Valuation of Loyalty Tokens

Anand Shah

MPRA Paper from University Library of Munich, Germany

Abstract: Valuation of tokens is a wager on the platform adoption. This study investigates the effect of platform adoption on the valuation of loyalty tokens and the contingent claims with the token as an underlying. The platform adoption is modelled using the classical Bass Model. The example selected is that of airmiles, but the approach could be extended to loyalty token with other numeraires as well. After assuming few monetary policy rules for the platform governance, the proposed simple model predicts that the Bass Model parameters could have significant influence on the valuation of loyalty tokens and the contingent claims with the token as an underlying.

Keywords: Tokenomics; Cryptocurrencies; Initial Coin Offering (ICO); Blockchain applications; Bass Model; Option pricing with Bass Model parameters (search for similar items in EconPapers)
JEL-codes: E42 G12 G13 L86 (search for similar items in EconPapers)
Date: 2022-02-01
New Economics Papers: this item is included in nep-mac, nep-ore and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:111986

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