The Biology of Token Networks with Thomas Rush

The Biology of Token Networks will propose a framework for recognizing patterns across token networks — which are fluid, dynamic systems — providing all web3 builders with more insight into the token design mechanisms that can be used to create successful protocols and networks in the future. As context, for years blockchain-oriented communities have been referred to as “ecosystems”, however, our understanding of these ecosystems is not commensurate with their complexity. There is a clear need for a more sophisticated understanding of the numerous, interdependent mechanisms used in the design of token-based networks. Token design as a discipline has been evolving for several years now, and the open, living resource presented during this talk will advance the discipline — helping it to mature beyond the first phase of experimentation, and evolve into a discipline with best practices, and eventually industry standards which are used for designing and engineering token networks. By creating a shared language and taxonomy of design mechanisms being used by entrepreneurs, developers, and designers, will be able to more effectively design for the outcomes they aim to achieve. Over the past 4 years particularly, there have been massive efforts to increase the shared understanding of token design and blockchain networks. The fruit of those efforts are often captured within incredibly thoughtful papers, blog posts, academic research, videos, and more. These long-form analyses often address the discuss mechanisms and actors in network in a very abstract, academic sense. Additionally, there has been massive progress in the field of blockchain analytics, with successful platforms such as Nansen, Dune Analytics, Chainalysis, and more. However, analytics products provide unopinionated data in bulk, which is generally not tied to the design decisions made in the development of the networks in question. As a result, the blockchain space overall has large amounts of structured on-chain data, and deep, nuanced theoretical works. However, when it comes to the task of designing crypto-native networks, there remains a huge gap between the theoretical and the empirical. The subject matter of this talk will aim to close that gap by defining a methodology for analyzing the specific mechanisms best suited to driving particular outcomes for token networks. Much of the information currently available to founders, engineers, and designers doesn’t provide data-driven insights into the mechanisms that have been used in the past across multiple protocols, why they were used, and what the outcomes were as a result. In this talk, I’ll propose a framework for capturing and analyzing this data across numerous token networks, establishing the venue for discourse about how organic, ever-changing token networks can be measured as it relates to token design. I expect this to be a foundational starting point, which allows web3 builders across the globe to build upon and refine over time. During the talk I’ll discuss the process of how I arrived at the proposed framework, and propose my view of how it could continue to evolve over time, along with ways in which individuals and organizations can contribute to its development as well. The initial framework and data set will consist of a database containing successful web3 protocols/networks, along with: - Case studies of each respective token design (Several case studies provided initially as examples) - Primary actors within each token network - Type of Project and the associated goals of the protocol / network - Mechanisms employed (Buy & Burn, Pass-through Yield, Voting Escrow, etc.) - Outcome of each token design, which may include qualitative factors or key metrics such as number of voters on proposals, token price, etc. - Scatter plot that exhibits the correlation between mechanisms used by particular networks and the metrics used to measure the success of those networks The ultimate goal of this talk is to create an increasingly valuable set of insights to be used in the emerging field of token network design and token engineering. This will be achieved through the open-source data and framework which the broader web3 community can contribute to and continually improve upon over time. https://twitter.com/Thomas_Rush_ Partner ConsenSys Mesh Thomas Rush is a Partner at ConsenSys Mesh, an accelerator, incubator, investor, and enabler of blockchain technology solutions. Thomas’ work is focused on token networks, DAOS, and the Mesh investment portfolio of 170+ positions. He is also an angel investor, board director, and advisor to early-stage technology companies. Thomas brings 15+ years of experience in innovation and technology. Before joining Mesh, Thomas led Client Services at Live Grey, served on the innovation and global business development teams at IPG Mediabrands, and co-founded Propeller, an impact-driven coworking space and business incubator in New Orleans.