Tokenomics and the Three Buckets of Knowledge: Building Strong Communities and Understanding the World



Aug 11, 20234 min read


Tokenomics and the Three Buckets of Knowledge: Building Strong Communities and Understanding the World


Creating a social token and understanding the fundamental knowledge that shapes our world may seem unrelated, but upon closer examination, we can find common points that connect these two concepts. In this article, we will explore the importance of tokenomics in building strong communities and how the three buckets of knowledge - physics, math, and human history - offer us valuable insights into the workings of the world.

Tokenomics for Strong Communities:

Creating a social token is just the first step; the real challenge lies in getting it accepted by a community. This is where tokenomics comes into play. Tokenomics refers to the design and economic aspects of a token that enable participants to contribute positively to a project. To build a strong community, creators must go beyond themselves and gather a collective of fans who share a common vision. This joint project requires collaboration, platform creation, challenges, and resource gathering.

To ensure the success of a social token project, it is recommended to create a token on a fixed supply. This approach offers better usability, lowers entry barriers, and gives community leaders full power over the distribution of the native token. Additionally, it does not require a strong community ready to pay from day one. While the standard supply is often set at 10 million, successful communities have thrived with both less and more supply. For example, Metafactory has a total supply of 420,000 tokens, while Bankless DAO has an initial supply of 1 billion tokens.

Furthermore, it is crucial to think about how to reward early believers and incentivize them to continue building. Two main ways to allocate tokens to community members are through bounties and budget allocations. Bounty hunters participate flexibly on an ad-hoc basis, renting their time in exchange for tokens. On the other hand, core contributors and staff members play more significant roles, taking care of complex missions and committing to long-term involvement. Having enough treasury to reward active community members is of utmost importance, as each person who receives a token should be considered an investor.

Understanding the World through the Three Buckets of Knowledge:

Now let's shift our focus to the three buckets of knowledge proposed by Peter Kaufman - physics, math, and human history. These buckets offer us endless learning opportunities and mental models that deepen our understanding of the world.

Physics and math, the oldest and most fundamental forms of knowledge, provide us with the rules that govern the universe. By studying these subjects, we gain insights into the fundamental workings of the world. The lessons derived from physics and math help us make sense of complex phenomena and establish a solid foundation for further exploration.

Human history, the third bucket, allows us to understand the rules that humans have played by throughout time. Just as physics and math provide us with the rules of the universe, human history provides us with the rules of human behavior. By studying history, we can identify patterns and recurring themes, enabling us to navigate the complexities of the present and anticipate the challenges of the future.

In studying geologic time, we learn the concept of gradualism and slow incremental change. This idea extends to human nature, which changes over geologic time, not human time. As a result, the fundamental problems of history tend to recur. However, in a developed and complex civilization, individuals become more differentiated and unique, requiring modifications of instinctive responses. Custom recedes, and reasoning spreads.

Resilience is another valuable lesson we can learn from nature's long history. Evolution teaches us that what is fragile will eventually break under the stresses of competition. Strong, win-win relationships, on the other hand, have the resilience to withstand challenges and endure. Understanding this concept helps us build robust communities and foster lasting collaborations.

Actionable Advice:

Before concluding, let's highlight three actionable pieces of advice:

  • 1. Focus on building a strong community: A social token project's success relies heavily on the strength of its community. Nurture relationships, encourage collaboration, and create a platform where members can actively contribute to the project's goals.
  • 2. Prioritize token usability and supply: When creating a social token, consider a fixed supply approach for better usability and lower entry barriers. Tailor the token supply to your community's specific needs and requirements.
  • 3. Establish a resilient financial system: Ensure that your token's financial aspect is well-structured. Avoid highly volatile tokens that may discourage contributors from investing their time. Consider creating a liquidity pool and carefully choose the token with which your token is bonded to mitigate price fluctuations.


Tokenomics and the three buckets of knowledge provide valuable insights into building strong communities and understanding the world. By incorporating strong token design, fostering collaboration, and incentivizing contributors, creators can create thriving social token projects. Simultaneously, studying physics, math, and human history equips us with fundamental knowledge and mental models that deepen our understanding of the world. By embracing these concepts, we can navigate the complexities of society, build resilient communities, and make informed decisions for the future.


  1. "Tokenomics - Three things Creators need to know before making a … — Mirror", (Glasp)
  2. "Peter Kaufman: The Three Buckets of Knowledge", (Glasp)

Want to hatch new ideas?

Glasp AI allows you to hatch new ideas based on your curated content. Let's curate and create with Glasp AI :)