Token Economics
Robert Gregory, Tobias Mini
Abstract
Gregory and Mini offer a comprehensive review of the theoretical and practical foundations of token economics. The paper synthesizes existing literature to construct a framework for analyzing the value drivers of crypto assets. By distinguishing between utility, governance, and asset-backed tokens, the authors provide a taxonomy that allows researchers to assess the long-term viability of token-based business models. The analysis methodology combines game theory with empirical observations of decentralized finance (DeFi) protocols. The results indicate that successful token economies require a delicate balance between demand-side utility and supply-side inflation mechanisms. The significance of this work lies in its effort to standardize the vocabulary and analytical rigor required to evaluate token projects, moving the field away from purely speculative valuation models toward fundamental economic analysis.
Key Findings
- 1Tokens require clear utility-to-inflation balancing to maintain value.
- 2Governance and utility are distinct economic drivers that require separate analysis.
- 3Speculative valuation often obscures the underlying economic fundamentals of token projects.
- 4Standardization of terminology is essential for the maturity of the tokenomics field.
Topics
Citation
BibTeX
@misc{tokeneconomics2025,
title = {Token Economics},
author = {Robert Gregory and Tobias Mini},
year = {2025},
howpublished = {\url{https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5136771}},
}Knowledge Explorer
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