Tokenomics DAO Podcast
#21 - Shares vs. Tokens

#21 - Shares vs. Tokens

On this episode we explore the difference between shares and tokens. We look into how they are evaluated, the regulatory differences, the barrier of entry, how ownership works, why they each have value, the history and the future potential.

Show notes:

  • Shares are like tokens, but how do they differ?

  • Amazon doesn’t pay a dividend yet trades at a high market cap.

  • Tokens often do too but I feel people have more critic for a governance token e.g. it’s not attached to any value etc.

  • Tokens are more advanced: programmability: burn, mint, lock up all automated

  • Tokens often evaluated based on mechanism (governance) than on the business

  • Stocks are evaluated based on cash flow, potential future cash flow

  • What makes stocks valuable? Amazon vs. dividend corporation

  • Value and growth stock

  • How to profit from stock - selling it holding Amazon for three years won’t give you anything

  • Ownership in a business

  • Can’t cash out any piece of itI

  • Metrics of earning income eps, P/E ratio

  • Tokens are not evaluated on cash flow enough

  • What if we had two businesses with similar cash flows and other metrics. One would have a token one shares, what would be the difference?

  • If in the traditional equity/share world a corporation doesn’t pay any dividend or reduce supply or increase demand that’s not a problem, but if the same is done in crypto, people would be careful to invest.

  • But enough tokens shares to influence governance

  • What does ownership really mean

Watch this episode on YouTube:


Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.

None of this is legal advice. This podcast is strictly educational. Talk to your lawyer.

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Tokenomics DAO Podcast
Tokenomics DAO is a place to explore and collaborate on tokenomics of web3 protocols and blockchain applications. This podcast is one more way we make tokenomics accessible to anyone with an interest in the subject.