{"id":90100,"date":"2020-10-15T21:45:24","date_gmt":"2020-10-15T18:45:24","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bouncing-ideas-around-tokenomic-design-cointelegraph-magazine\/"},"modified":"2020-10-15T21:45:24","modified_gmt":"2020-10-15T18:45:24","slug":"bouncing-ideas-around-tokenomic-design-cointelegraph-magazine","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bouncing-ideas-around-tokenomic-design-cointelegraph-magazine\/","title":{"rendered":"#Bouncing ideas around tokenomic design \u2013 Cointelegraph Magazine"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e3c2eecde0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e3c2eecde0\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bouncing-ideas-around-tokenomic-design-cointelegraph-magazine\/#World_tour_before_San_Francisco\" >World tour before San Francisco<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bouncing-ideas-around-tokenomic-design-cointelegraph-magazine\/#Learning_to_play_games\" >Learning to play games<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/bouncing-ideas-around-tokenomic-design-cointelegraph-magazine\/#Snitches_get_four_years\" >Snitches get four years<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/bouncing-ideas-around-tokenomic-design-cointelegraph-magazine\/#Price_discovery\" >Price discovery<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/bouncing-ideas-around-tokenomic-design-cointelegraph-magazine\/#Competition_for_auctions\" >Competition for auctions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/bouncing-ideas-around-tokenomic-design-cointelegraph-magazine\/#Attack_of_the_scammers\" >Attack of the scammers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/bouncing-ideas-around-tokenomic-design-cointelegraph-magazine\/#Attack_of_the_clones\" >Attack of the clones<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Bouncing ideas around tokenomic design \u2013 Cointelegraph Magazine<\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2020\/10\/Game-theory-tokenomic-design-DeFi-Bounce-Finance-scaled.jpg\" \/><\/p>\n<div><span style=\"font-weight: 400;\"><strong>Jack Lu, 23, was struck by the idea for his new DeFi platform Bounce<\/strong> while working on his thesis on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> theory and cryptocurrency at Reed College in California.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIt took me quite a long time to think of it,\u201d Lu explains about his game theory influenced auction platform. \u201cEveryone was talking about lending and borrowing, and doing Uniswap and providing liquidity. When I looked at this financial channel I think there\u2019s one missing piece, which is auctions.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Lu \u2014 who counts Andre Cronje from Yearn.Finance, Kain Warwick from Synthetix and Calvin Liu from Compound as peers \u2014 describes <\/span><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/bounce.finance\/\"><span style=\"font-weight: 400;\">Bounce<\/span><\/a><span style=\"font-weight: 400;\"> as a decentralized version of eBay, Sotheby\u2019s or Christies. Users can set up pools to auction off tokens, and play around with parameters like the number to be sw<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ed, the time limit and different ways of accepting bids.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He co-founded it with Ankr CEO Chandler Song and the bare bones, black and white platform went live on August 4.\u00a0 \u201cI partnered with some friends and we made it,\u201d Lu says. \u201cThe platform has been live for two months and it\u2019s ranked nine on ETH gas station.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So far more than 2,700 pools have been created, and more than 500,000 Ether ($179M) has changed hands on the Ethereum version of the platform. Bounce was also one of the first five projects announced for the interoperable Binance Smart Chain \u2014 which is essentially an Ethereum clone with lower gas fees and avoid congestion \u2014 and 700,000 BNB ($18.5M)has been swapped on that version since early September too.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The site launched with two types of auctions. Fixed swap, where everyone has the same price (like an ICO from 2017) and sealed bid auctions. <\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\">\u201cYou can put in a floor price and a timer and anyone can come and bid above the floor price. And when the pool closes, the smart contract will fill the orders from the highest price down to the bottom. So people do get different prices.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Lu recently added in some variations on Dutch style auctions \u2014 which start from a high price and sell off the tokens gradually as the price comes down \u2014 as well as English auctions, which start from a reserve price and head up.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"World_tour_before_San_Francisco\"><\/span><span style=\"font-weight: 400;\">World tour before San Francisco<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Originally from Guangdong Province in China, Lu attended high school in Britain where he took intro courses for college economics that enabled him to finish his degree at<\/span><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.reed.edu\/\"> <span style=\"font-weight: 400;\">Reed College<\/span><\/a><span style=\"font-weight: 400;\"> early. \u201cThat was where Steve Jobs went,\u201d says Lu. It was there he discovered crypto in 2016.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cQuite a lot of teenagers got into crypto at the time and my college roommate taught me about Ethereum and then I started to read medium articles and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Reddit<\/a>,\u201d he says. Lu began joining crypto groups and became friendly with NEO founder Hongfei Da which led to a six month internship with <\/span><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.linkedin.com\/company\/ngcventures\"><span style=\"font-weight: 400;\">NGC Ventures<\/span><\/a><span style=\"font-weight: 400;\"> in Shanghai in 2018.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It turned into a full-time gig after he graduated in 2019 and he\u2019s now the US Investment Manager for the fund, based in San Francisco.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cI help our portfolio projects to design their tokenomics,\u201d he says. \u201cDuring my due diligence on many projects, I have a broader view on what\u2019s going on in the crypto market and what the progress is on tokenomics in the crypto world.\u201d<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Learning_to_play_games\"><\/span><span style=\"font-weight: 400;\">Learning to play games<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">He may be the youngest employee at the firm, but he\u2019s also the only one to have written his thesis on blockchain and game theory \u2014 one of just a handful on the subject in the world at the time.<\/span><\/p>\n<p><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/en.wikipedia.org\/wiki\/Game_theory\"><span style=\"font-weight: 400;\">Game theory<\/span><\/a><span style=\"font-weight: 400;\"> is a branch of mathematics that examines the strategies employed in competitive situations where the outcomes for players depend critically on the actions of the other players. It has been applied to everything from war, to business and biology, but Lu\u2019s thesis explores why it\u2019s a perfect fit for cryptocurrencies. The \u2018players\u2019 in the decentralized world of blockchain, from miners to traders and hackers, are independent and make decisions after evaluating the benefits and costs associated with their moves.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unlike in the real world (as the<\/span><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.newyorker.com\/news\/john-cassidy\/the-triumph-and-failure-of-john-nashs-game-theory\"> <span style=\"font-weight: 400;\">New Yorker points out<\/span><\/a><span style=\"font-weight: 400;\">), game theory actually works better when applied to blockchain and smart contracts, because the rules are fixed, the blockchain is transparent and the information can be made available to all the players. Research has shown that the more informed party in a deal typically captures up to 18% more economic benefits than the less informed party. Lu explains:<\/span><\/p>\n<blockquote class=\"pullquote align-center\">\n<p><span style=\"font-weight: 400;\">I always say it\u2019s a successful experiment in game theory since we use smart contracts to avoid a lot of human elements for a game, and we can see how pool creators and participants act.<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400;\">His thesis examined concepts like the<\/span><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/en.wikipedia.org\/wiki\/Nash_equilibrium\"> <span style=\"font-weight: 400;\">Nash Equilibrium<\/span><\/a><span style=\"font-weight: 400;\">, which is used to analyze the outcome of games where there is a strategic interaction between several decision makers and where the outcome for each depends on the decisions others make, as well as their own.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Snitches_get_four_years\"><\/span><span style=\"font-weight: 400;\">Snitches get four years<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">The famous example of the<\/span><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/en.wikipedia.org\/wiki\/Prisoner%27s_dilemma\"> <span style=\"font-weight: 400;\">Prisoner\u2019s Dilemma<\/span><\/a><span style=\"font-weight: 400;\"> helps illustrate the concept:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Two suspects are interrogated separately for a crime. If both confess, they get four years in jail. If neither does, each will be sentenced to two years in jail. If only one confesses he will be released and the other sentenced to six years.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The best outcome is that neither of them confess. However, the model predicts both will confess, because they don\u2019t have any information about what the other prisoner is doing and thus hedge their bets and both converge at the middle outcome.<\/span><\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p><span style=\"font-weight: 400;\">Game theory gets fantastically complicated very quickly with games within games, and various amounts of knowledge and information about what other players are up to, expressed using algebraic formulas.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Lu enjoys watching the auctions on Bounce to observe how things play out in the context of game theory. \u201cI think all types of auctions are game theory events,\u201d he says pointing out that a sealed bid auction is reminiscent of the Prisoner\u2019s Dilemma.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIf you raise (the price), everyone needs to pay more than the sealed bid creator\u2019s floor price. But if everyone bids near the floor price, everyone would be better off. So I think this kind of on-chain behavior is quite interesting to see.\u201d<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Price_discovery\"><\/span><span style=\"font-weight: 400;\">Price discovery<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Lu says that auctions provide a better route towards price discovery for Initial DEX offerings than exchanges, or automated market makers like Uniswap. where the mechanics of competition encourages a lot of quick and reactive price action.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cFor Bounce if you\u2019re doing an auction, people have time to think. And the projects also have time to think and analyze people\u2019s demand for each pool,\u201d he says. \u201cThere\u2019s only a floor price or a price ceiling, so everything else is purely based on market demand.\u201d\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cSome projects are doing consecutive sealed bid auctions and the final price for each round is different. Like in the first round the final executed price is high and in the second round, the price is lower, and then in the third round the price gets higher again. So I think this is very interesting for analyzing players.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He compares it to a guessing game, where players in the second round assume that because there\u2019s more supply after the first round, they can enter at a lower price, but in the third round they assume everyone else will bid lower again, so <em>en masse<\/em> they bid higher in order to ensure they get tokens. As he puts it:<\/span><\/p>\n<blockquote class=\"pullquote align-center\">\n<p><span style=\"font-weight: 400;\">If you think that way others will also think that way, so this is the pattern of a consecutive game in game theory.<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400;\">Synthetix founder Kain Warwick says Bounce offers some intriguing possibilities. <\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\">\u201cOn-chain price discovery mechanisms are still fairly rudimentary for early stage projects with low liquidity,\u201d he says. \u201cBounce is looking to create several new token distribution mechanisms which will significantly improve price discovery and reduce volatility. Synthetix is exploring using this mechanism as part of our [stablecoin] sUSD peg stabilisation efforts.\u201d<\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\">Synthetix is expected to make a proper announcement about that soon.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another use case for Bounce is for decentralized over the counter (OTC) trades. Users with large piles of tokens can set up a pool, either privately or publicly, to arrange an OTC deal and avoid the price slippage that would occur on a centralized exchange.<\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\">Around 50 IDOs and OTC trades have already made use of the platform. Bounce hit a milestone when Lu added support for non-fungible tokens. NFTs are unique tokens that first appeared in the form of CryptoKitties, but now represent ownership of digital art, fashion, unique in-game items like F1 cars in racing games, and sporting memorabilia collectibles.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cI think an English auction is a perfect solution for NFTs that are art or tools in a game. But there are more functionalities, like using NFTs as collateral or NFTs as a loan, so for that dutch and sealed bid auctions have some special use cases.\u201d<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Competition_for_auctions\"><\/span><span style=\"font-weight: 400;\">Competition for auctions<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Bounce isn\u2019t the only token auction platform and has competition in the form of<\/span><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/mesa.eth.link\/#\/trade\/DAI-USDC?sell=0&amp;price=0&amp;from=&amp;expires=\"> <span style=\"font-weight: 400;\">Mesa<\/span><\/a><span style=\"font-weight: 400;\">, which is currently in beta, and<\/span><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/blog.coinlist.co\/introducing-coinlist-pro\/\"> <span style=\"font-weight: 400;\">CoinList<\/span><\/a><span style=\"font-weight: 400;\">. But Lu argues that Bounce is more decentralized than either.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe difference is the philosophy, I want everything to be on chain, I want zero (off chain) computation, which means the smart contract will do everything,\u201d he says. \u201cIt requires the smart contracts to be lightweight and requires your data type to be very efficient because you can only do a limited amount of computation on chain.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Game theory was also influential when Lu designed the tokenomics for the project. While he has studied lots of complicated token systems in the course of his work, he decided to start small.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIt\u2019s impossible to create a perfect game at the beginning because every single game you cannot reach equilibrium immediately,\u201d he explains \u2014 which in this case means an optimal outcome. \u201cA lot of projects think they can which is why they build a very, very complex token economy.\u201d He explains that:<\/span><\/p>\n<blockquote class=\"pullquote align-center\">\n<p><span style=\"font-weight: 400;\">For game theory you move to your equilibrium gradually and that\u2019s how I designed the Bounce tokenomics<\/span><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400;\"> Lu started with daily rewards based on the number transactions, then added staking and Uniswap liquidity pool rewards and more.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cFor me the philosophy is we will build more token economic pieces along the road, not at the very beginning, because even if you build a very complex system, if there are no people participating and you don\u2019t see what people want, then you are far away from equilibrium.\u201d<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Attack_of_the_scammers\"><\/span><span style=\"font-weight: 400;\">Attack of the scammers<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Being philosophically inclined towards maximum decentralization, Lu was faced with a tricky situation when scams started appearing on the platform. This is an issue that plagues DeFi protocols with a host of scam tokens listed on Uniswap every week.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cPeople are saying \u2018Oh you should ban scammers\u2019, but I was like, \u2018Oh this is a dilemma, because if I ban the scammers that means this platform is no longer decentralized,\u201d he says.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cHow can you define if it is real or if it\u2019s fake?\u201d he says. \u201cSo the only way is to build a social trust system.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the <\/span><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/medium.com\/@bouncefinance\/governance-v1-policies-a410aaf31b58\"><span style=\"font-weight: 400;\">just released system<\/span><\/a><span style=\"font-weight: 400;\">, users stake BOT tokens, and can then propose a project to the social trust board. The community of stakers vote on which tokens are legit and which aren\u2019t. So far around ten proposals have been put to a vote.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe proposer (of a pool) will stake their token to make sure they have their monetary interest in it. And they can lay out all of the project\u2019s information and all the Bounce holders can go to this social trust board and open all the proposals and if they like it, they can upvote, if they don\u2019t like they can downvote.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Interestingly enough, it\u2019s not based on the similar sounding <\/span><span style=\"font-weight: 400;\">Kleros curated token registry for Uniswap<\/span><span style=\"font-weight: 400;\">, which takes advantage of a game theory concept called a Schelling Point to reward jurors with tokens for voting for the judgement they think most other jurors are likely to give and punish them for voting any other way. <\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\">\u201cRight now there\u2019s not a mechanism, but later there will be punishments, Lu says of the social trust system. \u201cWhen you propose a pool you\u2019ll stake tokens in an insurance fund and the mechanism will punish malicious behaviour. If everything is clear, you get the insurance back, otherwise you compensate people through the insurance fund.\u201d<\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\">\u201cI think this is going to be a very nice experiment. When people talk about DeFi governance everyone just focuses on parameters like changing the transaction fee from this percentage to that percentage and adding a new pair. But this is not all that governance is about, there should be a large, large social element and people should be able to use tokens to do some interesting stuff. If on Bounce, social trust is worked out, I hope other people can also try to use it.\u201d<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Attack_of_the_clones\"><\/span><span style=\"font-weight: 400;\">Attack of the clones<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">The other big issue DeFi projects face is that as soon as a successful protocol is created, someone else clones it and offers its users bigger incentives to jump ship. Lu says he\u2019s just happy if \u201cthere are more people starting to think of different types of auctions and start to start to see this is also a DeFi piece that people can work on\u201d and isn\u2019t worried about clones.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cBeing the creator of this idea, I know exactly what I\u2019m doing,\u201d he says. \u201cThey might be able to copy the auction types I built but I have a roadmap in mind to follow so I think we can gradually compete them out.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cYou can copy one piece of the framework but when the framework has a solid foundation and a community to back it, I don\u2019t think a copycat will function. \u201c<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Governance for Bounce is handled by an all-star line up including Liu (Compound), Warwick (Syntherix) Stani Kulechov (Aave), George Lambeth (Balancer), Nikita Ovchinnik (1inch) and Michael Gu (Boxmining). Lu says that he hopes to collaborate more with these projects and believes that interoperability and collaboration is the key to DeFi\u2019s future.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe next step will be to find cooperation with other DeFi projects because I strongly think we only need one financial channel and everyone needs to cooperate with each other \u2013 not to have the ambition to fork other people,\u201d he says. <\/span><\/p>\n<blockquote class=\"pullquote align-center\">\n<p><span style=\"font-weight: 400;\">If you look at financial structures in history everything worked out because of collaboration.<\/span><\/p>\n<\/blockquote>\n<hr\/>\n<p>\u00a0<\/p>\n<\/p><\/div>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/magazine\/2020\/10\/15\/game-theory-meets-defi-bouncing-ideas-around-tokenomic-design\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Bouncing ideas around tokenomic design \u2013 Cointelegraph Magazine&#8221; Jack Lu, 23, was struck by the idea for his new DeFi platform Bounce while working on his thesis on game theory and cryptocurrency at Reed College in California. \u201cIt took me quite a long time to think of it,\u201d Lu explains about his game theory influenced&#8230;<\/p>\n","protected":false},"author":1,"featured_media":90101,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2020\/10\/Game-theory-tokenomic-design-DeFi-Bounce-Finance-scaled.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-90100","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/90100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=90100"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/90100\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/90101"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=90100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=90100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=90100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}