Hello folks, today we shall discuss the rise of tokenomy especially in the context of Defi or decentralized finance. Specifically how the entire ecosystem has contributed to the rise of tokenomy. Token in a layperson's lingua simply means something that has a certain value attached to it, a simple ring, a bracelet, a heirloom etc are tokens of personal affection or love. In the same way we could view money or monetary transactions to be a token of some work carried out by a social agent.
You could ask now what kind of work does a social agent or an individual citizen do that makes his/her work more valuable than the rest. Value folks in every society is decided by the kind of problems you help the individual, entity or any such social construct solve. Thus it can be said that essentially all works carried out by all individuals accross the planet is some form of problem solving be it jobs, businesses, personal contracts like marriages even private relationships like friendship romantic, platonic or otherwise. There is a direct relationship between the value and the problem solved. The greater the nature of the problem the greater the value attached to it's resolution. Thus folks who solve more complex and demanding problems are paid more and have higher value and status in society as compared to those who do'nt.
But...
What I mentioned above does not take one more factor of the society into consideration. And that factor is bias. Be it gender, race or religion in a centeralized ecosystem where few folks in power are responsible for the bread and butter of many discrimination persists. Even the most developed nations suffer from this dark side of human nature. This is precisely the kind of problem that a decentralized system solves. It enables folks to be their own masters at the same time enable them to support themselves and the community at large.
Thus an equitible environment is formed which is necessary for maintaining the principles of laissze fairez in the economy as a whole.
