Fundamental Pricing of Utility Tokens

Julien Prat, Vincent Danos () and Stefania Marcassa
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Vincent Danos: DI-ENS - Département d'informatique - ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - Inria - Institut National de Recherche en Informatique et en Automatique - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique

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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 JEL CODE: G12; G24 (search for similar items in EconPapers)
Date: 2021-01-04
Note: View the original document on HAL open archive server: https://hal.science/hal-03096267v1
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Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Fundamental Pricing of Utility Tokens (2019)
Working Paper: Fundamental Pricing of Utility Tokens (2019)
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