Next Article in Journal
Socioecological Transition in Land and Labour Exploitation in Mallorca: From Slavery to a Low-Wage Workforce, 1229–1576
Next Article in Special Issue
Contextual Impacts on Industrial Processes Brought by the Digital Transformation of Manufacturing: A Systematic Review
Previous Article in Journal
Changing Agro-Pastoral Livelihoods under Collective and Private Land Use in Xinjiang, China
Previous Article in Special Issue
Exploring Organizational Sustainability of Industry 4.0 under the Triple Bottom Line: The Case of a Manufacturing Company
Article Menu
Issue 1 (January-1) cover image

Export Article

Open AccessArticle

Sustainable Growth and Token Economy Design: The Case of Steemit

1
Department of Crypto MBA, Seoul School of Integrated Sciences & Technologies (aSSIST), Seoul 03767, Korea
2
Department of Business Administration, Duksung Women’s University, Seoul 01369, Korea
*
Author to whom correspondence should be addressed.
Sustainability 2019, 11(1), 167; https://doi.org/10.3390/su11010167
Received: 31 October 2018 / Revised: 11 December 2018 / Accepted: 24 December 2018 / Published: 30 December 2018
  |  
PDF [513 KB, uploaded 30 December 2018]
  |  

Abstract

Cryptocurrency blockchain technology is attracting worldwide attention, and the number of initial coin offerings (ICOs) is increasing rapidly. This new economic trend, called cryptoeconomics, can program human behavior through incentive design. A cryptocurrency-based incentive system is not only transparent, but also allows businesses to substitute initial investment costs with cryptocurrency tokens until they are on a sustainable growth trajectory in terms of network effects. This study aims to propose a process for building a desirable model of a token economy, based on the case of Steemit—a blogging and social networking website that is creating high values due to its efficient token economy model. We suggest the following design process of a token economy model: (1) Determine token-business fit, (2) determine the chance of success, (3) determine the properties of token, (4) give tokens intrinsic value, (5) establish strategies to raise token value, (6) establish operational strategies of token economy system, (7) establish strategies for token liquidation, and (8) continue modifying the operational base. Considering cryptoeconomics is still at an early stage, it is expected that the guidelines on the token economy model suggested in this paper will lay a significant foundation for the development of cryptoeconomics research. View Full-Text
Keywords: cryptocurrency; blockchain; cryptoeconomics; ICO; token economy; Steemit cryptocurrency; blockchain; cryptoeconomics; ICO; token economy; Steemit
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Kim, M.S.; Chung, J.Y. Sustainable Growth and Token Economy Design: The Case of Steemit. Sustainability 2019, 11, 167.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top