Token Economics Research at Fabric Ventures

When I first stumbled upon Ethereum in 2015, I was impressed by the idea of “programmable money”: the possibility to connect global, permissionless value transfer to the logic of unstoppable, decentralised algorithms. Smart Contracts enabled a completely new generation of digital applications with embedded payment features, revolutionising several industries from supply chain to insurance.

In 2016, while The DAO was being hacked and the early Ethereum community was taking hard decisions on how to go forward, I was trying my best to explain the potential of blockchain technology in simple words. The article reached over 400K views globally and was featured in Medium’s Home Page, proving the high interest in this new technological solution and the need for a better understanding of its mechanics.

Beside the turbulent activity of 2017 and 2018, the industry has matured substantially: signal is now stronger than noise.

Value driven projects have evolved and blossomed in spectacular infrastructure, protocols and thousands of applications used on a global scale.

Source: Gartner, 2019

Over the past years I’ve been monitoring closely the evolution of this industry, focusing mostly on real value generated by crypto networks. My core interests have been:

  • Token Networks Analysis of live projects to understand the economy each new token generates and its relative network agents behaviour;
  • Crypto Network Valuation Frameworks to understand how value is generated, captured and retained;
  • Token Design to align incentives among all network agents and focus on long term success.

The rise of DeFi is giving us strong signals of how blockchain technology can be leveraged to shape and re-build entire industries. Understanding its main trends and what entirely new services and business models arise out of this innovation wave is one of the most exciting ways to invest my time I can think of.

Source: DeFi Pulse

After multiple interactions with the team and portfolio companies, I am excited to join Fabric’s family to focus on token economics research. I will help portfolio teams assessing the dynamics and acting upon their crypto network economies. Among many other items, I’m fully aligned with the team on the Investment Thesis.

The Fabric Ventures Investment Thesis

We believe blockchain ventures should have a deep understanding of their token mechanics: how their token/dApp is used, by whom, and especially what metrics can be used to measure adoption and growth.

Many in the industry avoid speaking about the “big elephant in the room” – adoption – and I believe substantial adoption can only happen with strong delivery of tangible value for the current world we live in.

We need to re-focus on the value crypto networks generate, using a first principle approach, to foster real adoption and stimulate tangible growth.

Please feel free to reach out to me on LinkedIn & Twitter, or meet me at one of our Events🗓️

If you’re building a new piece of the blockchain industry we would be glad to hear from you. 🚀

For those who are considering investing in the new “internet of value” you can find more information on why we believe this is going to be the future here📈

To stay updated on all Fabric’s future blog posts and activity, sign up to our newsletter. ✉️

If you’d like to jump on the blockchain boat with us, Human Fabric is a great network to get started!

Token Economics Research at Fabric Ventures was originally published in Fabric Ventures on Medium, where people are continuing the conversation by highlighting and responding to this story.

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