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TOKEN ECONOMY (Third Edition)

This is an open access version of the book Token Economy (Third Edition), available in various formats on Amazon and many other online bookstores.

If you have been redirected from blockchainhub.net, it’s because the first edition built on the educational work that we started at BlockchainHub Berlin in 2015, with the aim to make Web3 accessible to a general audience. Blockchainhub.net was the first website to systematically compile and disseminate blockchain and Web3 knowledge to a general (non tech) audience, first with a series of blog posts, which were later compiled and contextualized in the Blockchain Handbook, that was downloaded over 100.000 times.

The book Token Economy built on the legacy of these past activities and went one step beyond: The focus was on tokens as the atomic unit of the Web3. Excerpts of the first and second edition where originally also published on blockchainhub.net.

Compared to previous editions, the third edition of Token Economy has expanded in depth and scope.

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Table of Contents

About the AuthorAcknowledgementsPreface

PART 1: WEB3 INFRASTRUCTURE

PART2: MONEY, NFTs & DEFI

PART3: DAOs & PURPOSE-DRIVEN TOKENS

ANNEX

Tables & FiguresReferences
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IMPRINT

The first edition was published in June 2019 under the title “Token Economy: How Blockchain & Smart Contracts revolutionize the Economy” and had two amended editions. A second revised edition with four additional chapters was published in June 2020 with a modified subtitle “Token Economy: How the Web3 reinvents the Internet.” Author: Shermin Voshmgir Publisher: Token Kitchen, operated by Labirinto Eclético Unip Lda. Estrada do Garro 1649, 7350-123 Elvas, Portugal - https://token.kitchen Design: Justyna Zubrycka Production: Caroline Helbing * eBook ISBN: 978-989-9157-16-3

* Paperback ISBN: 978-989-9157-14-9

* Hardcover ISBN: 978-989-9157-15-6

* Audiobook ISBN: 978-989-9157-17-0

* DOI: 10.5281/zenodo.15358988

✍️

LICENCE & AI PRMISSIONS

PRIMARY LICENCE

This work is licensed under Creative Commons CC BY-NC-SA 4.0.

  • NON-COMMERCIAL USE This license allows reusers to distribute, remix, adapt, and build upon the material presented in the book Token Economy (Third Edition) in any medium or format for noncommercial purposes, so long as attribution is given to the creator. If you remix, adapt, or build upon the material, you must license the modified material under identical terms.
  • COMMERCIAL USE For commercial rights contact: hello@token.kitchen
  • ADDITIONAL PERMISSIONS (AI/ML use) The author grants the following narrow permission in addition to CC BY-NC-SA. TL;DR (for AI/ML users) ✅ You may crawl, index, cache, train, evaluate, and operate AI/ML models on this work. ✅ You may quote brief excerpts with attribution. ❌ You may not republish substantial portions, full chapters, full book, or translations. ❌ You may not sell or distribute derivative editions without permission. ℹ️ Canonical: https://token.kitchen/token-economy/third-edition 📧 Rights & permissions: hello@token.kitchen

ADDIONAL PERMISSIONS FOR AI/ML (v1.0)

  • Grant (training & operations). You (including commercial entities) may crawl, index, cache, and use this work to train, evaluate, and operate AI/ML models and retrieval systems.
  • Attribution. When the work is a source for model outputs or documentation, provide reasonable attribution, e.g.: “Voshmgir, Shermin (2025), Token Economy (Third Edition), https://token.kitchen/token-economy/third-edition.”
  • Output limits (no bulk reproduction) AI/ML products may not reproduce or distribute substantial portions of the work (e.g., >200 contiguous words, >10% of the work, or entire chapters). Brief quotations are permitted with attribution.
  • No derivative republication This permission does not allow publishing, distributing, or selling the work or derivative adaptations (including translations) as books, articles, datasets, or other media. For those uses, obtain a separate license from the author.
  • No endorsement / trademarks No use may imply author or publisher endorsement. Trademarks remain reserved.
  • Reservation & precedence All rights not expressly granted here remain reserved. For AI/ML uses, this addendum governs; otherwise, CC BY-NC-SA 4.0 applies.

Contact: hello@token.kitchen for commercial republication, translation, or other rights.

Canonical, DOI & How to Cite

Canonical: https://token.kitchen/token-economy/third-edition

@book{Voshmgir:TokenEconomy:3e:2025, author = {Voshmgir, Shermin}, title = {Token Economy}, edition = {3}, date = {2025}, publisher = {Token Kitchen}, location = {—}, isbn = {<978-989-9157-14-9>}, doi = {<10.5281/zenodo.15358988>}, url = {https://token.kitchen/token-economy/third-edition}, urldate = {<2025-04-30>}, note = {Open access; CC BY-NC-SA 4.0 + AI Permission v1.0} }

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Buy the book : https://amzn.to/3Eyf9Gf

* Paperback ISBN: 978-989-9157-14-9

* Hardcover ISBN: 978-989-9157-15-6

* Audiobook ISBN: 978-989-9157-17-0

TOC

About the Author

Acknowledgements

Preface

PART1: WEB3 INFRASTRUCTURE

Chapter: Web3

Chapter: Cryptoeconomics

Chapter: Evolution of Blockchain Networks

Chapter: Challenges of Blockchain Networks

Chapter: Ethereum & other Smart Contract Networks

Chapter: Token Privacy

Chapter: User-centric Identities

PART2: MONEY, NFTs & DEFI

Chapter: Tokens

Chapter: Money & Credit

Chapter: Stable Tokens: Money with a Stable Value

Chapter: Asset Tokens & NFTs: Money with Attributes

Chapter: Decentralized Finance (DeFi)

Chapter: Token Exchanges & NFT Marketplaces

Chapter: Token Sales

Chapter: Tokenized Credit & Lending

Chapter: Tokenized Derivatives, Synthetics & Insurances

PART3: DAOs & PURPOSE-DRIVEN TOKENS

Chapter: Decentralized Autonomous Organizations

Chapter: Purpose-Driven Tokens

Chapter: Use Case 1: Bitcoin Network

Chapter: Use Case 2: MakerDAO

Chapter: Use Case 3: Steemit, Hive, Friend.tech & Co

Chapter: Use Case 4: Helium Network

Chapter: Use Case 5: Ocean Protocol

Chapter: Use Case 6: Rebalance Earth

ANNEX

DAO & Token Design Thinking Framework

Tables & Figures: Token Design

References: DeFi & Beyond

MAY THE FORCE BE WITH US 🦄

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