Tokenize the World: A Framework for Digital Assets

With the broad diversity in the nature and type of tokens, a repeatable design approach, and notably one that leads to predictable results, needs to be anchored on a "Meta-model", an ontology that defines an underlying standards-based language for digital assets.

The Token Taxonomy Framework is one such meta-model for digital assets.

A Taxonomy for Tokens: Creating, Classifying and Reusing Digital AssetsA standards-based taxonomy for tokens is crucial for world markets and for global policymakers because a token class or type determines its attributes and behaviors i.e. securities rules, issuance facilities etc.

With the growth in the number and types of digital assets, there is an increase in the demand from regulators and from investors to consistently classify and categorize token types.

In addition to enabling the core meta-model, the Token Taxonomy Framework also facilitates a platform to enable the creation, classification, and the reuse of token definitions.

Token Unit: fractional, whole or singleton, indicating whether a token can be divided into smaller fractions, or if there can be a quantity greater than 1.Value Type: intrinsic or reference, indicating whether the token itself is a value, like a cryptocurrency, or if it references a value elsewhere, like a property title.

Supply: fixed, capped, variable, gated or infinite, indicating how many token instances a digital asset can have during its lifetime, and.

In practical terms, the TTF is a composition framework that breaks token definitions down into basic reusable components - base token types, behaviors, and properties.

Technical definition of the token: A technical specification of the token, including the base token type(s), behaviors, and properties.

John deVadoss is a founding Director of the InterWork Alliance and co-chairs the Token Taxonomy Framework Working Group.