DSGE on the metaverse

Yunxia Bai, Bofu Zhang and Liuyang Xue

Finance Research Letters, 2023, vol. 56, issue C

Abstract: This paper explores the economic dynamics of the metaverse by using on-chain data of token holdings from a blockchain game. We use the New Keynesian Dynamic Stochastic General Equilibrium (DSGE) model to examine the token inflation of the metaverse economy. We extend the standard DSGE models with in-game cryptocurrency to capture the demand and supply of NFTs assets. We compare the responses to tokenomic shocks that drive the metaverse economy. This paper is the first to use on-chain token holding data and DSGE models to study the metaverse economy.

Keywords: Blockchain; Metaverse economy; DSGE; Tokenomics (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:56:y:2023:i:c:s1544612323004944

DOI: 10.1016/j.frl.2023.104122

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