Fundamental Pricing of Utility Tokens

Julien Prat, Vincent Danos and Stefania Marcassa

No 2019-11, THEMA Working Papers from THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise

Abstract: We explain how to evaluate the fundamental price of utility tokens. Our model endogenizes the velocity of circulation of tokens and yields a pricing formula that is fully microfounded. According to our approach, tokens are valuable because they have to be immediately accessible when the platform service is needed, a requirement that is reminiscent of the cash-in-advance constraint in the theory of money.

Keywords: Asset pricing; utility tokens; Blockchain; ICOs. (search for similar items in EconPapers)
JEL-codes: G12 G24 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Fundamental Pricing of Utility Tokens (2021)
Working Paper: Fundamental Pricing of Utility Tokens (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:ema:worpap:2019-11

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