Leading Digital Socio-Economy to Efficiency -- A Primer on Tokenomics

Through the usage of cryptographically secure and digitally scarce tokens, a next evolutionary step of the Internet has come. Cryptographic token represent a new phenomena of the crypto movement with the ability to program rules and incentives to steer participant behaviors that transforms them from purely technical to socio-economic innovations. Tokens allow the coordination, optimization and governing large networks of resources in a decentralized manner and at scale. Tokens bring powerful network effects that reward participants relative to their stage of adoption, the value they contribute and the risk they bear in an auditable, decentralized and therefore trustful way. We illustrate which important role tokenomics plays in the creation of, and sustainable and efficient operation of cooperations.Comment: 9 page

How Automated Market Makers Approach the Thin Market Problem in Cryptoeconomic Systems

The proper design of automated market makers (AMMs) is crucial to enable the continuous trading of assets represented as digital tokens on markets of cryptoeconomic systems. Improperly designed AMMs can make such markets suffer from the thin market problem (TMP), which can cause cryptoeconomic systems to fail their purposes. We developed an AMM taxonomy that showcases AMM design characteristics. Based on the AMM taxonomy, we devised AMM archetypes implementing principal solution approaches for the TMP. The main purpose of this article is to support practitioners and researchers in tackling the TMP through proper AMM designs

How Automated Market Makers Approach the Thin Market Problem in Cryptoeconomic Systems

The proper design of automated market makers (AMMs) is crucial to enable the continuous trading of assets represented as digital tokens on markets of cryptoeconomic systems. Improperly designed AMMs can make such markets suffer from the thin market problem (TMP), which can cause cryptoeconomic systems to fail their purposes. We developed an AMM taxonomy that showcases AMM design characteristics. Based on the AMM taxonomy, we devised AMM archetypes that implement principal solution approaches for the TMP. The main purpose of this article is to support practitioners and researchers in tackling the TMP through proper AMM designs

Spotlight on DeFi Centerpieces: Towards an Economic Perspective on Asset Tokenization Services

Experts consider tokenization a potentially disruptive blockchain-based innovation. Cryptographic tokens can represent ownership of tangible and intangible assets in the digital space, serve as a store of value and proof of ownership, and enable investments in historically illiquid assets. While there are promising use cases for these new technological capabilities, research on economic perspectives is still in its infancy. Therefore, we focus on asset tokenization services, develop a taxonomy following Nickerson et al. (2013), and align our analysis with established business model dimensions. Our dataset is based on a three-stage approach incorporating academic literature, consulting reports, and real-world projects. As a result, we identify 16 dimensions, 14 sub-dimensions, and 101 characteristics that improve our understanding of asset tokenization services and provide a starting point for further research

Spotlight on DeFi Centerpieces Towards an Economic Perspective on Asset Tokenization Services

Experts consider tokenization a potentially disruptive blockchain-based innovation. Cryptographic tokens can represent ownership of tangible and intangible assets in the digital space, serve as a store of value and proof of ownership, and enable investments in historically illiquid assets. While there are promising use cases for these new technological capabilities, research on economic perspectives is still in its infancy. Therefore, we focus on asset tokenization services, develop a taxonomy following Nickerson et al. (2013), and align our analysis with established business model dimensions. Our dataset is based on a three-stage approach incorporating academic literature, consulting reports, and real-world projects. As a result, we identify 16 dimensions, 14 sub-dimensions, and 101 characteristics that improve our understanding of asset tokenization services and provide a starting point for further research