Tokenomics: Dynamic Adoption and Valuation

• 成果类型: Article
• 署名作者: Cong, Lin William; Li, Ye; Wang, Neng
• 署名单位: Cornell University; University System of Ohio; Ohio State University; Columbia University; National Bureau of Economic Research
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhaa089
• 发表日期: 2021
• 页码: 1105
• 关键词: transactions demand; equilibrium; MARKETS; COSTS; MODEL; cash

摘要

We develop a dynamic asset pricing model of cryptocurrencies/tokens that allow users to conduct peer-to-peer transactions on digital platforms. The equilibrium price of tokens is determined by aggregating heterogeneous users' transactional demand, rather than discounting cash flows as is done in standard valuations models. Endogenous platform adoption builds on user network externality and exhibits an S-curve: it starts slow, becomes volatile, and eventually tapers off. The introduction of tokens lowers users' transaction costs on the platform by allowing users to capitalize on platform growth. The resultant intertemporal feedback between user adoption and token price accelerates adoption and dampens user-base volatility.