1

01 WHAT IS WEB 3.0?

BLOCKCHAIN &
TABLE OF 02
CRPYTOCURRENCY
CONTENTS 03 DIGITAL OWNERSHIP & A
WORLD BEYOND
04 A, B, C, D BEHIND WEB 3.0

05 MISCELLANEOUS

06 VERDICT

07 ANNEXURES
WHAT IS WEB3.0?
The Internet as we know!

Overview of Internet Use

*As of Jan ‘22

4.95 62.5% 6H 58M 92.1%

Billion of world Avg. time spent Use Mobile
population

• 21 years later, we can unarguably agree that Daily

Mail was wrong about the fate of:
• The Internet
• It’s Advertisers

• With a large chunk of mass, consuming this

content on their phones while travelling in an
Uber, having ordered a meal using Swiggy, which
they’ll eat while watching Netflix, we can be sure
about one thing: i.e.
• THE INTERNET IS HERE TO STAY, although it
The Daily Mail Article dated 5 December 2000
might not stay the way it is!
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 WHAT IS WEB3.0?
The internet as it was

Web 1. 0 Web 2. 0 Web 3. 0

represents the next iteration

or phase of the evolution of the
internet which is built upon the
concepts of decentralization,
openness, and greater user utility.

➢ Dynamic, Asynchronous ➢ Dynamic, Asynchronous,

➢ Static, Synchronous, Community-based
➢ Text, Videos, Live-stream, etc.
➢ Mostly text-based, read only. ➢ Read, write & Own
➢ Read & Write Only

Google,
Wikipedia, YouTube, Ethereum
Arpanet FTP, TCP
Apple Twitter, Instagram,
& IP
Spotify Bitcoin, Binance Alchemy
Instagram Instagram

1960-80 1990 2000 2010 2020 4

WHAT IS WEB3.0?
Web1.0 Vs Web2.0 Vs Web3.0

5
WHAT IS WEB3.0?
Why Web3.0?

• Centralized with tech companies having complete discretion over censorship (Donald Trump can attest to this!) –
Throughout Web1.0, Internet services were built on open protocols (e.g. TCP, IP, SMTP, HTTP). Come Web2.0, for-profit tech
companies like Google, Amazon built a layer of proprietary applications over these protocols. (E.g. Outlook, owned by
Microsoft, is an application over SMTP, an open protocol that enables email.)

• Ownership in Web 2.0 is Myth – With only some of the offerings being monetized as pay-per-use, subscriptions, etc. Tech
giants they often act as self-proclaimed flagbearers of Open Internet, Cheap Access & Free-speech. (E.g. Individuals don’t
pay Google to use Gmail, but instead Gmail feeds into Google’s core business of collecting data and selling ads. This is the
world of Web 2.0! As the saying goes: “If you’re not paying for it, you’re not the customer. You’re the product.”).

Among several other shortcomings, one significant argument is that virtual experiences are not near real-life experiences.
Virtual experiences today are completely broken across content creation & ownership, monetization & marketing the content
and lastly content consumption.

“Big Data algorithms might create digital dictatorships in which all

power is concentrated in the hands of a tiny elite while most people
suffer not from exploitation, but from something far worse –
irrelevance.”
-

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Blockchain & Cryptocurrency
Blockchain & Cryptocurrency
What is Blockchain?

• Blockchain is an immutable time-stamped, decentralised,

distributed database that records the provenance of digital
asset and facilitates consensus driven collaboration &
tracking of transactions and interactions.

• Think of it as a ledger or rather an excel sheet, recording

transactions for the asset ‘Love’. Each row denotes an
individual transaction.

• Copies of this excel sheet are stored across multiple computers, each
in sync with every other copy

• Every transaction gets time-stamped and the contributor signs his

name against the transaction for others to verify his contribution.

Source and reference: Introduction to Blockchain for Bankers 8

Blockchain & Cryptocurrency
Understanding the Bitcoin Chain

For Visual Understanding: Try this out 9

Blockchain & Cryptocurrency
Proof of Work VS Proof of Stake

Important to keep all participants

synchronized on blockchain. However,
it seems far-fetched to make everyone
agree on one thing.

Use of pre-defined
algorithmic consensus mechanism to
establish governance among all the
network participants.

• PoW requires expensive machinery

and consumes massive energy.

• 0.21% of world electricity powers

bitcoin farms ~= power used Bitcoin, Dogecoin, Litecoin, Monero, Cardano, Avalanche, Polkadot and
by Switzerland in a year. DigiByte, Ravencoin, Siacoin, Horizen Solana, Tron, EOS, Algorand, and Tezos.
10
Blockchain & Cryptocurrency
Layer 0| Layer 1, Layer 2 protocols

Layer 0 protocol:
• ground floor for all blockchain protocols
• Eg. Cosmos and Polkadot

Layer 1 blockchain
• A collection of solutions that improves the Layer 0
• Eg. Bitcoin, Ethereum, Cardano, Ripple

Layer 2 blockchain
• can be defined as a scaling solution for a certain blockchain
that inherits security from its respective Layer 1 chain.
• Eg. Polygon runs on top of Ethereum -- solves the scalability
issue in Ethereum & charges a lot lower gas fees for
transactions

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The blockchain trilemma
Blockchain & Cryptocurrency
Cryptocurrency/ token universe

12
Digital Ownership & A world beyond

13
Digital Ownership & A world beyond
Non Fungible Tokens, qu'est que c'est?

• A code on the blockchain that is a certificate of ownership for a INCENTIVE TO BUY NFTs
unique digital asset. NFT acts as a receipt, providing publicly
verifiable proof of ownership.
• People can still view an image or listen to a song that has been
created (‘minted’) as an NFT but only the owner of the NFT can
extract the economic value accruing from ownership (eg: to sell Community Access to Governance
or transfer it, to license the content etc.) celebrities/artists
Belonging to a Better, direct Shape the direction
community of communication with a project take using
supporters artists smart contracts

Token Secondary Market

Appreciation Speculation
Upside due to value Further appreciation in
appreciation, esp. market (potentially correlated
for early adopters with crypto prices)

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Digital Ownership & A world beyond
NFTs: brands & celebs love them!

Snippet from Bored Ape Yatch Club’s Smart Contract

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Digital Ownership & A world beyond
NFTs: putting numbers to it

• The global annual spend: $1.05 trillion market in 2020 &$1.25 trillion in
2019

• Total addressable market expected to grow at 4-7%.

• NFT Volumes stood at $20.8B in 2021 (OpenSea - $14B, Axie – $3.5B,

Top Shot $750M, Rarible – $273M).
Source: Art Basel, HobbyDB, Bain, NewZoo, IBIS, US Census, Uncomfortable Profit
• A $20.8 billion market may seem large already, but it’s only
1.7% penetrated relative to the total $1.25 trillion opportunity.

CORE VS SPECULATIVE SPENDING

Core spend: sticky and recurring
Speculative spend: flighty and unreliable

If NFTs grow to take a meaningful piece of that trillion-dollar-plus

opportunity, it will be because core volume overtakes speculative
volume signifying real productive use of assets.

Source: Uncomfortable Profit 16

 Digital Ownership & A world beyond
What is Metaverse?

• Graphically rich virtual space where people can do things that they
like to do in real life –play, work, shop, socialize etc.
• Blending the physical and digital worlds while allowing us to be
completely present in either.
• The real world, AR, VR, and the internet all wrapped into one. A
potential successor to the mobile internet

Google Search Trends data for “Metaverse” in the past 12 months

post Facebook's rebranding to Meta in Jul '21.

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Digital Ownership & A world beyond
Metaverse Map

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A, B, C, D of Web3.0

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A, B, C, D of Web3.0
Decentralised Applications (dApps)

• Where web2 apps report back to their centralised servers like

Facebook and Twitter, dApps report back to the blockchain.

• DeFi - a global, blockchain-based alternative to every financial

service such as loans, insurance, trading etc., accessible
to everyone with a smartphone and internet access.

• DAO - Online, member-based communities ensuring

transparency & inclusion governed by consensus of
members with no central authority, allowing for
autonomous and automatic execution of the rules
through smart contracts

The Story of The DAO

The DAO was a decentralised venture capital fund
launched in April 2016. Members of The DAO
contributed ETH and received DAO tokens in exchange
& voted to decide distribution of funds. It raised $150m
but was hacked and $60m was stolen. The DAO is now
defunct but all the transactions are still visible because
they are on a public blockchain.
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A, B, C, D of Web3.0
DeFi / DAO Analogy for Bankers
Representative Logos

(DAO)

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Recent trends & our take
Global funding trends –

Total Co.s Funded Co.s Total Funding Exits (IPOs,Acq) Series A+ Series C+ Unicorns
12.7K+ 2.85K $34.6B 182 496+ 39+ 40

Europe
$5B China
$5.98B

North
America MENA India
$17.9B $1.58B $673M

Others
$3.4B+

Funding for last 5 years

Top Companies
Top Exits Top Business Models Fundin
Terra Chainalysis
Type Company Acq. Price/IPO Mcap (2018, South Korea, $125M) (2014, USA, $537M) (Last 2 years) g
Wyre Dapp Development Platforms $3.2B
(2013, United States, $22.2M)
$1.5B ConsenSys Sorare Blockchain Security $2.6B
(2014, USA, $725M) (2018, France, $680M)
Exodus Communication Blockchain Networks $3.1B
Acq. (1994, United States)
$750M
Dapper Labs Polygon Crypto Custodian Services $1.11B
Chain (2018, Canada, $886M) (2017, India, $550M) Casual NFT Game Developers $936M
$500M
(2014, United States, $39.6M) Fantasy Soccer NFT Platforms $738M
Argo Blockchain Forte Bitmain Blockchain in Fin. Services $548M
(2017, United Kingdom)
$6.9B (2018, USA, $910M) (2013, China, $950M)
Decentralised NFT Exchanges $531M
IPO Digital Collectible NFT in Game $449M
Hancom Secure Alchemy Fireblocks
$45.2M
(1999, South Korea) (2020, USA, $564M) (2018, USA, $1.04B) Hardware Mining Solutions $377M 22
Recent trends & our take
Recent funding trends in India –
Name Total Funding Revenue Valuation Last Round Key Investor

Polygon (Bangalore, India) Blockchain Infra > Protocol > $550M $871K $10B $450M Sequoia, Tiger Global, Softbank,
Layer 2 scaling protocol for Ethereum. Sidechain (Late Stage, Feb ’22) Steadview, Accel, Mark Cuban.
CoinSwitch (Bangalore, India) Cryptocurrency> FinServ> $302M $9.9M $1.91B $260M A16Z, Sequoia, Coinbase, Ribbit,
App-based platform for trading in Crypto Exchanges (Dec ‘20) (Series C, Oct ‘21) Tiger Global, Kunal Shah, etc.
cryptocurrency.

CoinDCX (Mumbai, India) Cryptocurrency> FinServ> $247M $900K $2B $135M Polychain, B Capital, Steadview,
App-based platform for trading in Crypto Exchanges (Dec ‘20) (Series D, Apr ‘22) Draper Dragon, Coinbase, Bain
cryptocurrency.

Rario (Singapore) NFT> Collectibles Marketplace $120M N.A. - $120M Dream Sports, Alpha Wave
Online marketplace for NFT digital collectables. > Sports (Series A, Apr ‘22) Global

Guardian Link (Chennai, India) Blockchain Infra> Developer $12M N.A - $12M Kalaari
Decentralized protocol for cross-chain NFT Tools> DeFi (Series A, Nov ’21)
Commerce

Vauld (Bangalore, India) Cryptocurrency> FinServ> DeFi $27.5M N.A $100M $25M Pantera, Valar, Coinbase, Better
P2P lending-borrowing platform for cryptos (Series A, Jul ‘21) Capital, Paipal
Mudrex (California, USA) Cryptocurrency> FinServ> $9.9M $162K - $6.5M Y Combinator, Nexus VP, Arkam
Crypto-SIP platform for individuals and Online Trading (Dec ‘19) (Seed, Feb ’22) Ventures, Anjali Bansal
businesses

Biconomy (Dubai, UAE) Blockchain Infra> Developer $10.5M N.A - $9M Mechanism Capital, Bain,
No-code blockchain application development Tools> dApps (Series A, Jul ‘21) Woodstock, Binance
platform for enterprise applications.

Koinearth (Bangalore, India) Blockchain Infra> SCM $1.8M $333K - $1.8M Yournest, Inventus, Lumis Labs
Supply chain solution for optimal asset sharing Software> Smart Contracts (Dec ‘19) (Seed, Mar ’21)
between governments, citizens & industries

Other Funded Players Strip finance, Wazir, Unbound, Bullieverse, Deliq finance, Arcana, The Kingdom, Lysto, Hyype, Polynomial, Hapramp
Studio, Knit, Elemential, KrypC, NFTically, CRUXpay, Solvent, Acknoledger, Whrrl, Alconomy Brahma, Nord Finance,
Buildpan, Unifarm, Sportz chain, Questbook, Bliv.club, Revise, Apeiron, One world nation, Deliq, Hashstack finance
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Verdict
Our take

Change is the only constant. Change leads to new innovative ventures displacing traditional non-
adaptive businesses. VC investors are vultures who tried to profiteer by banking on this change. Our
thesis at ITI Growth Opportunities Fund is a little different, we try to catalyze the change, while at it.

Although we are keen on the space, we are equally cautious especially owing to the imminent
change of tide in economic sentiments. We could be a headed towards a Dot-com like bubble for
segments like SaaS, Web3 & Fintech wherein the valuations sky-rocketed in the recent years. That
being said, we would be on the lookout for Larrys, Bezos & Thiels keeping their heads down and
building for the next billion.

As a fund, we would explore at opportunities that will lie in the fringes, which will ultimately
complete the Web 3.0 puzzle. Gaming happened as a fringe, most speculators saw it as a passing
fad. Yet gaming became incorporated with Web 3.0. Something similar is also happening across
fintech, consumer tech, supply chain, etc. right now, and we’re excited about the convergence
happening here.

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ANNEXURE I

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WHAT IS WEB3.0?
The internet as it was – Web1.0

• Static, Asynchronous, mostly text-based, read only.

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 WHAT IS WEB3.0?
The internet as it is – Web2.0

• Web 2.0, the term popularized by Tim O’Reilly in early

2000s, represents the Internet as we know it today and
includes all the blogs, social media sites, shopping, news
generation, and more!

• Built on the pillars of Mobile technology, Social media,

Web-commerce and the Cloud, Web2.0 is characterized
by user-generated content, heterogenous data-type,
dynamic web-pages & P2P transactions.

• It essentially fostered the growth of interoperability,

ease-of-use & collaboration.

• While Internet has come a long way from being a

circuit-switched wired network used by ARPA & DoD
scientists to access documents on their peer’s systems,
it’s far from perfect and broken by design.

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WHAT IS WEB3.0?
The internet of tomorrow – Web3.0

Web 3.0 is the third iteration of the Internet that interconnects

data in a decentralized way to deliver a faster and more
personalized user experience. It is built using artificial
intelligence, machine learning and the semantic web, and uses
the blockchain security system to keep your information safe
and secure.
The key features of web 3.0 are:
• Open – It’s made with open-source software developed by
an open and available community of developers &
accomplished in full view of the public.
• Trustless – Freedom to users to interact publicly and
privately without an intermediary exposing them to risks,
hence “trustless” data.
• Permissionless – Anyone, including users and providers, can
engage without the need for permission from a controlling
organization.
• Ubiquitous – Web 3.0 will make the Internet available to all
of us, at any time and from any location. Internet-connected
devices will no longer be limited to computers and
smartphones, as they are in web 2.0. IoT technology has
enabled the development of a multitude of new types of
intelligent gadgets.
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29
ANNEXURE II

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Blockchain & Cryptocurrency
What is Blockchain?
• Suppose we have a lot of participants. Many bilateral transactions are being made simultaneously. Let us now extend the above
method for recording one transaction to a 'set' of transactions. Then, all these transactions are recorded in a temporary log and
after every 2 seconds the transactions that have happened are batch processed, as a block of data.

Yes, Blockchain = Block + Chain!

Try it out 31
Blockchain & Cryptocurrency
What is Blockchain?
• When a block is created, a 32-bit whole number called nonce is generated which further generates a 256-bit hash. Mining is the
process of guessing the nonce value that generates the correct hash value.
• Hash is a unique, digital fingerprint of the data generated through hash functions and mining algorithm such as the SHA256 used by
Bitcoin. Each data generates a distinct hash and hence any alteration in the data will change the hash value. Hash thus helps in verifying
the integrity of the data.
• Every block is chained to the next block by the previous hash value. Changing the data of any block will change its hash value
and thus render all subsequent hash values as invalid. That is, any alteration will require generation of new hash values i.e., remining
for all subsequent blocks.
• Blockchain is a DLT (Decentralised Ledger Technology) where multiple copies of the blockchain exist. Any manipulation in data can
hence be easily identified due to the existence of multiple copies as the corrupted blockchain would have a hash different than the
original, the validity of which is determined based on consensus mechanisms.
• Public key is the address of users on the network known to everyone. It is used to encrypt and lock the data and to verify ownership.
• Private key is the address of users on the network that is private and hidden from everyone. It is used to decrypt and unlock the data
i.e., prove ownership of data.
How does transaction and verification work on blockchain?

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Blockchain & Cryptocurrency
What is cryptocurrency?

Objective of the Chain: Design a system that Result: Cryptocurrency

Has digitally native Incentivizes the

dollars validation network
Digital Currency

Decentralized &
Instantly verifiable Reliably tracks Unregulated
ownership
Immutable –
Distributed Ledger

Determined by market
Independent of any Fault-tolerant and forces
intermediaries robust Let's take a look at how this decentralized system 33
- Bitcoin Chain works seamlessly
 Blockchain & Cryptocurrency
Consensus Mechanism: Proof of Work
• Blockchain stands for decentralization via community participation & mutual
accord. It is important to keep all nodes/ participants synchronized. However, it
seems far-fetched to make everyone agree on one thing.

• Blockchains use a pre-defined algorithmic consensus mechanism to establish

governance among all the network participants.

• For the Bitcoin chain we saw above, miners compete to add a new block which is
algorithmically validated and verified by a majority (51%) of the participants. The
miner who is the updates the chain first receives rewards in the form of newly
minted Bitcoins & transaction fees.

• This consensus mechanism is “Proof-of-Work”. In a way, mining in PoW is like

Fastest fingers first, for that matter even simpler.

• Mining capacity in PoW depends on the computation capacity, It requires

expensive machinery and consumes massive energy.

• For context, 0.21% of world electricity powers bitcoin farms – almost

equivalent to the power used by Switzerland in a year.

• Due to the inefficiencies associated with PoW mechanism, an alternative – PoS has
become increasingly popular
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Blockchain & Cryptocurrency
BTC Vs ETH

CRYPTOCURRENCIES ARE PERMANENTLY

ON BLOCKCHAIN
For instance, to own 20 bitcoins means
BITCOIN ETHER having the password that can legitimately
claim 20 bitcoins on the blockchain.
Proof of Work –
Proof of Work – energy
initially; moving to
intensive
Proof of Stake
Limited supply – 21 CRYPTOCURRENCIES VS TOKENS
Unlimited supply – 18
million Cryptocurrencies are the digital assets
million/year
native to the blockchain, such as Bitcoin
Block time – 10 mins Block time – 15 secs and Ether. Tokens are digital assets built on
other cryptocurrencies, eg. Tether, Augur.
7 transactions/second 30 transaction/second

35
Blockchain & Cryptocurrency
Central Bank Digital Currency (CBDC)

Digital tokens

Issued & regulated by Central Bank

Pegged to fiat currency

Easy fin. & monetary

policy implementation

Financial inclusion

36
Blockchain & Cryptocurrency
Central Bank Digital Currency

WHOLESALE CBDC RETAIL CBDC

• For financial institutions (commercial • For individuals and businesses

banks)
• Eliminates intermediary risks
• To deposit funds, settle interbank
transfers • Two types: 1) Token based – public/private key
– anonymous
• Exchange and trading between central 2) Account based – digital identification
banks and private banks
• Digital form of physical cash; digital banknote
• Akin to holding reserves in a central bank
• Token- China, Uruguay, Senegal; Non-token-
• Canada, Singapore, Thailand, South Africa Sweden 37
Blockchain & Cryptocurrency
What are Stablecoins?

How does Tether work?

Cryptocurrencies whose values are pegged to
Tether (USDT) is pegged to USD i.e., 1USDT = $1
another currency, commodity, or financial
instrument
Buy 1 USDT --> $1 minted

Aim to provide an alternative to volatile Withdraw 1 USDT --> $1 burnt

cryptocurrencies like Bitcoin
1 USDT is always worth $1

Stabilisation achieved through collateralisation -

the total number of stablecoins in circulation is
Top Use Cases of Stablecoins:
backed by assets held in reserve or through
algorithmic formulae that control supply
• Trading
• Lending
• Safe Haven Asset
Better medium of exchange than traditional • Escrow
cryptocurrencies • Alternate Banking
• Powering Dapps
• Remittance
Digital Ownership & A world beyond
NFTs: putting numbers to it

• The NFT distribution data is very sporadic.

Initially art which dominated the (over 90% in
‘18) has come to sub-20% levels.

• This was then followed by a wave of Gaming

NFTs in ’19-’20 and then collectibles post
pandemic.

• Now there have been significant uptake in

Avatar NFTs post the re-branding of FB to
Meta.
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ANNEXURE III

40
A, B, C, D of Web3.0

41
A, B, C, D of Web3.0
DeFi

• Traditional finance is highly regulated, posing accessibility

issues due to restrictions in place. TradFi is backed by
central authorities, who can choose to prevent borrowing,
lending, opening bank accounts etc.

• Decentralised Finance (DeFi) provides a global, blockchain-

based alternative to every financial service such as loans,
insurance, trading etc., accessible to everyone with
a smartphone and internet access.

• DeFi works on 3 concepts: cryptography, blockchain, and

smart contracts.

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A, B, C, D of Web3.0
DApps

• Decentralised Applications (dApps): Apps running on

blockchain, instead of conventional apps running on a
centralised server.

• Where web2 apps report back to their centralised platforms

like Facebook and Twitter, dApps report back to the
blockchain.

• Key characteristics:
• Built on smart contracts: agreements written in open
source code, accessible to all – unlike web2 apps. Eg.
no public access to how Facebook recommendation
algorithm works.
• Censorship resistant: Since decentralised, no
government/authority interference.
• Never go offline: Unlike Facebook, Twitter etc. whose
servers go down at times, dApps can never go offline
since they are deployed on the blockchain network.

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A, B, C, D of Web3.0
DeFi Applications

LENDING &
STABLECOINS
BORROWING
Crypto pegged to a currency or Elimination of risk of default
another crypto. through over-collateralisation.
Eg. Stablecoin pegged to USD. For Eg. To borrow $100 worth Tether,
every 1 stablecoin purchased, $1 must put >$100 collateral, say
is minted. For every 1 stablecoin $120 ETH. This is embedded in
withdrawn, $1 is burnt – smart contract, ensuring
stablecoin is always worth 1USD. repayment of loan with interest.

DECENTRALISED
INSURANCE
EXCHANGES
Traditional finance has high ForeX
The code itself is the insurance
fees for currency conversion.
company. Smart contracts have
Decentralised Exchanges (DEXes)
the terms for insurance coded and
like Uniswap allow token
sum assured is automatically paid
trading at low, constant fees that
out if terms are met.
are immutably written on smart
contracts.
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A, B, C, D of Web3.0
Decentralised Autonomous Organisations (DAOs)
• Decentralised Autonomous Organisations (DAOs) are online,
member-based communities governed by consensus of Working of DAOs
members with no central authority.
Key characteristics:
• Decentralised: not controlled by a single party
• Autonomous: no human intervention; rules are enforced on
the blockchain by way of smart contracts that are programmed
on the blockchain, autonomous and automatic execution of the
rules
• Organisation: community of stakeholders
• Ensures transparency and inclusion. Every DAO’s balance
sheet exists on the blockchain, with every transaction viewable
by all.

The Story of The DAO

The DAO was a decentralised venture capital fund launched in Incentive for members to vote:
April 2016. Members of The DAO contributed ETH and A robust and healthy functioning DAO will draw in more
received DAO tokens in exchange which were then used to usage and hence increase the value of the tokens held
vote to decide distribution of funds. It raised $150m but was by each DAO.
hacked and $60m was stolen, leaving many sceptical of DAOs.
In spite of the DAO being defunct now, all the transactions are Success of DAOs Success of token holders
still visible because they are on a public blockchain – herein
lies the key feature of DAOs. 45
A, B, C, D of Web3.0
DAO Tokenomics

Digital
$ liquidity $
DeFiMarketplace Smart contract
Service layer replaces commercial DAO aggregates (small)
banks to create credit investors Fiat on/off ramp

Supply Manufacture Logistics Distribute

Smartcontract Smartcontract Smartcontract

matches finance to demand releases finance from escrow Pays investor

Key Debt funding $ Tokens

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A, B, C, D of Web3.0
DAO Tokenomics

47
A, B, C, D of Web3.0
DAO Tokenomics

Earn Collateral Trade Govern

Govern
Digitally … or real-world
• Creativity • Yield • Buy-sell • Marketplace
native abstraction†
• Behaviour • Rent • Lend-borrow • Library
• Library

Virtual
economy
= SSI + NFT + DeFi + Utility + DAO

User Asset Funding Value Community

• Anon. • Derivative • Gamified • Access • Innovators
• KYC† • AI-generated • Composable • Incentive • Users

48
A, B, C, D of Web3.0
DAO Tokenomics

Traditional - customer Digitally native - customer

data locked in enterprise silos owned data born on the internet

Wave 3 Wave 2 Wave1

Inventand Sharing economy

Gaming
reinvent Health - White space ~
markets rareconditions
start ups &/or
Collectibles enterprises Goto
Carbon, emissions
trading & derivatives market as a DAO
Stable coin
Incentive Electric P2P &
Payments
Industrial
Vehicles charging
Supply chains
Economyof Incumbent
Public e-Gov Consumer things
Circular economy
enterprises ~ Go To
Health – Market as a DAO
Optimise the commonconditions
status quo

Low access High access

Innovation Fuel

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 Miscellaneous
Cryptocurrency Regulation in India: Finance Bill, 2022

No government in the world would want to give

in to the idea of not minting their own money.
Thereby crypto is seen as lawmakers
throughout. India is no different.

Most countries have banned cryptos from being

a ‘store of value’. 8 countries including Nepal,
Pakistan & others have completely banned
crypto. 15 other countries have imposed
implicit bans on the use of crypto.

KEY TAKEAWAYS OF FINANCE BILL, 2022 IS CRYPTO LEGAL?

1) 30% tax on any income generated by virtual digital asset transactions and 1% tax The legality of cryptocurrency still remains unconfirmed
at source of transactions (TDS) since taxable does not imply legal.
2) Losses from transfer of digital assets cannot be offset against any other income.
3) Recipients of cryptocurrency gifts will also be taxed. At the same time, holding crypto does not imply
4) Introduction of digital rupee (CBDC) in FY22. imprisonment, as suggested by the draft legislations
from 2021. Jail or fine terms could be imposed – not for
TAXATION trading in crypto but for violating tax regulations.

All gains on crypto/virtual digital assets will be taxed 30%. 50

“Web3 is the world in which the code is open source instead
of closed source, the users own their data instead of being the
data, and the users and the contributors govern the network
and own the network instead of a small number of
shareholders owning the network”

– Naval Ravikant

Fin.
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