“What if somebody wants to climb Mount Everest?”

There are many ways that a token economy can be designed. One popular choice, for example, are bonding curves to reward early adopters. Here an algorithm ultimately determines how a system can evolve. When designing these types of systems, it is advisable not to have too many degrees of freedom, resulting in large, complex systems that make it hard to intervene should problems arise.

That’s why it makes sense to start from a set of first principles. These first principles are the physics of the system, under which everything else within the system is governed. When testing these assumptions, seemingly irrational behavior from Network participants shouldn’t be excluded. As Zargham put it during the video chat, “it takes a lot of energy to climb Mount Everest, but that doesn’t mean people don’t do it.” … Streamr Blog