Bitcoin Forum

There is a thread where investors asks how to predict the value of tokens in order to hold them during next 10 years. Here is the link https://bitcointalk.org/index.php?topic=2312854.0 Unfortunately the threat is closed/locked now and discussion can't be continued.

But I have a question regarding it!

There are a lot of sane answers to investor's question and helpful advices. Like to make deep assessment of the project, analyse the team behind, check the roadmap and business plan... Yes, it is all very useful, I would say necessary actions while making an investment decision.

But I'm surprised that no one has raised the question: why to keep your tokens during 10 years?
If they are security / share tokens - hm.. yes, you can keep them as long-term investments shares and in case of company success you'll become wealthy.
But if they are utility / product tokens?
May be I'm wrong (correct me please in this case), but token-based business model works only in the community around this product really uses them. And not sits on tokens during 10 years waiting while they will increase in the price. That is what killed the Internet of People and some others.

Can someone give a clear comment on that?!
How actually should the tokenized economy work?
What should be the incentives of circulation of tokens within the ecosystem?
And what is the sence to tokenize products and services when the token holders / investors will just keep them in their wallets during many years?

The reality is that most people buy utility/product tokens (mainly from ICOs) as investments and not really because they want to use the product. So they hold and trade it as if it is an investment.

I also am struggling to fully understand how a token economy should work.  In situations where tokens are used to purchase things, are they always burned (or is that up to the company?).  If burned, then that means the value of a token is constantly increasing as the finite supply is used up.  Which is a great incentive to hold tokens or purchase tokens from a company you think will generate lots of revenue.  Is it always the case that tokens get burned, though?

I think tokenization policies have to be super clear from the beginning and written up in the chain right away. If not, it has to be legally binding governance in a decent country!

I do not believe in the burning process. I believe in the tokens being considered as shares, we don't see companies burning shares when they do IPOs, do we?

Utility tokens can be burned because projects get it from their business services and of course you won't see this method in IPO companies because it's a security and their business doesn't accept their own shares as public/consumer payments, why you don't believe in the burning process? burning tokens will reduce supply and that will affect prices because prices are determined by supply and demand, you can also check the truth about burned tokens by seeing the total supply in their contract

I agree, and I invite you to have a look at the smart contracts we just published on our Github for our security token compliant issuance system:

https://github.com/MtPelerin/MtPelerin-protocol (https://github.com/MtPelerin/MtPelerin-protocol)