Outlier Ventures releases report on creating token ecosystem

Pedestrians at Bay and King Streets, with the Bank of Nova Scotia building in the background, Toronto, Canada. The intersection of Bay Street and King Street is considered the heart of Canada’s financial industry. Outlier Ventures’ Toronto office is located at 372 Bay Street, Suite 506. (Photo for article “Outlier Ventures releases report on creating token ecosystem”)

U.K.-registered prominent blockchain and Web 3.0 venture capital company Outlier Ventures has released a report on creating token ecosystem, sharing its learnings from and methodology for designing and engineering these new digital economies.

Eden Dhaliwal, Outlier’s head of Crypto Economics, and his team at the company had been working over several months to open up their work with the firm’s portfolio on token design. It should be noted here that Outlier Ventures is one of the leading investors and architects of tokenized ecosystems.

The report entitled “Token Ecosystem Creation” covers the methods, mechanisms and mix of skills required for designing token economies.

In the report, which CoinReport received from Fire on the Hill, Outlier’s PR firm, the venture capital company presents its phased strategic process that is structured around three phases consisting of discovery, design and deployment.

The discovery phase of creating token ecosystem outlines the foundation for creating a tokenized system and accompanying system requirements. The design phase dives into matters of market characterization, governance and recommends a minimum viable token. Lastly, the deployment phase authenticates and tests the system’s parameters.

“Token ecosystem creation is an iterative process in which optimization is present throughout all these three phases,” says the report in its conclusion. “We offer a pragmatic and flexible toolbox to create a ‘pathway to decentralization’ in order to achieve high degrees of decentralization and automation over time. We conclude that evaluating decentralization in the blockchain domain is multidimensional as it requires considering the type of consensus formation, conflict resolution, platform development, value capture at the network level and other issues around governance. We believe that a project should consider its optimal degree of decentralization at various stages and layers of the network.”

The full research report can be downloaded from Outlier Ventures’ website.

Image credit – Rémi Carreiro from Toronto, Canada  (Source: Rushing) (CC BY-SA 2.0)