The Rationality of the Three-Generation Token Model from the Perspective of Tokenization Theory

On April 15th, 2023, Dr. Xiaofeng released the “Web3 New Economy and Tokenization” white paper at the Hong Kong Web3 Carnival, proposing a three-generation token model. HashKey explores the rationality of the three-generation token model and possible expansion directions based on tokenization theory.

The three main sources of value are: 1) non-financial assets. Non-financial assets represent productivity and are reflected in various input-output relationships in the real economy, satisfying certain production laws. 2) Currency. Currency has three basic functions: medium of exchange, unit of account, and store of value. 3) Securities. Securities represent the right to claim against other securities and are a representative of production relations.

The three main ways of tokenization are: 1) tokenization of usage rights, typical examples are encrypted assets represented by BTC and ETH; 2) tokenization of income rights, typical examples are Future Income based Tokens; 3) tokenization of ownership, typical examples are central bank digital currencies, stablecoins, green bonds, and electronic debt certificates of “blockchain + supply chain finance” with a current stock scale of over trillions of yuan in China. In addition, display rights can also be tokenized, and typical tokens are NFTs for pictures.

Tokenization of usage rights, ownership, and income rights: 1) Tokenization of usage rights. Tokenization of usage rights extracts usage rights from digital products and services and packages them into functional tokens, which can expand usage rights in an open-source, open, and non-permissioned way. 2) Tokenization of ownership. Tokenization of ownership essentially maps assets recorded in traditional ledgers to programmable ledgers on the blockchain. Tokens on the blockchain represent assets locked in traditional ledgers, and tokens on the blockchain circulate to represent asset transactions. 3) Tokenization of income rights. It separates a portion of future cash flows of a company or project (based on income or profit) and packages them into tokens for sale to investors and trading on the secondary market.


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