How tokenized networks incentivize talents all around the globe
When creating a blockchain, token structure and token economics are key factors to consider. In fact, when deciding how to disperse these tokens, creators frequently consider how they would affect external stakeholders including investors, the community, and stakers (people that can mine or validate block transactions according to how many coins they possess). However, token economies are causing internal instability in firms, particularly in HR management and remuneration practices.
External stakeholders can be directly linked with the goal of a project if tokens are properly constructed for a blockchain. With community-building and marketing, these incentives can increase engagement on the blockchain platform and/or boost token demand.
Similarly, if internal stakeholder incentives are well organized, the project can gain long-term value by inspiring staff to work together toward a common goal while limiting antagonistic behavior and bad actors. In other words, if executed correctly, tokenized networks can globally incentivize talent and talent acquisition processes in a very remarkable way.
Employees and Investment options
Currently, equity in the form of stock options is commonly distributed as part of startup remuneration packages. Employees are provided with a combination of cash and company stock once they join a company.
Employees can use the options to participate effectively in the company’s upside if it succeeds, and can often choose between a bigger cash bonus or a higher number of options, based on their risk tolerance.
In fact, tokens and equities are comparable in many aspects. For starters, these assets encourage people to match their ambitions with those of a company. The value of the company’s tokens and shares should ideally rise as the company grows more profitable. However, one disadvantage of stock options remains; they normally require a liquidity event to allow an employee to convert them into cash.
In the past, when a firm went public, employees were able to convert their options into stocks and then sell them on the open market. However, this is not the case with tokenized assets and this is where Bondex comes in with a goal of creating a talent ecosystem where professionals can network, grow, and support each other.
This decentralized network connects companies with the right talent required, making talent acquisition and hiring cheaper, safer, and more practical processes. Bondex’s unique revenue-sharing model incentivizes talent around the world by distributing most of the revenue between its global talent pool and clients such as firms and large enterprises, in order to achieve long term improvements and growth.
Bondex might just become the biggest talent management and acquisition ecosystem, especially with its stellar incentive alignments and next-to-nothing payment friction.
In fact, changes in employee compensation have already gained traction in markets like China, where a number of Chinese blockchain companies have begun to distribute tokens as remuneration. Employees at enterprises such as Ontology, NEO, Huobi, and Binance are paid in their own coins. Thanks to a shared incentive system, many of these teams operate globally and are able to manage hundreds of individuals with few HR staff.
Tokenized networks are the future for talent acquisition
Despite their increasing prominence, these incentive schemes are still in their early stages of development. As compensation, token issuance comes with its own set of risks. In fact, the appeal of short-term, fast earnings from tokens, in particular, is becoming increasingly appealing. If incentives are set incorrectly, people could end up spending most of their time overhyping their tokens instead of developing products. This allows employees to cash out swiftly without delivering.
As a result, while developing employee token incentives, serious founders of new token-based enterprises should be wary of such short-sightedness. They should implement long-term token vesting schedules and hire personnel who are interested in maximizing long-term value.