# notes: [Tokenomics] Adaptive Sharing with Arweave's Sam Williams By [rw](https://paragraph.com/@rw-2) · 2022-02-25 --- notes on [\[Tokenomics\] Adaptive Sharing with Arweave's Sam Williams](https://www.youtube.com/watch?v=U7v63TjdutE&ab_channel=KERNEL) [![]({{DOMAIN}}/editor/youtube/play.png)](https://www.youtube.com/watch?v=U7v63TjdutE) arweave is based on bittorrent arwave as an evergrowing bittorrent swarm w incentives to pay for ppl to seed profit sharing tokens, profit sharing communities * trade proportions of future assets by trading proportions of the tokens * what happens to bitcoin if block award no longer rewarded? * or reward is less than the fees? * becomes unstable, can lose consensus * token design — profit sharing tokens * many streams of revenue happening * web2 economy - creator economy * platform has some monetization, like ads or like bandcamp, ppl pay a tip * creates a revenue stream * but inefficient — not financializable * if you’re a farmer, sowing seeds, you don’t just wait for crop to grow and sell * you sell a future on that * founder, you’re selling a %, use money to grow faster * creators — have to create for crops to reach maturity and harvest in order to get value * new artist … i’m going to publish an album * a few ppl download, but to get enough to get a new studio or synth, takes months and months * why? doesn’t have to be the case * generalized principle in web3, profit sharing token * revenue stream of any kind * print a token * token dictates future profit , where it goes to * an artist — you get a profit sharing token for each album * i can be an investor * this album is selling well, i’ll buy 20% now * artist has money now, can buy synth to make more another album, etc. * why isn’t this the case on youtube, apple store, etc. * large proportion of web is, creators create something, revenue slowly accrues, platform takes a huge chunk * can be more efficient * governance * notion of profit sharing community * you can have a profit sharing token w/o community * for an application, can have a dao * tokens in dao can be profit sharing tokens * decentralized medium … user pays small tip every time you publish a page * owners of the profit sharing tokens in community can be distributed reward based own % ownership * profit sharing communities * contractual constructions, smartweave * microdividends * capabilities of smartweave? * permissionlessly and ownerlessly , permanent * app * trustlessless — important * dao isn’t necessarily that much better than a company * don’t have to trust that the service will change the future — a lot of the utility * if bitcoin run by dao, we can’t always trust 21 million tokens * but we know this will stay true * e.g. content moderation * smart contracts in js run locally * governance mechanism of profit sharing community * mechanism design — * in normal daos, this is poorly handled, good governance incentives * vote weighting — # tokens \* the time you’re willing to stake them- -> voting power * e.g. small time holder but die hard attached, bigger say than large holder but flip tokens in month * interacts w profit sharing elements * e.g. if you stake tokens for 4 years, * governance decisions directly affect profit accrue in microdividends over 4 years * incentivized to perform good governance * daos — programmable so quickly iteratable * current crop, not super well formulated, direct democracy orgs * you can buy a bunch of tokens, vote on issue, immediately sell tokens * only use of token is governance * dangerous bc not incentivized to govern protocol in a way that is good for protocol, but incentive to extract value from protocol * defi protocols — vote to mint more tokens to reward owners for staking a specific token * defi summer to winter period, happened a lot * buy a lot of shitcoin and governance token, vote to mint new tokens, reward owners of shitcoin for staking * now price of shitcoin increases a lot, then dump those tokens + governance tokens , attack over * in a community where have vote weight by amount of time ppl are willing to stake * (incentive for long termism) * what is a community? * graeber: ppl slightly in debt to another * e.g. indigenous communities, you would never give a gift w exactly same amt * continued relationship * “karma” * how to incentivized prosocial behavior? * future, excited? non skeuomorphic of web2 * archives — * e.g. huge archive of artifacts from 2019 hong kong protests * ownerlessness * decent.land * kind of like reddit, each subreddit its own profit sharing community * buy and stake tokens to take part of the community * mods can be de-elected anytime * when you ban someone, you slash their stake * incentivized to not have your stake slashed — so don’t troll * incentive to make community more desirable for others to be a part of it * value goes up if more ppl want to be a part of the community * founder — give tokens to ppl who are “useful” in early days * desirability rises, tokens rise * being a good community is incentivized * there’s no “reddit company”, is autonomous --- *Originally published on [rw](https://paragraph.com/@rw-2/notes-tokenomics-adaptive-sharing-with-arweave-s-sam-williams)*