Tokenization

Building Economic Communities

Lifestyle consumption has become a collective and reciprocal experience, where vibrant online communities of empowered consumers determine the choices that are being made by their peers. “In pursuit of ‘likes’ and building their own personal brand”3, the increasingly young customers are ever less impressionable by the top-down dictate of designers and brands: before they commit, these consumers need social proof. Community influencers at all levels have gained power over purchasing decisions, whenever their voices are perceived as authentic and whenever they effectively engage with their followers through aesthetic and credible content. Consumers trust other people they can relate to, whether on a personal or inspirational level: “Creativity and commerce have merged with like-minded
communities around the globe.” (Highsnobiety, 2018: The New Luxury)4 The hierarchies and prerogatives of trendsetting in the lifestyle world have become much more equalized, i.e.: decentralized.

TRIPLE P acts as the digital base layer for this decentralized ecosystem. It supports lifestyle ‘communitization’ through tokenization, as all stakeholders in this reconfigured and rebalanced system can build their own custom tokens on the TRIPLE P blockchain. Digital tokens can act as the connective medium for lifestyle communities: They make them valuable, participative, and inclusive.

Tokens are a new form of signaling interest, status, belonging, and value on a global scale. Tokens are
cultural currencies – they attach measurable and transferable value to all socio-creative activity and align
economic incentives.

Tokenization is the process of converting different kinds of rights into digital tokens on a blockchain. This could be for example the ownership of real-world and digital assets, permissions for special access, or the participation in votes. Tokens give the ability to make such rights fungible, shareable, and transferable, while at the same time they are highly versatile and customizable. At their core, tokens are pieces of data that stand-in for any valuable and more abstract bit of information. The range of their application is only bound by the imagination of their creators. Digital tokens can represent any form of asset, be it a monetary value, the promise for a product in a crowdfunding process, a ticket to an event, or access to all sorts of services. Around the ownership of such tokens, vibrant communities can form, where real value can freely flow between all participants.

The decentralized architecture of the TRIPLE P blockchain guarantees that the ownership information of lifestyle tokens remains verifiable, immutable, and secure. The customizability of tokens means that creators are free to decide upon their functionality, overall supply, target recipients, name, and branding. What all tokens have in common is that ultimately, they represent more than just some bits of information. They capture scarce bits of value that can be created, transferred, and stored. As token transactions run through the decentralized TRIPLE P network, they are trustless, work on marginal costs, and do not require intermediaries for their processing. This fosters new forms of unmediated interactions within the space in a safe and tamper-proof environment. Instead of exchanging messages with their communities, lifestyle communities can use tokens to exchange real value in a directed and open fashion. Tokens can be conceptualized as a new form of value. They follow the basic features of money, acting as a medium of exchange, a unit of account, and a store of value. Additionally, they can grant their owners all sorts of voting rights. Due to the flexible design of token economies, these functions can be tailored to the specific purpose they shall serve. Tokens can then be used as a means to crowd-fund creative work, either in an open offering or with a defined set of chosen participants. They can be used to perform payments at newly defined touchpoints and in any volume, from larger ones.