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Token's function and role for securing ecosystem

  • Yoo, Soonduck (International management department Hansei Univ.)
  • Received : 2020.01.16
  • Accepted : 2020.02.18
  • Published : 2020.03.31

Abstract

The purpose of this study is to investigate the role and function of tokens to form a healthy blockchain-based ecosystem. Tokens must be constructed in a way that enhances their desired behavior to grow into a healthy token economy. The actions required of ecosystem participants in designing tokens should enable each individual to receive appropriate incentives (rewards) and encourage voluntary participation in taking this action. Also, all ecosystem participants must design to make the token ecosystem self-sustainable by generating profits. For example, in Bitcoin's proof-of-work method, mining is designed as a desirable behavior. Token-based services should be designed to induce multiple engagements, to design penalties for undesirable behavior, and to take into account evolutionary development potentials. Besides, the economic value of the entire token ecosystem will increase if the value that is designed and designed to take into account the revolutionary Innovation Possibility is greater than the reward amount paid to tokens. This study will contribute to presenting relevant service model by presenting how to design tokens and criteria when establishing blockchain-based service model. Future research is needed to discover new facts through a detailed comparative analysis between Tokennomics models.

Keywords

References

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