The Baseline Protocol Tokenomics Review and Rating (SVET)

baseline

Naturally, faced by draconian laws, which do not draw a clear line (quite deliberately, I would say) between security and usability tokens and treat them, essentially, the same old-fashion way, corporations universally avoid mentioning “Tokenomics” in their systems’ blue-prints. BP is not an exception.

However, as it comes to review a DLT company which doesn’t issue its own coins / tokens there’s always the question to be asked: are there enough economic incentives left for multiple participants to assure their active participation in its internal micro-economy and to maintain an incorruptible consensus?

After all the main idea behind BP is to establish and to maintain an effective cross-companies-borders exchange of sensitive economic and financial data (without breaching key secrecy and confidentiality internal protocols) in order to achieve measurable gains in productivity, efficiency and quality controls.

The example used in Radish34 demo is, not surprisingly, ‘the supply-chain’, as it has already became a cliche in our industry. Yes, theoretically speaking, all actors — BP participants — would want to deal with the most effective suppliers of the best components available on the market. However, on practice, such purely economic, long-term benefits are often disregarded in favor of banale bureaucratic considerations of convenient ‘partnerships’ with already familiar market players.

Additionally, without participants being immediately financially penalized for wrong choices / actions, it’s not clear how an optimal consensus might be reached between them on a question, for example, which of newcomers must or must not be included into the suppliers list, etc.

Not to mention, of course, that, very often, the price / delivery time differences between procurement agents are so insignificant that it’s much simpler just to make a long-term agreement with one of them for a full range of supplies rather than to spend your time and energy trying to split hairs while ‘playing’ with BP.

That’s, basically, why, when I can not clearly see how BP would motivate its members (and, btw, its investors), I start to questions BP’s internal economy long-term stability (“Sustainability” is “c”) as well as its ability to produce the real financial value for all involved parties (“Value” is ‘c+’), except, possible, some minor gains on data storage / transmission sides (‘Transactions’ is ‘b-’).

Usually, after an initial spark of enthusiasm among corps execs, enhanced by external consultants, it leads to quick disillusionment and abandonment (“Engagement” is “c+”). Unless, of course, it wouldn’t immediately lead to spiking corps shares prices, as it was famously the case in the fall-winter period of 2017.

Result for “Tokenomics” (Micro-Economy): Sustainability (project’s economy long-term stability) — Value (coins / tokens long-term value) — Engagement (potential number of coin / tokens users) — Transactions (cost and ease of transactions): c/c+/c+/b-

For the original version of this article, please, refer to: http://svetrating.com/rating_text/30/tok/

Link (Radish34 explained): https://docs.baseline-protocol.org/radish34/radish34-explained

Image: Le Labyrinthe de l’amour, Tintoretto

What Is SVET Rating?

SVET Rating is the first public praxiological (human actions driven) rating. It takes into account combine effects of cognitive, emotional and social factors on the decisions of individuals and institutions dealing with crypto currencies and blockchain projects. Uses S.V.E.T. Metrics = System + Vision + Execution + Tokenomics. Includes 16 parameters. Accounts for main drivers of public behavior: technology, economy, organization and psychology. Integrates insights from independent experts and everyday users

  • Security (safety): for defenders (
    - The Protector: Warm-hearted and dedicated, they are always ready to protect the people they care about.
    );
  • Velocity (scalability): for megalomaniacs (
    - The Commander: Outspoken and confident, they are great at making plans and organizing projects.
    );
  • Engineering (design): for geeks (
    - The Architect: High logical, they are both very creative and analytical.
    );
  • Transparency (decentralization): for crypto punks (
    - The Crafter: Highly independent, they enjoy new experiences that provide first-hand learning.
    );
  • Singularity (uniqueness): for individualists (
    - The Artist: Easy-going and flexible, they tend to be reserved and artistic.
    );
  • Volume (market): for globalists (
    - The Performer: Outgoing and spontaneous, they enjoy taking center stage.
    );
  • Empathy (enthusiasm): for tribes (
    - The Persuader: Out-going and dramatic, they enjoy spending time with others and focusing on the here-and-now.
    );
  • TimeLine (road-map): for visionaries (
    - The Mediator: Idealistic with high values, they strive to make the world a better place.
    );
  • Solution (business): for dealmakers (
    - The Director: Assertive and rule-oriented, they have high principles and a tendency to take charge.
    );
  • Validity (legality): for lawyers (
    - The Inspector: Reserved and practical, they tend to be loyal, orderly, and traditional.
    );
  • Equity (finance): For venture capitalists (
    - The Advocate: Creative and analytical, they are considered one of the rarest types.
    );
  • Team: for friends (
    - The Caregiver: Soft-hearted and outgoing, they tend to believe the best about other people.
    );
  • Sustainability (stability): for sages (
    - The Thinker: Quiet and introverted, they are known for having a rich inner world.
    );
  • Value (venture): for adventurers (
    - The Debater: Highly inventive, they love being surrounded by ideas and tend to start many projects (but may struggle to finish them).
    );
  • Engagement (usability): for pragmatics (
    - The Giver: Loyal and sensitive, they are known for being understanding and generous.
    );
  • Transactions (speed): for travelers (
    - The Champion: Charismatic and energetic, they enjoy situations where they can put their creativity to work.
    ).

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