A Dual Incentive Value-Based Paradigm for Improving the Business Market Profitability in Blockchain Token Economy

Chaopeng Guo, Pengyi Zhang, Bangyao Lin and Jie Song
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Chaopeng Guo: Software College, Northeastern University, Shenyang 110000, China
Pengyi Zhang: Software College, Northeastern University, Shenyang 110000, China
Bangyao Lin: Software College, Northeastern University, Shenyang 110000, China
Jie Song: Software College, Northeastern University, Shenyang 110000, China

Mathematics, 2022, vol. 10, issue 3, 1-24

Abstract: Blockchain solves the problem of mutual trust and consensus in the business market of the token economy. In the existing paradigm of blockchain token economy, there are disadvantages of lacking the incentive mechanism, business applications and virtual token value. These shortcomings reduce consumers’ willingness to consume and the profits of the merchants. In this paper, we propose a novel “Dual incentive value-based” paradigm to improve the business market profitability in blockchain token economy. To evaluate our proposed paradigm, we propose a business study case for improving merchants’ environment state. In this case, we set up two economic models and make simulations to validate the profitability. The result shows that merchants with the novel paradigm have 32% more profit compared with those without the paradigm and at most 10% more profitable than those in existing paradigms.

Keywords: blockchain; token economy; incentive mechanism; effects in business market; economic model (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2022
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