Token economics scoping review: Annotated bibliography

Van de Vyver, Mark (2023): Token economics scoping review: Annotated bibliography.

Abstract

This project highlights some tools and techniques relevant to designing a token economy under a rational expectations hypothesis. Six articles are reviewed, these enumerate some conditions for equilibrium pricing of specific effervescent tokens, dampened tokens, breakable tokens, and redeemable tokens. A review of Polkadot parachain token designs indicates differences in the issues and risks addressed by token equilibrium pricing models and those addressed by the designs practiced in the Polkadot ecosystem.

• Item Type: MPRA Paper
• Language: English
• Keywords: Blockchain, Cryptocurrency, Dynamic equilibrium, Token/coin offering
• Subjects: E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E41 - Demand for Money; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E42 - Monetary Systems ; Standards ; Regimes ; Government and the Monetary System ; Payment Systems; G - Financial Economics > G1 - General Financial Markets > G12 - Asset Pricing ; Trading Volume ; Bond Interest Rates

References

Chen, Long, Lin William Cong, and Yizhou Xiao. “A Brief Introduction to Blockchain Economics.” Chap. 1 in Information for Efficient Decision Making, 1–40. 2020. https://doi.org/10.1142/9789811220470 0001.

Cong, Lin William, Ye Li, and Neng Wang. “Tokenomics: Dynamic Adoption and Valuation.” The Review of Financial Studies 34, no. 3 (March 2021): 1105–1155. https://doi.org/10.1093/rfs/hhaa089.

Cong, Lin William, Ye Li, and Neng Wang. “Token-based platform finance.” Journal of Financial Eco- nomics 144, no. 3 (2022): 972–991. https://doi.org/10.1016/j.jfineco.2021.10.

Sockin, Michael, and Wei Xiong. “Decentralization through Tokenization.” The Journal of Finance 78, no. 1 (2023): 247–299. https://doi.org/10.1111/jofi.13192.

Sockin, Michael, and Wei Xiong. “A Model of Cryptocurrencies.” Management Science, Forthcoming. https://doi.org/10.1287/mnsc.2023.4756.

Rogoff, Kenneth, and Yang You. “Redeemable Platform Currencies.” The Review of Economic Studies 90, no. 2 (May 2022): 975–1008. https://doi.org/10.1093/restud/rdac028.