The Future Of Network Effects: Tokenization and the End of Extraction

When designed properly, decentralized, open source, tokenized cryptoasset networks solve the problem of incentive alignment between network creators and network participants. When the software is public, and the organizing body is a nonprofit rather than a for-profit, the Extraction Imperative is eliminated — because there are literally no longer shareholders with a claim on cash flows. The value is held in the network itself, represented by token ownership. Everyone who participates in the activity of the network, using and accruing tokens in the process, is effectively a network “owner.” Because there is no division between owners and participants, there is no point at which their incentives diverge.

Source: The Future Of Network Effects: Tokenization and the End of Extraction