YAP Cast

YAP Cast S3E11: What is Programmable Money & Tokenomics? With Christine Kim



What Makes Ethereum’s Programmability, Evolution, and Tokenomics Crucial for the Future of Blockchain?

In this episode(S3E11), Samantha Yap and Christine Kim discuss programmable money and its effects on finance.

Christine mentions how her journey in crypto began with Bitcoin, leading her to CoinDesk and Galaxy Digital. They further discuss Tokenomics, the evolving DeFi landscape, and the interplay of technology and social influence.

Christine’s Journey

It started initially when her sister introduced her to Bitcoin. Then, after graduating from the University of British Columbia, she decided to explore the world of cryptocurrencies for her economics thesis. This led her to CoinDesk, where she started as an intern and later secured a full-time role as a tech reporter. Her trajectory continued, propelling her through research positions at CoinDesk and Galaxy. Christine’s story showcases the impact of familial inspiration and seizing unforeseen openings in the crypto realm.

Ethereum’s Game-Changing Programmable Money

Ethereum’s introduction in 2015 marked a shift beyond Bitcoin’s basic digital currency concept. Christine’s interest was piqued by Ethereum’s ability to create diverse tokens, from stablecoins to digital art, streamlining transactions without intermediaries. This innovation has far-reaching potential, impacting traditional finance, stablecoin adoption, and industries beyond crypto. With ongoing upgrades and expanding use cases like DeFi and NFTs, Ethereum’s programmable money continues to redefine how we engage with and understand currency.

Decoding Ethereum’s DeFi Impact and Tokenomics

Exemplified by initiatives like Superstate, Christine highlights the shift toward real-world assets in blockchain finance.

The DeFi landscape is splitting: some aim to disrupt traditional finance, while others focus on native crypto assets. This ongoing evolution will shape DeFi’s trajectory. As for Tokenomics, this signifies the economic dynamics of blockchain tokens. This shift signals blockchain’s transformative role in reshaping global finance.

DeFi’s evolution and tokenomics’ rise are transforming finance, ushering in a new decentralised era.

Crafting Digital Economics

Tokenomics involves crafting tokens with defined parameters for effective money. This experimental landscape contrasts with traditional economics, allowing rapid trials of controlled digital money. As blockchain reshapes finance, tokenomics becomes a driving force, revolutionising economic theories and redefining value.

The Fusion of Tech and Society in Tokenomics

Christine emphasises that token design isn’t solely technical but is deeply influenced by the desires of the community. Highlighting community sentiment’s role, Christine points to the “burn rate” feature on Ethereum, reflecting holders’ preference for enhanced value. This underscores the vital interaction between technology and human values.

When comparing Ethereum and Bitcoin, Christine showcases how Ethereum’s frequent updates differ from Bitcoin’s consistent design. Ethereum’s evolution is a collaborative effort, ensuring a decentralised decision-making process. Christine’s insights unveil the dynamic connection between technology, community, and tokenomics.

Ethereum’s Governance

Ethereum’s core technology relies on software clients maintained by core developers. The process involves consensus among developers and stakeholders, with voices ranging from decentralised finance developers to users influencing the network’s evolution.

Despite its complexity, Ethereum’s governance has grown more inclusive over time. Stakeholders participate through the Ethereum Improvement Proposal Process (EIPP), ensuring a decentralised approach that avoids undue influence.

Christine’s insights provide a clear overview of Ethereum’s collaborative governance, illustrating the dynamic interplay of participants shaping the network’s future.

Find out more about Galaxy Digital here

Follow Christine Kim on Twitter here

Follow Samantha on Twitter here