Ecosystem Value Flows (TMG1)

Ecosystem Value Flows

Web3 economies are ecosystems that enable the direct interaction of multiple stakeholders. These interactions are bounded by a predefined action space, and propelled by economic and non-economic incentives. The design space for such interactions is huge, ranging from supply and demand side contributions, to higher level value adds (think curation, verification), to governance and decision making to shared and distributed ownership.

In this course you’ll learn how to design, keep track of and optimize such multidimensional ecosystems value flows. This interactive online course picks up where "Business Model Generation" ends. Based on your core ecosystem objectives we’ll drill down to the stocks and flows in your system - a prerequisite to define appropriate economic mechanisms and apply engineering techniques to validate and stress test your system model.

This course is for individuals or project teams who are

  • in the process of further developing a viable tokenized economy, e.g. based on an initial white paper
  • looking for tools and a structured process to collaboratively iterate on the system design e.g. with developers, advisors, and the community

You can also work on a sponsored project's ecosystem design and specification.

Don't forget to provide background info when you apply UNTIL JULY 09, 2020 via this form:

This first phase of Token Model Generation consists of analyzing and specifying the value network of organizations and individuals. We start with canvases that are familiar to business and platform architects. For the purpose of token engineering design, we made some adaptations to help us focus on the motivations for the analysis of value flows and as inputs for incentive mechanism design. The description of the value network is then carried out in a visual language similar to stock & flows.

The course has the following contents:

Day 1: Ecosystem Purpose & Member Profiles

The ecosystem purpose is the shared motivation of all stakeholders that should be members. "The Rainbow Canvas" puts the mission or purpose at the core, and helps you position the ecosystem members in relation to the core purpose and to each other. "Member Profiles" template helps you document a member's characteristics, their valuable assets and capabilities, as well as highlight their motivations to share these. After the research and reflection, would you place them differently on the Rainbow Canvas?

Day 2: Stakeholder Stories & Motivations

"Ecosystem Motivation Matrix" helps collect an overview of relationships and interactions that are naturally given: intrinsic motivations, systemic incentives. Is the matrix balanced? Does the ecosystem have a positive sum game? Is there one dominant member? A β€œnatural monopoly”? Maybe you need to dig deeper: "Stakeholder Stories" help take snapshots of situations, reflect member actions, their motivations behind, and note your biggest assumptions. These will be the questions informing the modeling and simulation in later stages of computer-aided design. Assumptions also encompass legality of actions, other constraints to make interactions "safe" and "fair".

Day 3: Stakeholder Stories & Governance

The same situation then is analyzed with respect to the desired/needed outcome: do the members in this situation need additional incentives? Can the incentive be defined as system policy? How do stakeholders interact with the system? Can the policy be automated (algorithmic policies)? Does it require human deliberation (discretionary policies)? And finally: Who decides who decides (governance)?

Excursion 1: The ecosystem governance questions based on Elinor Ostrom's help you reflect and collect assumptions. Assumptions encompass legitimacy of policies. Excursion 2: The ecosystem game design, based on Le Grand Jeu, can be a great facilitation for co-creation with stakeholders, at the same time improve communication, collaboration, creativity and critical thinking!

Day 4: Value Network Specification

The design philosphy is:

Simple, clear purpose and principles give rise to complex and intelligent behaviour. Complex rules and regulations give rise to simple and stupid behaviour. - Dee Hock

In the last day of the course you will familiarize yourself with an adapted version of Stock & Flow diagrams used in visually describing token networks. The insights of the previous days as documented have a direct mapping to this visual language. Valuable assets and capabilities of members become Stocks in the system. The interactions, relationships define flows. User behavior, actions, and system policies define dynamics of these flows. First, list the questions that can be answered through simulations in the later stages of computer-aided design. You can start by depicting these excerpts and adding more to one model or create multiple models describing different aspects.

Where to from here?

This course helped you analyze and document the assumptions about the ecosystem value flows in a way that is comprehensible. The value network specification provides a common visual language between domain and technical stakeholders.

You can continue by applying existing Crpytoeconomic Patterns, adapt them, and/or create new mechanisms, observe the changes in the specification, discuss these with stakeholders.

In the next stages of Computer-aided Design you or your technical counterpart can further specify the dynamic model using Differential Specification Syntax and simulate using cadCAD. This process is iterative and aims at making assumptions explicit, stress test and improve the models.