Here's Why You Should Invest in People (And Not Just Their Ideas)
Can you invest in people? It's a question that bounces around the YouToken community quite frequently. The short answer to this question is yes, you can. But why is this such an important concept of YouToken's core philosophy and what does it truly mean to "tokenize someone?"
THE BASICS OF TALENT TOKENIZATION
Investing in people is a cool idea to wrap your mind around and it's something we hold to a high level of importance at YouToken. Why? For one, YouToken likes to invest in people and not their idea because ideas can change in the course of a process. For the most part, people do not.
Investing in people gives them the chance to fail, learn and eventually develop their final business model. Throughout this process, the entrepreneur may have one (or several) failed idea. By investing in the person, these failed ideas do not affect the investor. Instead, they become opportunities for the entrepreneur to grow and develop their final concept. Once the entrepreneur has a clear vision, he/she and the investor start to benefit.
The essence of this explanation is what we call the "tokenization of people (and their talent)." On the YouToken platform, a person issues tokens, (or shares of themselves) that investors purchase. As a result, the entrepreneur receives starting capital and an opportunity to "sell themselves" on a market. If successful, their token value rises and benefits every investor who contributed to this individual.
THE VALUE OF THE INDIVIDUAL
In his book The Age of Diminished Expectations, American economist Paul Krugman wrote that "productivity isn't everything, but in the long run it is almost everything...A country's ability to improve its standard of living over time depends almost entirely on its ability to raise output per worker." Now let's take that quote and downsize it to the YouToken ecosystem.
Within this ecosystem, productivity and people are directly linked in a cyclical fashion. Higher levels of productivity allow people to invest in human capital and smart investments result in a higher level of productivity. To see a real-world example of this, one could look at the American economy.
For a long time, business objects and management styles focused on efficiency and not productivity. This resulted in less human investment and lower shareholder returns. People naturally assumed that money was in short supply. But it wasn't the money, it was the lack of good, growth ideas. Hence, the value of the individual is the key to a productive economy. By investing in real people, with real ideas, YouToken and all its users will capitalize on real success.
THE IMPACT OF INNOVATION ON THE YOUTOKEN PLATFORM
Robert Gordon, an economics professor at Northwestern University has statistical evidence proving that periods of major productivity in the United States were not the result of what they call "capital deepening (e.g. spending more money on labor). Instead, increased productivity in the economy is directly linked to innovation.
Who creates innovation? Who has revolutionary, inspirational ideas and transforms them into something real and beneficial? The answer lies within the people and their individual talent. People are the most valuable resource of the YouToken platform which is why it's essential to invest in their talent. People hold the key to new levels of productivity within the YouToken ecosystem and beyond. It's a quality that so many people overlook but it's the very foundation of this project.