Token Economy - What is the advantage? Example "Uber"

#1

@Ivan

This post is related to the course “Deep Fundamentals”. Topic: Token Economy, Guestlecture from Johan Stael von Holstein. It’s related to the example with «Uber». Videolink: https://ivanontech.teachable.com/courses/248526/lectures/4322732
or here: https://www.youtube.com/watch?v=-7t6I99uNn0&feature=youtu.be
Starting at: 25:20 Minutes

According to Johan: if we would have a token economy, the users would need tokens to drive with the taxi. The system is build and payed with tokens and the driver will be payed in tokens. The driver would like to have the taxi price as low as possible in order to get as many customers to drive with the taxi. This will cause the token go up in value (due to increased token demand).

As a loyal owner of coins (as a customer) I will travel as much as possible with the taxi to make good business in the system and therefore the value of the coin goes also up. And if I would be a developer I would also hold coins and would make the best possible code for the system in order to make the coin go up in value.

I understand everything until here. But:

Why would the driver want the coin go up in value?

Imagine following situation: A taxi drive from A to B costs 10 Tokens. Let’s assume 1 Token is currently worth 1 Dollar; meaning the drive was 10 Dollar worth. Now the value of the coin doubles and is now worth 2 Dollar. So next time the same ride would cost 5 Tokens.

Since the driver has to live and survive every month, he cannot hold his tokens. He would need to convert the earned tokens in Fiat Currency to buy food, pay his appartement etc. So what is the advantage for the driver in such a token economy system? He doesn’t earn more if the token goes up in value. He would get 5 Tokens which is 10 Dollars worth.

Can anyone help me to clarify this issue? I am going in circles since months but I don’t get the point.

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#2

Maybe it doesn’t have to be a 1 token taxi fee, it can be tied to a fiat amount. So on one week A to B costs 1.00 token which equals $10.00. The next week same A to Be costs .50 tokens which equals $10.00. As the value of the token goes up or down people still pay the same. I think this maybe the bridge we need until crypto is more widespread. I really suck at math so am open to bombasting.

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#3

Thank you Tibbers, I really appreciate your comment since I didn’t get any answers to my question.

What you are describing is exactly the point I struggel with. What is the advantage for the driver if the value of the token goes up? For my understanding there is no advantage for the driver since he wouldn’t get more money for the drive. He would still get the equal amount of 10$.

That’s exactly the point where I am going in circles. In the meantime I believe this was not a good example for a token economy from Johan Stael von Holstein. And in the meantime Ivan has deleted the video from his course. Since even @ivan couldn’t answer to this question I belive he also doesn’t consider this example as a good example.

Thanks anyway Tibbers!

Cheers

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#4

The thing is that technology is much more advanced than we can imagine and the blockchain technology is one of the most advanced and popularly used in the field of data encryption.

outlook 0x8004010f

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#5

I don‘t have the impression that this is an answer to my question…

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