Optimal Design of Tokenized Markets
| Autor: | Robert M. Townsend, Michael Lee, Antoine Martin |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Optimal design
History Polymers and Plastics programmability ComputingMilieux_LEGALASPECTSOFCOMPUTING settlement uncertainty Information environment Social and professional topics ��� Computing / technology policy Industrial and Manufacturing Engineering Tokenization Intermediary Computer systems organization ��� Distributed architectures Tokenization (data security) asymmetric information Token economy ComputingMilieux_COMPUTERSANDSOCIETY Business Business and International Management Settlement (litigation) Industrial organization |
| Zdroj: | SSRN Electronic Journal. |
| ISSN: | 1556-5068 |
| DOI: | 10.2139/ssrn.3820973 |
| Popis: | Trades in today���s financial system are inherently subject to settlement uncertainty. This paper explores tokenization as a potential technological solution. A token system, by enabling programmability of assets, can be designed to eradicate settlement uncertainty. We study the allocations achieved in a decentralized market with either the legacy settlement system or a token system. Tokenization can improve efficiency in markets subject to a limited commitment problem. However, it also materially alters the information environment, which in turn aggravates a hold-up problem. This limits potential gains from resolving settlement uncertainty, particularly for markets that depend on intermediaries. OASIcs, Vol. 97, 3rd International Conference on Blockchain Economics, Security and Protocols (Tokenomics 2021), pages 8:1-8:1 |
| Databáze: | OpenAIRE |
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