The Tokenomy

a. power dimensions

A currency value is derived from exchanges.
Therefore, the most valuable currency is permissionless by design.
Thereby, it offers the most potential for exchange.
The designer of a currency gains control over underlying price systems.
They include issuance, internal exchanges and regulations.
They form together a protocol backed by a currency.
The currency is subdivided in fungible tokens.
The protocol cannot legislate freely without its own currency.
On the one hand, system independence determines a new currency creation.
On the other hand, system integration does not require a new currency.
It is counterproductive to create a currency when it is not required.
A currency creates many pitfalls to avoid.
Without the guidance of a necessity, pitfalls are embraced.
As a result, wealth is extracted rather than cultivated.
For greed is always second-best, a lack of prospect sells sustainability.
The token issued within a protocol is a protectionist border.
It encircles a self-contained and autonomous ecosystem.
In its ecosystem, a native currency manages resources freely.

Ecosystems can compose other ecosystems.
A federation of currencies forms another dimensional ecosystem.
The forex is an ecosystem made of fiat tokens valued through price rates.
The value of fiat amounts is constant across any two exchanged currencies.
The forex fungible token is this value denominated in any currency.
In this sense, different currencies are fungible.
Fungible tokenomics bestow undifferentiated value on protocols.
Conversely, non-fungible tokenomics bestow unique value.
Tokens carry exchanged value to diffuse it throughout parallel ecosystems.
Fungibility carries undifferentiated value regardless of denomination.
A token acquired for fiat or another can also transact in its own system.
Currencies carry out exchanges in multiple dimensions.
Hops of value between dimensions achieve horizontal distribution.
The initial value storage of an exchange isn't integrated at destination.
This enables parallel innovation in fully-controlled systems.
The one-size-fits-all issue of a single economy is resolved.
Micro and macro limits of economics disappear in parallel dimensions.
Markets are gates to different price systems.
Tokens are tickets to new dimensions.

A national currency attempts to guard markets within borders.
Currencies englobe ecosystems to preserve the valuation of resources.
Token protectionism embeds the value threatened by foreign exchange.
It facilitates all peer exchanges determined by internal price systems.
They govern a resource within ecosystemic borders.
The token is effectively a versatile form of share in an ecosystem.
The market price of a token measures its ecosystem utility.
The token protects the ecosystem too well.
State regulators can only regulate exchanges on external interfaces.
Aggressive regulation of interfaces incentivizes token holders to hodl.
They develop native alternatives to decrease external reliance.
Non-tokenized services rely on skin-above-the-game regulations.
They are less aligned with distributed user interests.
Internal change systems incorporate future-proof adaptation.
A metaverse escape is very tangible for most stringent governments.
Autonomous citizens cohabit with lean states.
Tokens liberated the future of regulation.
Speculation aside, every lasting token drains resources with it.
Value migrates from the least to the most promising tokenized future.
Growing resources magnify power scope.
The token is the protecting and ruling power of a protocol.

Ownership Myth

b. connected personality

In a parallel economy, experiments have been blazing a new trail.
It leads towards a reconciliation of governance with participation.
More recently, a wild ramification, a NFT craze, has left many wondering.
Is it temporary or an integral part of the initial crypto agenda?
Two intertwined traits stand out to agree that fundamentals are ripe.
There is more to develop than what we believe.
At first, a collection endows a unique artifact with significance.
Unicity finds value in plurality.
In our current understanding, a NFT on its own isn't worth much.
Outside a bigger whole, it cannot convey a relatable myth to its buyer.
Yet, the owner of a NFT can still project personal aspirations.
They're mirrored by unique features of a common design denominator.
The interplay of shared beliefs creates a ground for mutual consideration.
Added subjectivity gives rise to a value differential.
Buyers and sellers are willing to discuss through a predefined protocol.
Various opinions interact within a negotiation process.
They seek to reach a quantified and mutual understanding.
Even if markets could have been tricked within a priced exchange;
they do not make the predisposition to engage with a NFT less relevant.

Liquid Identity

c. precious mechanics

A mechanism assuming the provision of liquidity creates staking growth.
The Tokenomy expansion is all driven by Collateralized Liquidity.
This dimension measures DeFi growth better than Total Value Locked,
which attracts CeFi funds with trends of vanity metrics.
At the end of the day, a tokenomic success won't be measured in fiat.
It won't be made out of thin air but will be backed by liquid collaterals.
Aave and Uniswap address both illiquidity in different price systems.
Tokenized protocols free value trapped in missing or controlled systems.
We'd all be much richer if we did not own more value but unlocked it.
Saving gluts give the scale of the loss in working capital.
Cash-trapped value is begging to be tokenized.
Fungible means of exchange can only represent normalized commodities.
This goes against the very nature of what makes something unique valuable.
Tokens are the future of currencies and the end of conformity.
Non-fungible wealth, identity and regulation have yet to become liquid.
Policy swaps will deprecate banks and passports.
The magic of NFT is in the last letter because it exchanges the first two.

The NFT magic happens when non-fungibility becomes liquid.
Social validation of singularity synergizes prices upwards in a community.
It confers to the NFT a soft power superior to self-expression.
Recognition of a difference personalizes shared opportunities.
The NFT protocol opens up a single prospect into limitless variants.
The alliance between identity and belonging can be leveraged further.
Meaningful domains face the pattern of the particular in the disjointed.
NFTs unite ensembles without overarching authority.
They could become a tool to alleviate confrontations.
Social contracts guaranteed by general will have now been engineered.
They were unconventional in 1762, when Rousseau first brought them up.
Hobbes Leviathan isn't a fate anymore but a collective choice.
The network aristocracy, also known as the Netocrats, might disagree.
They will change their mind because they cannot rule a global empire.
Technological advantage lost the exclusivity.
Non-fungible tokens added human recognition to mechanical lines of code.
Smart contracts are now more palatable to variety in a wider audience.

Tokenized Jurisdictions

d. NFT intermediation

A system of partial, liquid and tokenized jurisdictions seems promising.
Policy markets offer live and multiple-winner votes on legislation.
Relative governance solves acute political issues rooted in absolutism.

Absolute differences and relative equalities define NFTs and FTs.
Denominations are not interchangeable but currencies are exchangeable.
Scale matters to examine what a token represents: a share or an identity.
Currency is a NFT among commodities; a distinction in a homogeneous group.
Denomination is the NFT of currencies; an identity of exchangeable tokens.
Amount is the NFT of a denomination; the unique value in a set of coins.
The singular is a NFT among the up and down plural.
A NFT is a NFT within a collection but also among its own fungible shares.
A NFT is the representative of a lower distribution in a higher assembly.
This intermediation joins parts and keeps them together in an ensemble.
Fungibility lowers the scale of distribution; the opposite is also true.
Decentralization deconstructs non-fungibility into fungible bits.
Centralization constructs a non-fungible ensemble from fungible bits.
Macroscopic governance scales down to microscopic and equal agents.
The atom is the bottom of decentralization but also the body of another.
The body is the top of centralization but also the atom of another.
The design of a token fungibility is always a change of scale.
The direction of the intended change determines the fungible quality.
Scaled intermediation oscillates between fungibility transitions.
Decentralization without recentralization does not improve governance.
A conflict resolution is a NFT deconstruction and reconstruction.
The final arrangement is as unique as the allocation of fungible tokens.

Territorial jurisdictions are mutually exclusive.
On the contrary, tokenized jurisdictions share territories.
Decoupled from the land where people live, jurisdictions are traded.
They cannot be imposed.
Like borders, tokens delimit jurisdictions;
and unlike empires, they market regulations.
In the land-based world order, governance tokens apply to border zones.
At least two jurisdictions must rule for policy shares to have any use.
When sided foreign policies fail to agree, borders turn confrontational.
They lack a justice mechanism to diffuse tension.
Policy markets succeed between peers where dominant institutions fail.
Two free-thinking populations sharing a border is worth considering.
This naive view illustrates the resolution of polarization within borders.
Each individual can only be governed by a single policy in every matter.
Free choice is mostly determined by an individual's residency.
Countries offer pre-packaged policies.
Free individuals move their affairs where they see fit.
Countries regulate and individuals migrate.
Policies' markets have already been in place for as long as globalization.
The Estonian e-residency program is experimenting with a different scheme.
What if countries export their regulations, instead?
When they have a choice, individuals stay where they feel they belong.

One of the Estonian value propositions is cash accounting administration.
It is quite an innovation within the prevalent accrual basis worldwide.
Profits are not taxed when realized but when distributed.
- A sexy feature for companies working on several year research cycles. -
The Tokenomy goes further than innovative regulations.
It is also liberating policy markets from national administration.
Tokens replace citizenship and residency to allocate shares of regulation.
Individuals govern each of their matters in any jurisdiction they like.
If this was not enough, individuals can also program public laws.
Tokenized jurisdictions provide Law Programming Interfaces (LPI):
specialized Application Programming Interfaces of self-executing laws.
They offer on-demand smart contracts and bespoke public regulations.
LPIs can be more or less restrictive:
from ready-made policies offering varying degrees of responsibility;
to minimalist checks and balances, which integrate with free protocols.
The integration makes free protocols compliant with the LPI authority.
Governing authorities decentralize legislation in tokenized LPI rights.
After a vote, populations lose control of elected representatives.
Democratic representation rules only the accession to power;
which is then unleashed until the next election.
Tokenized policies couple representation with legislation, instead.
Unlike political governance, utility tokens govern the protocol.

A popular split is for utility tokens to govern the actual protocol;
and governance tokens, its future ramifications and instantiations.
At first glance, protocols finance their own fork, called a new version.
Governance tokens capture the brand value of a protocol for shareholders.
Buying votes has long been called a fraud when public utility comes first.
Governance tokens are just big business.
Regular users vote when they swap protocols, instead.
They drive the price of utility tokens and the policies they represent.

just imagine

A border is tokenized in a NFT collection.
The collection is composed of two flags owned by respective populations.
Residents own fungible tokens of the flag where they live.
Non-fungible flags intermediate between a border and two populations.
Both sides are inclined to talk to recentralize a consensus…

One side:

We have a line in common but we see it differently.

The other:

Better we do not write down how we want to manage this line together.
Let us multiply arrangements so shareholders can freely renegotiate.

The answer acknowledged, a market of agreements seemed promising:

Yes!
Bad times disregard what has been written in good times.
We would rather govern at all times.

Each flag exposes a foreign LPI to other nations.
Individuals or states are free to interact and enter political agreements.
A transaction with a foreign LPI requires foreign fungible tokens.
Resident tokens must be exchanged for foreign tokens beforehand.
And a stake must be deposited to guarantee enforcement.
The foreign stake is usually deposited by a government for its citizens.
Live enforcement of policies removes the need for identity verification.
Dissident foreign policies are legally possible without repression.
LPIs provide apolitical cross-border services.
They also remove the need for national identity in foreign policy-making.
Individuals do not have to follow their own state directives.
The foreign jurisdiction is then no different than free protocols.
It could run as well, if not better, on a programmable blockchain.
A market and a token exchange give access to a different jurisdiction.
A sold citizenship token acquires the right of a foreign power regulation.
Tokenized jurisdictions rule for the people of the world.

Markets of foreign policies do not succumb to the tyranny of the majority.
When a nation does not back a foreign policy, individuals are still free.
They can stake their own responsibility to choose an unendorsed policy.
The foreign LPI is always ready to accept deals with willing individuals.
The home state does not facilitate all conducts to preserve the consensus.
Digital transactions enforce appropriate contracts.
Personal token allocation is tied to a system of rules.
Foreign policies bypassing sanctioned LPIs are also allowed.
But residents of each side must then first enter a bilateral agreement.
This creates a market of alternative policies.
They are regarded as private bilateral contracts by the authority.
Private entities are allowed to override the public agreement.
Should they agree to do so across a border, domestic laws still prevail.
Bilateral contracts can be promoted to endorsed policies.
National LPIs reward the design of innovative foreign policies.
Or alternative jurisdictions can grow peacefully within a state.

time to stop dreaming

That is how economic and tokenized jurisdictions already work today.
But only a central authority can face or resist another.
Decentralization must recentralize administration to safeguard liberties.
The top and the bottom of governance aligns and stabilizes each other.
The price system of a policy market controls otherwise free upper hands.
Nevertheless, we have enough material to be skeptical of such schemes.
Speculative tales and negative connotations of markets abound.
At odds with sensationalism, let us recontextualize drama in statistics.
Disturbing trades stand out of the most encountered distribution.
Outliers and Heads of state make good stories.
We want to see heroes to incarnate our inspirations;
and villains to find a culprit for our misfortunes.
On the contrary, deals should work for ordinary people.

The Heads of each side of the line introduced foreign LPIs as such:

Would you rather be governed by policies or politicians?
The government won't give up on its supranational responsibility.
Yet, you will be free to disagree and act accordingly.
Authority will be granted by tokens for the provision of desired policies.
Tokenized jurisdictions outprice lobbying in markets of free contracts.
We will generally agree to disagree on the specifics to govern together.

Markets, contracts, or even more markets of contracts enable exchanges:
the contribution of one another towards each other, fairly and safely.
Horizontal liquidity mitigates bias in crowdsourced influence.
In the stock market, retail investors have a greater say than CEOs.
Influencers or politicians seek to skew wealth for cases bigger than them.
Financial imbalance is partly tied to a Pareto distribution.
It provides vertical liquidity in a centralized world order when required.
But peace needs no expert knowledge and conflict even less followers.
We all deeply understand the consequences of weaponized battles.
When war is portrayed as a governing whim, stakeholders are good or evil.
In "War or Peace", war excludes peace and vice versa; there is no trade.
The success of "War and Peace" was made by an inclusive conjunction.
Surrounded by a collection of intents, borders get stuck in consensus.

Ruled Power

Tokenomic Fungibility

Fungible Tokens

Ownership Myth

Liquid Identity

Tokenized Jurisdictions