The global platform for properly designed tokens and token-powered networks
As a growing number of issues around consumer data and privacy continue to highlight concerns with large technology companies, we are witnessing a dramatic shift in interest towards decentralized systems that empower the public and consumers.
At the heart of this movement is tokenization. Tokens are the catalyst for reimagining both legacy constructs and new, previously unbuildable systems. They have the potential to enable coordination and value-creation worldwide in fundamentally new ways that are more fair, secure, and evenly distributed.
Like any nascent paradigm shift, there is much to figure out, but we are certain consumer and securities tokens will play a large role in the construction of our decentralized future. We are launching Token Foundry to support this.
Among the best use cases for tokenization are what we call “consumer tokens,” which are tokens designed for “use” or “consumption” within a defined network. These tokens can resemble, among other things, memberships, licenses, collectibles, and rewards points. But most importantly, they can power the adoption and usage of new decentralized networks.
Successful ecosystems rely on coordination mechanisms and the network effects of the data they contain. Facebook, Google, and Amazon have leveraged these principles to create some of the strongest and most valuable networks in existence, but they are flawed in that value is unevenly distributed to participants. Properly designed tokens, however, allow decentralized networks to incentivize specific behaviors that lead to even stronger networks, while distributing value more fairly amongst users.
The strength of a network is fundamentally derived from the actual usage of it. For example, Uber’s value would plummet if it didn’t have drivers or riders. The same is true with consumer token networks. Unfortunately, many tokens being launched today prioritize raising money over proper design, ultimately placing tokens in the hands of investors instead of users.
We are taking a different approach. The main goal of Token Foundry is to identify the consumers who will add the most value to each token-powered network, and to lower the barriers of entry to participate in them.
While our goal is to get consumer tokens in the hands of consumers and not investors, we believe that investors will play an important role in the tokenized future. Without a doubt, many revenue-generating businesses will be built on top of these decentralized networks, and issuing securities will still be the most appropriate financing option for them. Consumer tokens don’t replace the need for security instruments—they serve completely different purposes.
Tokenizing securities, financial instruments, and assets will have their own profound impact on the world, especially financial markets. Security and asset-backed tokens will a) increase access to capital and investment opportunities; b) unlock enormous pools of liquidity; c) create liquidity for previously illiquid assets; d) improve settlement times by orders of magnitude; and e) lower the cost of transactions.
While security tokens have enormous potential, they introduce new challenges for issuers, investors, and regulators, such as custody, coordination with existing regulations including transfer restrictions, and provenance. We firmly believe that blockchain technology and tokenization offer immense potential to solve these challenges in truly innovative ways, and we are working hard to deliver.
Welcome to the Tokenized Future
The team at Token Foundry is committed to developing the infrastructure that allows everyone to build and participate in the tokenized future. As we begin testing our new approach for selling consumer tokens, we’ll be providing updates and announcing changes and new features.
We’d love for everyone to be a part of our journey. Those interested should sign up for our waitlist, which is now live on our homepage. We look forward to having you join us on our mission to build the tokenized future, the right way.
Founder @ Token Foundry
Subscribe to Token Foundry
Get the latest posts delivered right to your inbox