A. Token Economy

Tokenomics is more than 'token + economics'

The Encyclopedia of Personality and Individual Differences defines a 'token economy' as

"a system of behavior modification based on operant conditioning that utilizes systematic reinforcement of a target behavior. Tokens are given contingent on performance of the desired behavior, which then can be exchanged for reinforcers within a predetermined economy system." (Matson, Estabillo, and Matheis 2016)

This tells us that the portmanteau 'tokenomics' hides as much as it reveals. Over the last century tokens have been studied not as building blocks for creative economic infrastructures, but as tools of behavioural change. They entered the crypto lexicon after having travelled a long and instructive road from trade to education via psychology (Ayllon and Azrin 1968, Ayllon and Roberts 1974).

In this context blockchain projects may find it useful to ask: what sort of behaviour are we looking to change?