Why Tokens Matter and How to Clarify a Path Towards Tokenisation

The organisation of tomorrow, despite differences in industry, location, products and services on offer, will all have one thing in common: they will use some sort of token as the key enabler to their business. Organisations have multiple options when selecting the type of crypto token. The token economics they opt for influences the likelihood of success for the organisation. Tokens are the fuel of the decentralised economy and William Mougayar, the author of The Business Blockchain and Managing Partner and Chief Investment Officer at JM3 Capital, describes a token as:

“A unit of value that an organisation creates to self-govern its business model, and empower its users to interact with its products while facilitating the distribution and sharing of rewards and benefits to all of its stakeholders.”

The usage of tokens in society goes back to antiquity and technologies such as Blockchain can dramatically reduce the cost of secure and trusted token exchange. The potential for tokenisation to disrupt existing interactions is huge – offering more efficient solutions to existing paradigms (e.g. crowdfunding, fractionalised ownership) as well as opening up whole new models for financing and collaboration. One clear example of a use case for tokens is in funding. While crowdfunding …

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