Token Economics: Sustainable Business Models

Event Information

Share this event

Date and Time



Ethereum Classic Labs

111 Ellis St 2nd floor

San Francisco, CA 94102

United States

Event description
Discussing existing and projected business models for decentralized tech projects.

About this Event

UPD. The event is happening, it's not cancelled!

The rise of decentralized tech launched the next wave of innovative projects and fundamentally new markets. However, it soon became apparent that its full potential could not be reached by mimicking the existing business models. More thorough research was required to discover new capabilities of providing lasting and sustainable value.

At this meeting, we will focus on the results of this research and present the models and cases that have the potential to succeed in the environment of the future economies.

19.30 - Doors opening. Drinks & snacks

20.00 - The Right Token Model for the Decentralized Cloud. Evgeny Ponomarev, co-founder, Fluence Labs

20.15 - Nervos CKB: A Layer 1 Blockchain (Token Economics). Kevin Wang, Token economics researcher, Nervos Network

20.30 - Layer 1 support for distributed applications monetization and predictable transaction costs. Illia Polosukhin, co-founder, NEAR protocol

20:45 - Panel Discussion led by Lasse Clausen, 1kx network.

21.30 - Drinks, food & networking

Huge thanks to our friends at Ethereum Classic Labs for hosting us!

The event host is Tannr Allard. Tannr is a software developer at Nervos Network. He’s interested in improving developer education about blockchain technology by combining technical, systems, and economic ways of thinking.



Crypto made possible to organize networks of independent service providers into efficient markets by eliminating intermediary bottlenecks. Utility tokens serve as a reliable medium of exchange, as staking mechanism, and usually, there is a certain token distribution which is expected to bootstrap the usage in the network. However, as many projects face that such a design isn’t efficient enough to drive adoption. Done right, the token model can align incentives of all involved parties: users, service providers, and investors. It also can incentivize the early supply & demand, and protect from centralization or forking.

Well-known “medium-of-exchange” (MoE) or “work token” fail to achieve that. The MoE model adds excessive frictions for users and creates almost no incentives to hold the token for investors. The work token does incentivize the supply side but not the demand side, and tends to end up with stake centralization.

We managed to build the “lock-to-pay” model for the decentralized cloud which makes the cost of renting miner hardware very low for users, but attractive to miners;

tightly integrates investors into the loop by incentivizing them to lend tokens for staking in order to earn some interest; and

protects from cartels and price manipulation by keeping always low entry barriers for new players

This model might also be adopted for other p2p marketplaces.


A public blockchain system creates a two-sided market. The suppliers of this market are miners and block producers who provide different resources to the system, including computation, bandwidth and storage resources. The consumers of the market are users and developers who consume these resources for developing or utilizing applications on the blockchain.

This talk introduces how this market works and what are some of the problems. Furthermore, how can these problems be properly solved by designing the economics model of the native token on the blockchain, especially in the context of a Layer 1 blockchain that serves multiple Layer 2 systems.


Block rewards, transaction fees and storage fees are paid in a native token called NEAR. While block rewards are dependent on inflation, transactions fees and storage fees have a fixed price, for either gas (to process the transaction), or per byte of data stored. These prices will be set via community governance processes. Because the network can expand and contract with the number of shards, this fixed fee allows validators to decide whether to contribute to the network based on the current demand for validation.

Fixed pricing makes it easier to budget for running your app based on its current and future usage.

Date and Time


Ethereum Classic Labs

111 Ellis St 2nd floor

San Francisco, CA 94102

United States

Save This Event

Event Saved