Efficiency in Digital Economies -- A Primer on Tokenomics
- URL: http://arxiv.org/abs/2008.02538v2
- Date: Fri, 17 Mar 2023 16:01:33 GMT
- Title: Efficiency in Digital Economies -- A Primer on Tokenomics
- Authors: Ricky Lamberty and Alexander Poddey and David Galindo and Danny de
Waard and Tobias Koelbel and Daniel Kirste
- Abstract summary: cryptographic tokens are a new digital paradigm that can facilitate the establishment of economic incentives in digital ecoystems.
We show how certain principles and values that arise from the evolutionary process of digital cooperation can lead to a market economy characterized by economic efficiency of both individuals and the tokenized ecosystem as a whole.
- Score: 55.41644538483948
- License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
- Abstract: Cryptographic tokens are a new digital paradigm that can facilitate the
establishment of economic incentives in digital ecoystems. Tokens can be
leveraged for the coordination, optimization and governance of large networks
at scale in a decentralized manner. A key aspect is their programmability, that
can reward participants relative to their stage of adoption, according to the
value they contribute and the risk they bear. Moreover, this can be done in a
transparent and verifiable way, which increases trustworthiness in the emerging
systems. This work presents an overview of this new phenomenon and to provide
multi-disciplinary arguments on why tokenized ecosystems can drive a huge
momentum for positive-sum collaboration in the digital age. We illustrate how
certain principles and values that arise from the evolutionary process of
digital cooperation can lead to a market economy characterized by economic
efficiency of both individuals and the tokenized ecosystem as a whole.
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