Blockchain Token Economics: A Mean-Field-Type Game Perspective. Barreiro-Gomez, J. & Tembine, H. IEEE Access, 7:64603–64613, 2019.
Blockchain Token Economics: A Mean-Field-Type Game Perspective [link]Paper  doi  abstract   bibtex   
This paper studies blockchain cryptographic tokens by means of mean-field-type game theory. It introduces variance-aware utility function per decision-maker to capture the risk of cryptographic tokens associated with the uncertainties of technology adoption, network security, regulatory legislation and market volatility. We establish a relationship between the network characteristics, token price, number of token holders and token supply. Both in-chain and cross-chain diversification among tokens are examined by using a mean-variance approach. The results suggest that the number of tokens in circulation need to be adjusted in order to capture risk-awareness and self-regulatory behavior in blockchain token economics. Sharpe and Modigliani ratios for cryptographic tokens are revisited.
@article{barreiro-gomez_blockchain_2019,
	title = {Blockchain {Token} {Economics}: {A} {Mean}-{Field}-{Type} {Game} {Perspective}},
	volume = {7},
	issn = {2169-3536},
	shorttitle = {Blockchain {Token} {Economics}},
	url = {https://ieeexplore.ieee.org/document/8717636/},
	doi = {10.1109/ACCESS.2019.2917517},
	abstract = {This paper studies blockchain cryptographic tokens by means of mean-field-type game theory. It introduces variance-aware utility function per decision-maker to capture the risk of cryptographic tokens associated with the uncertainties of technology adoption, network security, regulatory legislation and market volatility. We establish a relationship between the network characteristics, token price, number of token holders and token supply. Both in-chain and cross-chain diversification among tokens are examined by using a mean-variance approach. The results suggest that the number of tokens in circulation need to be adjusted in order to capture risk-awareness and self-regulatory behavior in blockchain token economics. Sharpe and Modigliani ratios for cryptographic tokens are revisited.},
	language = {en},
	urldate = {2021-06-21},
	journal = {IEEE Access},
	author = {Barreiro-Gomez, Julian and Tembine, Hamidou},
	year = {2019},
	pages = {64603--64613},
}

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