💰 [Analysis] Minimum viable economy – Nick Grossman

The reason why not every new project creates its own token is that there is a "minimum viable economy" (MVE). Projects need to achieve a critical mass to support its own token. A parallel is that some countries have their own currency because their economies are strong enough. However, weaker nations just adopt larger, more established currencies as they don't have the critical mass to support their own currency. The definition of a minimum viable economy changes depending on the shape of the network:

• Currency/medium of exchange use case: MVE is large as currency use case requires that merchants and consumers all use the token (highest difficulty)
• Payments use case: In a p2p payments use case, the MVE is that all your friends use it (medium difficulty)
• Single-purpose network use case: In single-purpose networks like 0x, sufficient density on the supply and demand sides of the market is enough to make it work (lowest difficulty)