Utility tokens: discussion, economic model and simulation in #r
▻https://hackernoon.com/utility-tokens-discussion-economic-model-and-simulation-in-r-798c0ff3d26
Last fall I was hired to build an economic model for token-curated registries as part of my consulting job. Since then, I encountered many people who expressed interest in this model, so I decided to share the basic theory and implementation.Contents1. Philosophical introduction2. Model summary3. Agents and motivations4. System statics5. System dynamics: simulation in R6. Conclusion1. Philosophical introductionThe great expositive summary of Token economy can be found on Wikipedia, so I will dive into my points straight away.As I see it, a token economy is an attempt to quantify life and give a price to everything. This aligns perfectly with classical economic thinking, where even externalities, such as air pollution, can be compensated by sufficient taxes.Wikipedia says that tokens (...)