule engaged in between the contract.

Token holders have various kinds of tokens, one of them in utility token– as per the name utility token is the token, which is used to pay utility fees, voting fees, transaction fees, etc. As in the blockchain economy , users pay less when they grow more in the blockchain economy.

Wrapping it up- in this blog you will understand how token blockchain is related to the economy and how sustainability can be done. In this blog you will understand the features of the tokenization and you will find the points like utility token which is a type of token used in the blockchain.