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Token Economics

Gregory and Mini offer a comprehensive review of the theoretical and practical foundations of token economics. The paper synthesizes existing literature to cons

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Abstract

Gregory and Mini offer a comprehensive review of the theoretical and practical foundations of token economics. The paper synthesizes existing literature to construct a framework for analyzing the value drivers of crypto assets. By distinguishing between utility, governance, and asset-backed tokens, the authors provide a taxonomy that allows researchers to assess the long-term viability of token-based business models. The analysis methodology combines game theory with empirical observations of decentralized finance (DeFi) protocols. The results indicate that successful token economies require a delicate balance between demand-side utility and supply-side inflation mechanisms. The significance of this work lies in its effort to standardize the vocabulary and analytical rigor required to evaluate token projects, moving the field away from purely speculative valuation models toward fundamental economic analysis. Authors: Robert Gregory, Tobias Mini Publication: Academic Paper Publication date: 2025-01-01

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Key findings

  • Tokens require clear utility-to-inflation balancing to maintain value.
  • Governance and utility are distinct economic drivers that require separate analysis.
  • Speculative valuation often obscures the underlying economic fundamentals of token projects.
  • Standardization of terminology is essential for the maturity of the tokenomics field.

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Citation

Robert Gregory, Tobias Mini (2025). Token Economics. Academic Paper. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5136771
Canonical knowledge ID: research:token-economics