Hi nerds -
I salute you from Miami, where every ad seems to revolve around crypto or tech.
Inevitably, my brain has been geeking out to Panama’s Crypto Law ever since it was proposed last Monday.
Building the base for e-governments, digital identities, regulated crypto transactions, and DAOs, I’m optimistic this is only the beginning of a decentralized future where corruption is less and less common.
Welcome to my crypto kool-aid 🧃.
3 brain farts
🎮 Game cryptonomics: Imagine you’re playing Mario Party and the tokens you gain throughout the game can be transformed into US dollars. Crazy right?
Well, that’s Axie Infinity for you. Backed by investors like a16z, Mark Cuban, and others, Axie Infinity is a Pokemon-inspired game built on the blockchain with over 1 million active users.
What’s most interesting about it is how it’s lifting people out of poverty in places like Philippines, Brazil, Indonesia, and Venezuela, where minimum wages can range from $50-200 a month. In Axie Infinity, you can make up to $500 USD based on the current Axie price. This number could very well go up based on the token’s value.
So, how does the token have market value? You pay 3 Axies (cryptocurrency) to enter the game. This makes people buy the token, which increases its market value as more people play. You then #play-to-earn more Axies throughout the game, which you eventually swap for BTC or ETH, or invest in a new tournament.
Axie Inifnity has been so successful, there's now 36 other games like this.
👩🏻🏫 Tokenized schools: Axie Infinity got me thinking about other industries that could benefit from this model - particularly in education.
Let’s imagine you pay 3 EDU tokens to join my school. Then, as you go through your coursework, rather than being rewarded grades, you’re rewarded tokens, which you can use to enroll in more courses.
If you’re a really good student, you pay for your education with your good work. If you struggle a bit more, you may need to add money to keep enrolling.
Additionally, we can implement a bounty model similar to what Gitcoin has built. Organizations set a bounty they’re willing to pay someone to complete x task. Students then complete the project for a reward and earn tokens, further funneling funds into the education economy.
RabbitHole is doing something similar.
🎫 NFT IDs: So far, NFTs (non-fungible tokens) have been mostly used to ensure digital art’s legitimacy.
However, there are alternative uses for a token that is unique and irreplaceable. I’m thinking of NFTs as a way to authenticate and authorize users across platforms.
Imagine a global unique identifier you use to access university transcripts, medical records, criminal information, you name it.. Because a NFT is unique to you, it would eliminate the need for usernames and passwords. It would also allow us to authorize certain NFTs to access certain information.
And with NFTs changing the game for authorization and authentication online, their value just increased significantly.
2 intellectual goodies
"Thanks to cryptography and economic incentives, users can now own truly sovereign assets, create fully sovereign entities, and build truly sovereign identities."
"For the first time ever, we have a transparent, immutable, programmable, substrate upon which to build new institutions. Institutions that cannot be corrupted even if their founders are.
It’s bad for intermediaries, and good for everyone else."
~ The Ultimate DAO Report, Bankless
1 funky audio
This podcast maps out the Metaverse economy by diving deep into game cryptonomics, even arguing they will become digital nations with their own self-contained economies.
Highly recommended if you want to geek out about the convergence between crypto and the Metaverse.
Thanks for reading.
As always, feel free to connect by hitting reply and sharing a juicy thought 💡.
We all help the curious community grow 🧠.