What is the underlying philosophy of Token Economy? Why are we interested in blockchain - a very inefficient distributed ledger? Why Inclusive Blockchain and Financial Inclusion are the keys to sustainable Token Economy in a highly regulated environment? Does Fractional Tradable Consensus Trust Carrier have any economic and financial value?

1. Global Tokenisation:
Does It Make Any Sense?
David LEE Kuo Chuen
Co-founder, BlockAsset Ventures
Professor, Singapore University of Social Sciences
https://www.linkedin.com/in/david-lee-kuo-chuen-%E6%9D%8E%E5%9B%BD%E6%9D%83-07750baa/
www.BlockAsset.ventures
www.Sussblockchain.com
Blockshow Youtube Recording
From 4:39:00
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2. World Riches 1% – In 2017
Controlled 50%
of global wealth
Received 82% of
the new wealth
generated
Low Marginal
Propensity to
Consume
Leads to Margin
Squeeze
Results in Low
Growth
Where is the
Future Growth?

3. Three Layers of Open Blockchain
•Ledger: Blocks of Information with Long Memory,
Mostly Transparent, Cryptography Based is
• Inefficient
•Tokens: Cryptocurrency, Identity, Utility, Others Digital
Assets for
• Exchange of Value
•Incentive System: Reinforcement for a Favorable
Outcome - Miners (Ledger), Investors (Returns), Users
(Transactions), Developers (Codes)
• Alignment of Interests

4. Breaking Down the Silos
•AI (Computing Power and Big Data) – Production
Efficiency
•Blockchain – Collaboration Efficiency
•Blockchain is mathematically-based trust
machine that enhances collaboration
relationship among untrusted nodes’ through
consensus.

5. The Era of Collaboration
Efficiency
•Production Efficiency is not sufficient for
growth anymore.
•Collaboration Efficiency is a priority to
break these barriers and bring down the
silos.

6. Loss of Efficiency
•When there are too many rules and
regulations, we can no longer function
efficiently
•Conflict of Interest Vs Alignment of Interest
•Bounded by Geography Vs Being Borderless
•Homogenised Vs Fractional Heterogenous
Goods and Services
•Rent Seeking Vs Society Benefits

7. How do we incentivise global collaboration among the
Crowd? (Three is a crowd and Community))
人
Me and I
众
Community

8. The Future World of Tokenisation
•Tokens are used
•to Incentivise Collaboration
•to Cross Border
•to Fractionalise and heterogenise
Ownership
•for Inclusion

9. •Blockchain 1.0
•Payments, Consensus, Bitcoin
•Internet of Value
•Blockchain 2.0
•Smart Contract, Turin Complete, Decentralised
Autonomous Organisation, Ethereum
•Internet of Smart Contract
•Blockchain 3.0
•Large Scale Applications, Cross Chain, Chains within
Chains, Stable Token, Convergence of Technology,
Financial Inclusion
•Internet of Inclusive Technology

10. Inclusive Technical Perspectives
•Storage
•Sharding, Shredding, Hybrid
•Scaling
•Instant Off-chain Payment: e.g. Lightning
•Off-chain 2-parties Dapps: e.g. State Channels
•Off-chain multiple parties Smart Contract: e.g.
Plasma
•Off-chain Computation: TrueBit

11. More on Inclusive Technical Perspectives
•Security
• Increasing the Cost of Hacking
•Privacy
• Encryption
• Zero-Knowledge Proof
•Multiple Chains
• Cross Chain
• Atomic Transfer
• Combination of Private, Consortium and Public Blockchain
• Convergence of Technology: IoT, Big Data, AI, Robotics,
Cloud, Oracle, etc

12. Blockchain Value Proposition:
Tokenisation
•Collaboration Efficiency
•Scalable Partnerships
•Network Effect
•Fractional Asset Ownership
•Inclusive Tradable Trusted Consensus Carrier

13. Successful Token
•3Cs: Community, Compassion, Creativity
•5D’s: Digitalisation, Disintermediation,
Democratisation, Decentralisation and
Diminishing Oneself
•LASIC: Business Model: Low Margin, Asset
Light, Scalable, Innovative and Compliance
Easy

14. Cow Token
Onshore: a Private Blockchain
Centralized Governance
Decentralized Technology
International Cow Token
Offshore: a Public Blockchain
Decentralized Governance
Decentralized Technology
Token
exchange via
smart
contract
ERC20：
Borderless
Fractional
Digital Asset
Ownership
Cow Token: Inclusive Blockchain Design
Token
exchange via
smart
contract
Domestic Cow Token
Onshore: a Consortium Blockchain
Centralized Governance
Decentralized Technology
David Lee (2018), "Decentralisation Technology and Distributed Innovation

15. MAJOR UNBANKED DEVELOPING COUNTRIES IN ASEAN
438 MILLION
ADULTS WITHOUT BANK
ACCOUNTS
>100%
MOBILE
PENETRATION RATE
UNBANKED
OF SE ASIA
73%
Myanmar Cambodia Laos
VietnamIndonesia Philippines
UNBANKED
SITUATED
IN 6 MAIN
COUNTRIES:
1 https://home.kpmg.com/xx/en/home/insights/2016/04/fintech-opening-the-door-to-the-unbanked-and-underbanked-in-southeast-asia.html

16. What Decentralised Tokenisation is Not
•Repacking old economy into the token economy
•Using token to bypass IPO regulation
•Fundraising as the sole objective
•No contribution to decentralisation
•Not using the technology to serve new users
•Just a means to extract more speculative value
•It scores low on 3Cs, 5Ds, LASIC

17. Sustainable Token Economy:
Global, Decentralised, and Inclusive
• Inclusive: Finance and Technology
• Co-exists: Government, Business, Decentralised
Autonomous Organisations
• Complete the ecosystem rather than to Compete: e.g.
“no forks blockchain” an inclusive ecosystem?
• Serve rather than rent seeking: e.g. centralised
exchanges that promote speculation with high fees?
• Empowering rather than possessive: e.g filing for
patents and preventing bottom up participation?

18. •More equality and justice: e.g. from Occupied Wall
Street to a systematic peaceful transformation
•Without the above, it is a false dawn for the Token
Economy as we perpetuate the same old values of the
old economy
•Without the decentralised and inclusive elements, the
Token Economy has low value
•The value of the Decentralised Inclusive Tokenisation
is Collaborative Efficiency that can only be achieved if
the community understands the underlying
philosophy of Inclusiveness and Empowerment.

19. At the end, Token Economy is about
User Innovation that fosters an
open, benevolent, global mindset
with the technical and social
objective of developing an
ecosystem that achieves prosperity,
equality, justice and progress for
the society.

20. It is not about competing with each other or
ruling the market, it is about completing and
serving the ecosystem and therefore the
society.
Only then, that this driver for fourth
industrial revolution will see its potential of
protecting human dignity via
decentralisation, inclusion and privacy.
There lies the value of the Token Economy
that many fail to comprehend!

21. A Tokenised Future
•The Future is not just about managing a
company but building ecosystem;
•the Future is not just about being a leader but
being an innovator;
•the Future is not just about building a workforce
but empowering collaborators;
•the Future is not about more regulations, but
about designing good Tokenisation Model.