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Economics Introduction

Abstract

In the economy of blockchain networks, a lot revolves around tokens. In a public permissioned blockchain, it depends on the respective use case whether tokens in whatever form are useful at all. For some use cases, tokens are simply not needed.

Motivation

When dealing with the economics of blockchain networks, it is particularly important to be clear about which use cases you want to map. Many mechanisms are very important and incredibly useful in public permissionless blockchains. However, since we only have limited and trusted users of the infrastructure through the public permissioned blockchain, some concepts do not make sense at first glance.

However, incentives and fees make sense as these mechanisms can be used to finance the infrastructure and ensure that processes run smoothly as they can also be made attractive through incentives. In addition, fees prevent unnecessary actions or spam-like executions. They can also be used to create value that is attractive to the participating members and thus ensure long-term continuity.

Elaboration

The following sections will focus on the topics of:

  • Incentives or Fees
  • Token Economy

Internal references and dependencies

Lists of internal references and dependencies

Bibliography of selected references

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Contributing authors: David Maas Status of this document: work in progress
Last day modified: 2021-05-26