---
title: "Meaning & Key Takeaway of: The fundamentals of the token model are…"
description: "\"The fundamentals of the token model are valuable and powerful. They allow communities to govern themselves, their economics, and rally a community in p..."
image: "https://sms4smile.com/quotes/i/b42/fred-ehrsam-12993_community_the-fundamentals-of-the-token-model-are_430498.jpg"
---

#  The fundamentals of the token model are valuable and…

![“The fundamentals of the token model are valuable and powerful. They allow communities to govern themselves, their economics, and rally a community in powerful ways that will allow open systems to flourish in a way that was previously impossible.” quote by Fred Ehrsam](https://sms4smile.com/quotes/i/b42/fred-ehrsam-12993_community_the-fundamentals-of-the-token-model-are_430498.jpg)   [Download](https://sms4smile.com/quotes/i/b42/fred-ehrsam-12993_community_the-fundamentals-of-the-token-model-are_430498.jpg) [Open image](https://sms4smile.com/quotes/i/b42/fred-ehrsam-12993_community_the-fundamentals-of-the-token-model-are_430498.jpg)

> “The fundamentals of the token model are valuable and powerful. They allow communities to govern themselves, their economics, and rally a community in powerful ways that will allow open systems to flourish in a way that was previously impossible.”

[Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/)

## About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

Token models enable decentralized self‑governance, fostering community‑driven economies and open systems.

**In simple terms:** Tokens empower community governance.

Key Takeaway

Leverage tokens for collective decision‑making.

Themes

blockchain decentralization community

Mood

optimistic innovative

Type

technical strategic

When to use this quote

- cryptocurrency projects
- DAOs
- open‑source platforms

Key Concepts

tokenomics governance models

Questions to Reflect On

- How can token governance be made more inclusive?
- What safeguards protect against manipulation?

A Different Perspective

Regulatory uncertainty can hinder adoption.

★ ★ ★ ★ ★   No ratings yet

[Community](https://sms4smile.com/quotes/about/community/) [Economics](https://sms4smile.com/quotes/about/economics/)

## Related quotes

> [Burgers and fries are an American staple. On the same token, my kids eat vegetables, and they always have eaten vegetables. They didn't have…](https://sms4smile.com/quotes/don-thompson/burgers-and-fries-are-an-american-staple-on-the-same-token-my-kids/)

Don Thompson

> [“I am glad I have found this napkin. This was her first remembrance from the Moor, My wayward husband hath a hundred times Wooed…](https://sms4smile.com/quotes/anonymous/i-am-glad-i-have-found-this-napkin-this-was-her-first-remembrance/)

[Anonymous](https://sms4smile.com/quotes/author/anonymous/)

> [I can't control the criticism. It's something you certainly don't appreciate, but by the same token, everybody is entitled to their opinion.](https://sms4smile.com/quotes/don-shula/i-can-t-control-the-criticism-it-s-something-you-certainly-don-t/)

[Don Shula](https://sms4smile.com/quotes/author/don-shula/)

> [It doesn't always make sense to have a token on the blockchain that is both useful and represents ownership - it has to be…](https://sms4smile.com/quotes/olaf-carlson-wee/it-doesn-t-always-make-sense-to-have-a-token-on-the-blockchain-that/)

[Olaf Carlson-Wee](https://sms4smile.com/quotes/author/olaf-carlson-wee/)

> [Owning a token bestows a right that results in product usage, a governance action, a given contribution, voting, or plain access to the product…](https://sms4smile.com/quotes/william-mougayar/owning-a-token-bestows-a-right-that-results-in-product-usage-a/)

[William Mougayar](https://sms4smile.com/quotes/author/william-mougayar/)

> [I was, like, this token teen angst child of Broadway. It's so funny. What is that? I don't even know. But I loved it.](https://sms4smile.com/quotes/jennifer-damiano/i-was-like-this-token-teen-angst-child-of-broadway-it-s-so-funny-what/)

[Jennifer Damiano](https://sms4smile.com/quotes/author/jennifer-damiano/)

> [I love scenes that are just emotional give and take. By the same token, action sequences are great to do. They have their own…](https://sms4smile.com/quotes/stephen-lang/i-love-scenes-that-are-just-emotional-give-and-take-by-the-same-token/)

[Stephen Lang](https://sms4smile.com/quotes/author/stephen-lang/)

> [I'm not just a token Muslim.](https://sms4smile.com/quotes/linda-sarsour/i-m-not-just-a-token-muslim/)

[Linda Sarsour](https://sms4smile.com/quotes/author/linda-sarsour/)

> [The Republicans can send the nation into turmoil, but we will not come to any agreement that does not include new revenue - and…](https://sms4smile.com/quotes/patty-murray/the-republicans-can-send-the-nation-into-turmoil-but-we-will-not-come/)

[Patty Murray](https://sms4smile.com/quotes/author/patty-murray/)

> [A token is not a short term carrot, nor a stick for that matter. Just having a token doesn't mean that you have a…](https://sms4smile.com/quotes/william-mougayar/a-token-is-not-a-short-term-carrot-nor-a-stick-for-that-matter-just/)

[William Mougayar](https://sms4smile.com/quotes/author/william-mougayar/)

> [Golf has been such a gift in my life, and I've enjoyed it so much and enjoyed lots of wonderful times on the golf…](https://sms4smile.com/quotes/cheryl-ladd/golf-has-been-such-a-gift-in-my-life-and-i-ve-enjoyed-it-so-much-and/)

[Cheryl Ladd](https://sms4smile.com/quotes/author/cheryl-ladd/)

> [“So we introduced a token system.9 The children were given ten tokens at the beginning of the week. These could each be traded in…](https://sms4smile.com/quotes/anonymous/so-we-introduced-a-token-system-9-the-children-were-given-ten-tokens/)

[Anonymous](https://sms4smile.com/quotes/author/anonymous/)

> [To become a token womanwhether you win the Nobel Prize or merely get tenure at the cost of denying your sistersis to become something…](https://sms4smile.com/quotes/anonymous/to-become-a-token-womanwhether-you-win-the-nobel-prize-or-merely-get/)

[Anonymous](https://sms4smile.com/quotes/author/anonymous/)

> [I want the troops from Great Britain and the U.S. to be successful, but by the same token, Afghanistan has always been a screw-up.](https://sms4smile.com/quotes/clint-eastwood/i-want-the-troops-from-great-britain-and-the-u-s-to-be-successful-but/)

[Clint Eastwood](https://sms4smile.com/quotes/author/clint-eastwood/)

> [Everything I'm saying shouldn't be taken so serious. I'm playing, but at the same token, I'm acknowledging that I'm not always the perfect man;…](https://sms4smile.com/quotes/common/everything-i-m-saying-shouldn-t-be-taken-so-serious-i-m-playing-but/)

[Common](https://sms4smile.com/quotes/author/common/)

## More by Fred Ehrsam

> [Sales conducted on-chain through smart contracts couldn't really be done before Ethereum, which is why they are a newer concept. I think this style…](https://sms4smile.com/quotes/fred-ehrsam/sales-conducted-on-chain-through-smart-contracts-couldn-t-really-be/)

[Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/)

> [OpenAI is doing important work by releasing tools which promote AI to be developed in the open. Compute power is largely produced by NVIDIA…](https://sms4smile.com/quotes/fred-ehrsam/openai-is-doing-important-work-by-releasing-tools-which-promote-ai-to/)

[Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/)

> [AIs are only as good as the data they are trained on.](https://sms4smile.com/quotes/fred-ehrsam/ais-are-only-as-good-as-the-data-they-are-trained-on/)

[Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/)

> [I'd guess blockchains will be the full-blown backbone of virtual worlds - the system for currency, assets, identity, even governance - before doing the…](https://sms4smile.com/quotes/fred-ehrsam/i-d-guess-blockchains-will-be-the-full-blown-backbone-of-virtual/)

[Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/)

> [Make no mistake - Ethereum would never have existed without Bitcoin as a forerunner. That said, I think Ethereum is ahead of Bitcoin in…](https://sms4smile.com/quotes/fred-ehrsam/make-no-mistake-ethereum-would-never-have-existed-without-bitcoin-as/)

[Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/)

> [Bitcoin has a core technological innovation: The ability to publicly verify ownership, instantly transfer that ownership, and do so without the need for a…](https://sms4smile.com/quotes/fred-ehrsam/bitcoin-has-a-core-technological-innovation-the-ability-to-publicly/)

[Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/)

> [When you drill down, blockchains are really a shared version of reality everyone agrees on. So whether it's a fully immersive VR experience, augmented…](https://sms4smile.com/quotes/fred-ehrsam/when-you-drill-down-blockchains-are-really-a-shared-version-of/)

[Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/)

> [At GDAX, we want to see new protocols and their tokens flourish.](https://sms4smile.com/quotes/fred-ehrsam/at-gdax-we-want-to-see-new-protocols-and-their-tokens-flourish/)

[Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/)

> [Just like mutations to DNA in biological organisms allow for evolution through natural selection, forking lets us run multiple experiments in parallel where the…](https://sms4smile.com/quotes/fred-ehrsam/just-like-mutations-to-dna-in-biological-organisms-allow-for/)

[Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/)

> [Redistributing tokens is a balancing act. In most cases, forks probably want to keep ownership for users constant so users have at least the…](https://sms4smile.com/quotes/fred-ehrsam/redistributing-tokens-is-a-balancing-act-in-most-cases-forks-probably/)

[Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/)

> [Bitcoin is inherently international, and one of its great promises is it enables cross-border payments in a more efficient way.](https://sms4smile.com/quotes/fred-ehrsam/bitcoin-is-inherently-international-and-one-of-its-great-promises-is/)

[Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/)

> [When the actual Bitcoin network launched in 2009, no one knew about it, and many of those who did thought it would surely fail.…](https://sms4smile.com/quotes/fred-ehrsam/when-the-actual-bitcoin-network-launched-in-2009-no-one-knew-about-it/)

[Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/)

> [Scaling is multidimensional. Different methods address different things.](https://sms4smile.com/quotes/fred-ehrsam/scaling-is-multidimensional-different-methods-address-different-things/)

[Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/)

> [Private funding was one of the first methods used when MIT funded Bitcoin core developers Gavin Andresen, Wladimir van der Laan, and Cory Fields…](https://sms4smile.com/quotes/fred-ehrsam/private-funding-was-one-of-the-first-methods-used-when-mit-funded/)

[Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/)

> [While it may seem scarier in the earlier days, I think ultimately the blockchain creates a safer world.](https://sms4smile.com/quotes/fred-ehrsam/while-it-may-seem-scarier-in-the-earlier-days-i-think-ultimately-the/)

[Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/)

[Explore all 52 Fred Ehrsam quotes ](https://sms4smile.com/quotes/author/fred-ehrsam/)

## More Community quotes

> [Race is the idea that a human being is more superior than another human being, race in society grants illusional rights to mistreat each…](https://sms4smile.com/quotes/jeremy-limn/race-is-the-idea-that-a-human-being-is-more-superior-than-another/)

[Jeremy Limn](https://sms4smile.com/quotes/author/jeremy-limn/)

> [But we are convinced that if we are to play a meaningful role nationally, and in the community of nations, we must be second…](https://sms4smile.com/quotes/vikram-sarabhai/but-we-are-convinced-that-if-we-are-to-play-a-meaningful-role/)

[Vikram Sarabhai](https://sms4smile.com/quotes/author/vikram-sarabhai/)

> [In the hearing world, I'm constantly having to lip-read and trying to understand what's going on. Sign language is so beautiful. It gives you…](https://sms4smile.com/quotes/rose-ayling-ellis/in-the-hearing-world-i-m-constantly-having-to-lip-read-and-trying-to/)

[Rose Ayling-Ellis](https://sms4smile.com/quotes/author/rose-ayling-ellis/)

> [The strains and stresses suffered by the individual in society are grounded in the normal functioning of that society (and of the individual!) rather…](https://sms4smile.com/quotes/herbert-marcuse/the-strains-and-stresses-suffered-by-the-individual-in-society-are/)

[Herbert Marcuse](https://sms4smile.com/quotes/author/herbert-marcuse/)

> [Hackney gets a bit of a bad rap, but it's the only place I've ever lived that felt like a community. I know my…](https://sms4smile.com/quotes/sharon-horgan/hackney-gets-a-bit-of-a-bad-rap-but-it-s-the-only-place-i-ve-ever/)

[Sharon Horgan](https://sms4smile.com/quotes/author/sharon-horgan/)

> [ The social \[media channel\] isn't about beauty contests and popularity contests. They're a distortion, a caricature of the real thing. It's about trust, connection,… ](https://sms4smile.com/quotes/umair-haque/the-social-media-channel-isn-t-about-beauty-contests-and-popularity/)

[Umair Haque](https://sms4smile.com/quotes/author/umair-haque/)

> [We're at a point in history were we have to become a part of the neighborhood of inhabited planets, like a neighborhood of a…](https://sms4smile.com/quotes/edgar-mitchell/we-re-at-a-point-in-history-were-we-have-to-become-a-part-of-the/)

[Edgar Mitchell](https://sms4smile.com/quotes/author/edgar-mitchell/)

> [I have to feel the audience. I enjoy that feeling of community.](https://sms4smile.com/quotes/dave-gahan/i-have-to-feel-the-audience-i-enjoy-that-feeling-of-community/)

[Dave Gahan](https://sms4smile.com/quotes/author/dave-gahan/)

> [It rolls off my back. Ridicule doesn't mean anything - even from people you're supposed to wear knee pads around, like the scientific community.](https://sms4smile.com/quotes/dwight-schultz/it-rolls-off-my-back-ridicule-doesn-t-mean-anything-even-from-people/)

[Dwight Schultz](https://sms4smile.com/quotes/author/dwight-schultz/)

> [Jeff Chu's pilgrimage across America to discover his own place as a gay man in the Christian church as well as attitudes about being…](https://sms4smile.com/quotes/donna-freitas/jeff-chu-s-pilgrimage-across-america-to-discover-his-own-place-as-a/)

[Donna Freitas](https://sms4smile.com/quotes/author/donna-freitas/)

> [I think that most of us, anyway, read these stories that we know are not "true" because we're hungry for another kind of truth:…](https://sms4smile.com/quotes/orson-scott-card/i-think-that-most-of-us-anyway-read-these-stories-that-we-know-are/)

[Orson Scott Card](https://sms4smile.com/quotes/author/orson-scott-card/)

> [Human life consists of doing certain things ... to take part in the life of the community; to be able to talk about subjects…](https://sms4smile.com/quotes/amartya-sen/human-life-consists-of-doing-certain-things-to-take-part-in-the-life/)

[Amartya Sen](https://sms4smile.com/quotes/author/amartya-sen/)

> [Parents who are stressed or disturbed will have more difficulty in meeting their children's needs. Parents who have little support--from friends, relatives, neighbors, or…](https://sms4smile.com/quotes/sheila-kamerman/parents-who-are-stressed-or-disturbed-will-have-more-difficulty-in/)

Sheila Kamerman

> [I think what was special about 'Music by Prudence' was the classic story of the title subject's life path - from being an outcast…](https://sms4smile.com/quotes/roger-ross-williams/i-think-what-was-special-about-music-by-prudence-was-the-classic/)

[Roger Ross Williams](https://sms4smile.com/quotes/author/roger-ross-williams/)

> [Perhaps the greatest and least visible form of impoverishment caused by the Corporate State is the destruction of community.](https://sms4smile.com/quotes/charles-a-reich/perhaps-the-greatest-and-least-visible-form-of-impoverishment-caused/)

[Charles A. Reich](https://sms4smile.com/quotes/author/charles-a-reich/)

[Browse all 13,840 Community quotes ](https://sms4smile.com/quotes/about/community/)

```json
{
    "@context": "https://schema.org",
    "@graph": [
        {
            "@type": "Quotation",
            "text": "The fundamentals of the token model are valuable and powerful. They allow communities to govern themselves, their economics, and rally a community in powerful ways that will allow open systems to flourish in a way that was previously impossible.",
            "creator": {
                "@type": "Person",
                "name": "Fred Ehrsam"
            },
            "isPartOf": {
                "@id": "https://sms4smile.com/quotes/#website"
            },
            "url": "https://sms4smile.com/quotes/fred-ehrsam/the-fundamentals-of-the-token-model-are-valuable-and-powerful-they/",
            "about": {
                "@type": "Thing",
                "name": "Community"
            },
            "@id": "https://sms4smile.com/quotes/fred-ehrsam/the-fundamentals-of-the-token-model-are-valuable-and-powerful-they/#quotation",
            "image": {
                "@type": "ImageObject",
                "@id": "https://sms4smile.com/quotes/i/b42/fred-ehrsam-12993_community_the-fundamentals-of-the-token-model-are_430498.jpg",
                "contentUrl": "https://sms4smile.com/quotes/i/b42/fred-ehrsam-12993_community_the-fundamentals-of-the-token-model-are_430498.jpg",
                "url": "https://sms4smile.com/quotes/i/b42/fred-ehrsam-12993_community_the-fundamentals-of-the-token-model-are_430498.jpg",
                "width": 1080,
                "height": 1080,
                "caption": "“The fundamentals of the token model are valuable and powerful. They allow communities to govern themselves…” — Fred Ehrsam",
                "creditText": "SMS4Smile Quotes",
                "creator": {
                    "@id": "https://sms4smile.com/quotes/#organization"
                }
            }
        },
        {
            "@type": "BreadcrumbList",
            "itemListElement": [
                {
                    "@type": "ListItem",
                    "position": 1,
                    "name": "Home",
                    "item": "https://sms4smile.com/"
                },
                {
                    "@type": "ListItem",
                    "position": 2,
                    "name": "Quotes",
                    "item": "https://sms4smile.com/quotes/"
                },
                {
                    "@type": "ListItem",
                    "position": 3,
                    "name": "Fred Ehrsam",
                    "item": "https://sms4smile.com/quotes/author/fred-ehrsam/"
                },
                {
                    "@type": "ListItem",
                    "position": 4,
                    "name": "The fundamentals of the token model...",
                    "item": "https://sms4smile.com/quotes/fred-ehrsam/the-fundamentals-of-the-token-model-are-valuable-and-powerful-they/"
                }
            ],
            "@id": "https://sms4smile.com/quotes/fred-ehrsam/the-fundamentals-of-the-token-model-are-valuable-and-powerful-they/#breadcrumb"
        },
        {
            "@type": "WebSite",
            "@id": "https://sms4smile.com/quotes/#website",
            "name": "SMS4Smile Quotes",
            "url": "https://sms4smile.com/quotes/",
            "publisher": {
                "@id": "https://sms4smile.com/quotes/#organization"
            }
        },
        {
            "@type": "Organization",
            "@id": "https://sms4smile.com/quotes/#organization",
            "name": "SMS4Smile Quotes",
            "url": "https://sms4smile.com/quotes/",
            "logo": {
                "@type": "ImageObject",
                "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png",
                "width": 512,
                "height": 512
            }
        }
    ]
}
```
