NFT tokens- 7 of the biggest projects.

Maciej Zieliński

28 Apr 2021
NFT tokens- 7 of the biggest projects.

NFT tokens are conquering the collectible items markets. During the last months there has been increased interest in NFTs. Therefore we prepared for you the list of the most interesting examples of their possible uses. 

NFT tokens use a special technology called a blockchain that certifies a digital asset to be unique and therefore not interchangeable. Tokens have been recently increasingly used in such key areas as IoT or supply chains. The NFT market value tripled in 2020, reaching more than $315 million.

NFT tokens are non-fungible, which means that each token in a given system is unique. Tokens like that do not have a standard value and often do not allow for the equivalent exchange of one for another. Each token has distinct, unique ownership or identity information. 

NFT tokens basic assets are: 

  • they are impossible to counterfeit
  • they can be moved
  • they retain ownership rights

NFT tokens - the biggest projects

NBA Top shot

The outcome of the cooperation between NBA and Dapper Labs company, in the simplest terms, is an internet platform for exchanging virtual trading cards. At NBA Top shot, basketball fans can buy and sell "moments" video clips from the last seasons of the competition that exist as NFT tokens on the Blockchain.

This is not the first time when NFT tokens have been used by a professional sports League, however, it is without a doubt the biggest one. CryptoSlam estimates that up until to now, the total value of all transactions between users has already reached $ 370 million. 

Axie Infinity

Axie Infinity is a gaming platform that, similarly to Decentraland, allows you to purchase a virtual ground in the form of an NFT token. In February this year an anonymous user with a nickname Flying Falcon bought 8 land grounds in the world of Axie for 1,5 million dollars.

"This largest digital ground sale in history represents a significant development in the short historyof NFT," said the seller in an interview for CoinDesk. "It is virtual economies that will be the new frontier for an increasingly digital world."

The demand for virtual grounds is steadily growing. This year, the average price paid for a plot in Decentraland was $ 2,703 - over three times more than in 2020. However, on another platform of this type - Cryptovoxels, the average value of the land has quadrupled during this time. 

Companies that operate on a traditional real estate market are slowly becoming interested in NFT virtual tokens. A good example is the enterprise called Republic Real Estate which operates in the housing market and opened for investors who are willing to buy a virtual ground. The enterprise is planning to buy a ground in several internet platforms and then reshape them for virtual hotels and shops in order to increase their value among enthusiasts.

“Real estates in the current world are very uncertain’’- said Janine Yorio, head of Republic Real Estate. “Residential prices are extremely high. However, offices and hotels are empty. It seems that virtual grounds are isolated from many real-life dangers’’.

King of Leons - music album released as NFT

Their eighth studio album, When You See Yourself, was released in March this year in the form of a NFT token. This is the first time that NFT tokens have been used by artists with such high visibility. The sale of tokens, in which the company  Yellow Heart was represented, ended on March the 19th, generating over $ 2 million in revenue. 

The NFT tokens released by the band in many ways resemble the typical merche of artists: they guarantee access to future concerts, covers or a limited vinyl edition. The applied technology makes NFT tokens unique. Because of the fact that NFT tokens use smart contracts, a set of rules may be taken into account by their creator to determine what should happen when an NFT is used or changes hands. It is precisely this aspect of NFT tokens that is the most valuable for the music industry.

Owing to NFT tokens , musicians can retain direct ownership of the rights to the song and collect royalties for playback and sales without the intervention of intermediaries.

Nike CryptoKick

NFT tokens are taking the collectibles market by storm. Their using owing to a footwear industry should be no reason to wonder, especially as in the 21st century, shoe collecting permanently entered the mainstream.

The industry giant- Nike joined in the trend registering the patent as a solution named CryptoKick in 2019. It is a system which enable to create and exchange cryptographically secured digital assets in the form of virtual shoes that can be linked to their physical counterpart in the real world.

 In the meantime, the whole project is shrouded in mystery, but it is already known today that is supposed to allow for simultaneous receipt of both versions of shoes; digital and physical at the time of purchasing the actual pair. 

Gucci AR sneakers 

In the fashion industry, where uniqueness and originality have always been of fundamental importance, it seems to be the perfect environment for NFT tokens. Therefore nowadays the biggest brands are investing in the development of the technology. 

Among them was the Gucci fashion house, which launched a series of augmented reality (AR) shoes in the form of NFT. The pair costs less than $ 12, and to make it possible to sell it, the company hired the Belarusian company Wanna, which has also collaborated with brands such as Puma and Reebok. 

"In five, maybe 10 years, a relatively large proportion of fashion brands' revenues will come from digital products," said Wanna CEO Sergey Arkhangelskiy, The Business of Fashion magazine.

,,Our aim as a company is to replace photos of products with something which is much more engaging and much more like shopping offline’’.

Beeple and Christie’s auction

Mike Winkelmann, known professionally as Beeple, is an American digital artist, graphic designer who began to explore and use the benefits of blockchain technology. The artist has been selling his works in the form of NFT tokens for years. However, it was the auction of his work at the Christies auction house that allowed him to become the author of the third most expensive cannon which was sold during the artist's lifetime in history.

The winner of the auction acquired ‘’EVERYDAYS: THE FIRST 5000 DAYS”  as a NFT token for nearly 70 million dollars. Thus, Christies became the first auction house to put a NFT token up for auction. In addition, the payment was made in Ethereum which is totally new for such an institution. 

The first tweet of Twitter's CEO is sold 

Last month, Twitter's CEO and founder sold his first tweet as NFT for 2.9 million dollars. Soon, the entrepreneur was joined by other personalities from the world of business and entertainment, even Elon Musk was close to sell his entry.

"This is not just a tweet!" - the action winner Hakan Estavi, CEO of Bridge Oracle said, "I think that ,after many years, people will realize the true value of this tweet, equal to the portrait of the Mona Lisa."    

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Token Engineering Process

Kajetan Olas

13 Apr 2024
Token Engineering Process

Token Engineering is an emerging field that addresses the systematic design and engineering of blockchain-based tokens. It applies rigorous mathematical methods from the Complex Systems Engineering discipline to tokenomics design.

In this article, we will walk through the Token Engineering Process and break it down into three key stages. Discovery Phase, Design Phase, and Deployment Phase.

Discovery Phase of Token Engineering Process

The first stage of the token engineering process is the Discovery Phase. It focuses on constructing high-level business plans, defining objectives, and identifying problems to be solved. That phase is also the time when token engineers first define key stakeholders in the project.

Defining the Problem

This may seem counterintuitive. Why would we start with the problem when designing tokenomics? Shouldn’t we start with more down-to-earth matters like token supply? The answer is No. Tokens are a medium for creating and exchanging value within a project’s ecosystem. Since crypto projects draw their value from solving problems that can’t be solved through TradFi mechanisms, their tokenomics should reflect that. 

The industry standard, developed by McKinsey & Co. and adapted to token engineering purposes by Outlier Ventures, is structuring the problem through a logic tree, following MECE.
MECE stands for Mutually Exclusive, Collectively Exhaustive. Mutually Exclusive means that problems in the tree should not overlap. Collectively Exhaustive means that the tree should cover all issues.

In practice, the “Problem” should be replaced by a whole problem statement worksheet. The same will hold for some of the boxes.
A commonly used tool for designing these kinds of diagrams is the Miro whiteboard.

Identifying Stakeholders and Value Flows in Token Engineering

This part is about identifying all relevant actors in the ecosystem and how value flows between them. To illustrate what we mean let’s consider an example of NFT marketplace. In its case, relevant actors might be sellers, buyers, NFT creators, and a marketplace owner. Possible value flow when conducting a transaction might be: buyer gets rid of his tokens, seller gets some of them, marketplace owner gets some of them as fees, and NFT creators get some of them as royalties.

Incentive Mechanisms Canvas

The last part of what we consider to be in the Discovery Phase is filling the Incentive Mechanisms Canvas. After successfully identifying value flows in the previous stage, token engineers search for frictions to desired behaviors and point out the undesired behaviors. For example, friction to activity on an NFT marketplace might be respecting royalty fees by marketplace owners since it reduces value flowing to the seller.


Design Phase of Token Engineering Process

The second stage of the Token Engineering Process is the Design Phase in which you make use of high-level descriptions from the previous step to come up with a specific design of the project. This will include everything that can be usually found in crypto whitepapers (e.g. governance mechanisms, incentive mechanisms, token supply, etc). After finishing the design, token engineers should represent the whole value flow and transactional logic on detailed visual diagrams. These diagrams will be a basis for creating mathematical models in the Deployment Phase. 

Token Engineering Artonomous Design Diagram
Artonomous design diagram, source: Artonomous GitHub

Objective Function

Every crypto project has some objective. The objective can consist of many goals, such as decentralization or token price. The objective function is a mathematical function assigning weights to different factors that influence the main objective in the order of their importance. This function will be a reference for machine learning algorithms in the next steps. They will try to find quantitative parameters (e.g. network fees) that maximize the output of this function.
Modified Metcalfe’s Law can serve as an inspiration during that step. It’s a framework for valuing crypto projects, but we believe that after adjustments it can also be used in this context.

Deployment Phase of Token Engineering Process

The Deployment Phase is final, but also the most demanding step in the process. It involves the implementation of machine learning algorithms that test our assumptions and optimize quantitative parameters. Token Engineering draws from Nassim Taleb’s concept of Antifragility and extensively uses feedback loops to make a system that gains from arising shocks.

Agent-based Modelling 

In agent-based modeling, we describe a set of behaviors and goals displayed by each agent participating in the system (this is why previous steps focused so much on describing stakeholders). Each agent is controlled by an autonomous AI and continuously optimizes his strategy. He learns from his experience and can mimic the behavior of other agents if he finds it effective (Reinforced Learning). This approach allows for mimicking real users, who adapt their strategies with time. An example adaptive agent would be a cryptocurrency trader, who changes his trading strategy in response to experiencing a loss of money.

Monte Carlo Simulations

Token Engineers use the Monte Carlo method to simulate the consequences of various possible interactions while taking into account the probability of their occurrence. By running a large number of simulations it’s possible to stress-test the project in multiple scenarios and identify emergent risks.

Testnet Deployment

If possible, it's highly beneficial for projects to extend the testing phase even further by letting real users use the network. Idea is the same as in agent-based testing - continuous optimization based on provided metrics. Furthermore, in case the project considers airdropping its tokens, giving them to early users is a great strategy. Even though part of the activity will be disingenuine and airdrop-oriented, such strategy still works better than most.

Time Duration

Token engineering process may take from as little as 2 weeks to as much as 5 months. It depends on the project category (Layer 1 protocol will require more time, than a simple DApp), and security requirements. For example, a bank issuing its digital token will have a very low risk tolerance.

Required Skills for Token Engineering

Token engineering is a multidisciplinary field and requires a great amount of specialized knowledge. Key knowledge areas are:

  • Systems Engineering
  • Machine Learning
  • Market Research
  • Capital Markets
  • Current trends in Web3
  • Blockchain Engineering
  • Statistics


The token engineering process consists of 3 steps: Discovery Phase, Design Phase, and Deployment Phase. It’s utilized mostly by established blockchain projects, and financial institutions like the International Monetary Fund. Even though it’s a very resource-consuming process, we believe it’s worth it. Projects that went through scrupulous design and testing before launch are much more likely to receive VC funding and be in the 10% of crypto projects that survive the bear market. Going through that process also has a symbolic meaning - it shows that the project is long-term oriented.

If you're looking to create a robust tokenomics model and go through institutional-grade testing please reach out to Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.


What does token engineering process look like?

  • Token engineering process is conducted in a 3-step methodical fashion. This includes Discovery Phase, Design Phase, and Deployment Phase. Each of these stages should be tailored to the specific needs of a project.

Is token engineering meant only for big projects?

  • We recommend that even small projects go through a simplified design and optimization process. This increases community's trust and makes sure that the tokenomics doesn't have any obvious flaws.

How long does the token engineering process take?

  • It depends on the project and may range from 2 weeks to 5 months.

What is Berachain? 🐻 ⛓️ + Proof-of-Liquidity Explained


18 Mar 2024
What is Berachain? 🐻 ⛓️ + Proof-of-Liquidity Explained

Enter Berachain: a high-performance, EVM-compatible blockchain that is set to redefine the landscape of decentralized applications (dApps) and blockchain services. Built on the innovative Proof-of-Liquidity consensus and leveraging the robust Polaris framework alongside the CometBFT consensus engine, Berachain is poised to offer an unprecedented blend of efficiency, security, and user-centric benefits. Let's dive into what makes it a groundbreaking development in the blockchain ecosystem.

What is Berachain?


Berachain is an EVM-compatible Layer 1 (L1) blockchain that stands out through its adoption of the Proof-of-Liquidity (PoL) consensus mechanism. Designed to address the critical challenges faced by decentralized networks. It introduces a cutting-edge approach to blockchain governance and operations.

Key Features

  • High-performance Capabilities. Berachain is engineered for speed and scalability, catering to the growing demand for efficient blockchain solutions.
  • EVM Compatibility. It supports all Ethereum tooling, operations, and smart contract languages, making it a seamless transition for developers and projects from the Ethereum ecosystem.
  • Proof-of-Liquidity.This novel consensus mechanism focuses on building liquidity, decentralizing stake, and aligning the interests of validators and protocol developers.


EVM-Compatible vs EVM-Equivalent


EVM compatibility means a blockchain can interact with Ethereum's ecosystem to some extent. It can interact supporting its smart contracts and tools but not replicating the entire EVM environment.


An EVM-equivalent blockchain, on the other hand, aims to fully replicate Ethereum's environment. It ensures complete compatibility and a smooth transition for developers and users alike.

Berachain's Position

Berachain can be considered an "EVM-equivalent-plus" blockchain. It supports all Ethereum operations, tooling, and additional functionalities that optimize for its unique Proof-of-Liquidity and abstracted use cases.

Berachain Modular First Approach

At the heart of Berachain's development philosophy is the Polaris EVM framework. It's a testament to the blockchain's commitment to modularity and flexibility. This approach allows for the easy separation of the EVM runtime layer, ensuring that Berachain can adapt and evolve without compromising on performance or security.

Proof Of Liquidity Overview

High-Level Model Objectives

  • Systemically Build Liquidity. By enhancing trading efficiency, price stability, and network growth, Berachain aims to foster a thriving ecosystem of decentralized applications.
  • Solve Stake Centralization. The PoL consensus works to distribute stake more evenly across the network, preventing monopolization and ensuring a decentralized, secure blockchain.
  • Align Protocols and Validators. Berachain encourages a symbiotic relationship between validators and the broader protocol ecosystem.

Proof-of-Liquidity vs Proof-of-Stake

Unlike traditional Proof of Stake (PoS), which often leads to stake centralization and reduced liquidity, Proof of Liquidity (PoL) introduces mechanisms to incentivize liquidity provision and ensure a fairer, more decentralized network. Berachain separates the governance token (BGT) from the chain's gas token (BERA) and incentives liquidity through BEX pools. Berachain's PoL aims to overcome the limitations of PoS, fostering a more secure and user-centric blockchain.

Berachain EVM and Modular Approach

Polaris EVM

Polaris EVM is the cornerstone of Berachain's EVM compatibility, offering developers an enhanced environment for smart contract execution that includes stateful precompiles and custom modules. This framework ensures that Berachain not only meets but exceeds the capabilities of the traditional Ethereum Virtual Machine.


The CometBFT consensus engine underpins Berachain's network, providing a secure and efficient mechanism for transaction verification and block production. By leveraging the principles of Byzantine fault tolerance (BFT), CometBFT ensures the integrity and resilience of the Berachain blockchain.


Berachain represents a significant leap forward in blockchain technology, combining the best of Ethereum's ecosystem with innovative consensus mechanisms and a modular development approach. As the blockchain landscape continues to evolve, Berachain stands out as a promising platform for developers, users, and validators alike, offering a scalable, efficient, and inclusive environment for decentralized applications and services.


For those interested in exploring further, a wealth of resources is available, including the Berachain documentation, GitHub repository, and community forums. It offers a compelling vision for the future of blockchain technology, marked by efficiency, security, and community-driven innovation.


How is Berachain different?

  • It integrates Proof-of-Liquidity to address stake centralization and enhance liquidity, setting it apart from other blockchains.

Is Berachain EVM-compatible?

  • Yes, it supports Ethereum's tooling and smart contract languages, facilitating easy migration of dApps.

Can it handle high transaction volumes?

  • Yes, thanks to the Polaris framework and CometBFT consensus engine, it's built for scalability and high throughput.