Token tickets will be the “big next new thing” in the cryptosphere, according to Pillar CEO David Siegel.
Speaking at the London Blockchain Week conference, David Siegel discussed token economics and what he believes will be the next big trend.
Poker chips
Siegel notes that the way to think about tokens in the context of cryptocurrency is that they have a “general unit of value in a system.”
He likened tokens to poker chips in that they are a form of money but only in a casino.
“The cashier, or exchange, is where they recycle the tokens,” Siegel comments. “Recycling is the common business model for tokens.”
However, tokens cannot be broken down so easily. This is because tokens “have quite a few characteristics, and one of these is that the market will determine some of the characteristics.”
“You can say Bitcoin is a unit of count, but that doesn’t make it a unit of count. The market will make it a unit of count.
“It’s similar to stablecoins. Is it really stable? Well it’s stable until it isn’t. And so, saying a coin is stable doesn’t make it stable.”
Token tickets have an unlimited supply at a fixed price
Siegel continues his analogy by claiming because there isn’t a large number of poker chips, they work well as a unit of value.
Furthermore, you cannot steal poker chips because you cannot sell them to anyone outside of the casino, which helps them retain their unit of value.
“Having a big number of tokens is what can make it a security,” Siegel reveals. “Anything that will have a fixed number will likely be regulated as a security.”
However, he claims token tickets have an unlimited supply at a fixed price.
Digital Asset Standards Association
“So, token tickets, I think, are the big next new thing,” says Siegel.
“We’re working, for example, at Pillar Labs on ticket chains.”
Ticket chains will mean each industry can have its own specific kind of token that will form the “information infrastructure” for that industry.
Siegel and the Pillar team also believe that their new Digital Asset Standards Association (DASA) principles should be adopted worldwide.
“If everyone adopts this standard, then all shares and all stocks around the world will be in DASA format, and that will allow liquidity and trading.”
The specifics behind DASA are still unclear, but it will be interesting to see how it will impact the idea of token tickets.
Interested in reading more about token economics? Discover more with our guide on understanding tokenomics.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.