Titlebar

Export bibliographic data
Literature by the same author
plus on the publication server
plus at Google Scholar

 

The Token's Secret : The two-faced Financial Incentive of the Token Economy

DOI zum Zitieren der Version auf EPub Bayreuth: https://doi.org/10.15495/EPub_UBT_00005093
URN to cite this document: urn:nbn:de:bvb:703-epub-5093-8

Title data

Drasch, Benedict ; Fridgen, Gilbert ; Manner-Romberg, Tobias ; Nolting, Fenja M. ; Radszuwill, Sven:
The Token's Secret : The two-faced Financial Incentive of the Token Economy.
In: Electronic Markets. Vol. 30 (March 2020) . - pp. 557-567.
ISSN 1422-8890
DOI der Verlagsversion: https://doi.org/10.1007/s12525-020-00412-9

[img]
Format: PDF
Name: Drasch2020_Article_TheTokenSSecretTheTwo-facedFin.pdf
Version: Published Version
Available under License Creative Commons BY 4.0: Attribution
Download (494kB)

Abstract

Multi-sided platforms are omnipresent in today’s digital world. However, establishing a platform includes challenges: The platform utility usually increases with the number of participants. At an early stage, potential participants expect the platform utility to be low and lack an incentive to join (i.e., “chicken and egg” problem). Blockchain-enabled utility tokens hold the promise to overcome this problem. They supposedly provide a suitable financial incentive for their owners to join the platform as soon as possible. In the first half of 2018, investors seemed to believe in the presumption and spent more than US$ 17.6 billion in token sales. To date, we know little about this financial incentive in the context of the token economy. For this purpose, we model the token value development and the associated incentives in a multi-sided blockchain-enabled platform. The resulting findings suggest that blockchain-enabled utility tokens can help to overcome the “chicken and egg” problem. However, these tokens lead to contradictory incentives for platform participants, and can even inhibit platform usage. The contribution of our work is twofold: First, we develop one of the first models for token value development. Second, our research contributes to a deeper understanding of the utility token’s financial incentive.

Further data

Item Type: Article in a journal
Keywords: Multi-sided platform; Platform adoption; Blockchain; Tokenization; Token valuation
DDC Subjects: 000 Computer Science, information, general works > 004 Computer science
300 Social sciences > 330 Economics
Institutions of the University: Faculties > Faculty of Law, Business and Economics > Department of Business Administration
Faculties > Faculty of Law, Business and Economics > Department of Business Administration > Professor Information Systems and Sustainable IT Management
Research Institutions
Research Institutions > Affiliated Institutes
Research Institutions > Affiliated Institutes > Fraunhofer Project Group Business and Information Systems Engineering
Research Institutions > Affiliated Institutes > FIM Research Center Finance & Information Management
Faculties
Faculties > Faculty of Law, Business and Economics
Language: English
Originates at UBT: Yes
URN: urn:nbn:de:bvb:703-epub-5093-8
Date Deposited: 23 Sep 2020 07:07
Last Modified: 23 Sep 2020 07:07
URI: https://epub.uni-bayreuth.de/id/eprint/5093

Downloads

Downloads per month over past year