How does the token economy drive the real economy?

To understand how the token economy changes the real industry, it is necessary to clarify the concepts of the real economy and the token economy.

In the traditional sense, we are accustomed to dividing economic activities into virtual economy and real economy, but under the continuous development of the times, it is actually difficult to divide the components of some economic models in modern economic society. Generally speaking, the real economy refers to economic activities such as the production and circulation of services and material and spiritual products, which are the basis for human survival and development. The virtual economy is an economic form that is based on financial markets and financial tools and corresponds to and has a close relationship with the real economy.

Token economy is an economic system built around the brand-new concept of “token”, and it is a bridge between the real economy and the new virtual economy. By tokenizing the entity, it will have greater liquidity and improve the efficiency of asset utilization. For example, in 2018, a building in the East Village of Manhattan, New York, was financed in the market through a tokenization method, which greatly improved asset liquidity. Through tokenized assets, we can simplify financing steps, reduce financing time, and have stronger operability and greater transparency.

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