Tokenomics and blockchain tokens: A design-oriented analysis
Pietro Freni, Fabio Ferretti, Massimo Gaspari
Abstract
Freni, Ferretti, and Gaspari perform an extensive design-oriented analysis of blockchain tokens, focusing on their architectural and functional variations. The paper classifies tokens based on their underlying design principles, such as their ledger compatibility, issuance protocols, and role within decentralized applications. By analyzing a wide array of existing token standards, the authors map out how design decisions directly correlate with the economic performance and security of the token. The paper highlights that tokens are not monolithic; rather, they are highly configurable financial instruments. This study is vital for developers and project managers who need to understand the technical implications of their economic design choices and how standardization (like ERC-20) facilitates or limits ecosystem growth.
Key Findings
- 1Token architecture is inextricably linked to project success and economic sustainability.
- 2Design choices regarding issuance and supply schedules determine a token's ability to retain value.
- 3Configurability of tokens allows for diverse utility profiles but increases complexity risk.
- 4Standardization remains a critical factor for interoperability and adoption.
Topics
Citation
BibTeX
@misc{tokenomicsand2022,
title = {Tokenomics and blockchain tokens: A design-oriented analysis},
author = {Pietro Freni and Fabio Ferretti and Massimo Gaspari},
year = {2022},
howpublished = {\url{https://www.sciencedirect.com/science/article/pii/S2096720922000094}},
}Knowledge Explorer
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