From cc694c9808919e83642377890f89d9eb44354e44 Mon Sep 17 00:00:00 2001 From: Mark Van de Vyver Date: Mon, 12 Dec 2022 08:36:57 +1100 Subject: [PATCH 1/9] Grant: Substrate Tokenomics Survey Substrate Tokenomics - The state of (rational) play Signed-off-by: Mark Van de Vyver --- applications/tokenomics-survey-2022.md | 296 +++++++++++++++++++++++++ 1 file changed, 296 insertions(+) create mode 100644 applications/tokenomics-survey-2022.md diff --git a/applications/tokenomics-survey-2022.md b/applications/tokenomics-survey-2022.md new file mode 100644 index 00000000000..e33d9fbf4a4 --- /dev/null +++ b/applications/tokenomics-survey-2022.md @@ -0,0 +1,296 @@ +# Substrate Tokenomics: The state of (rational) play + +- **Team Name:** Mark Van de Vyver [PhD(Dist)](https://www.student.uwa.edu.au/course/award-verification-service?family=van+de+vyver&family_partial=on&given=mark&search=Search) +- **Payment Address:** To be provided (e.g. 0x8920... (DAI)) +- **[Level](https://github.com/w3f/Grants-Program/tree/master#level_slider-levels):** 3 + +## Project Overview :page_facing_up: + +### Overview + +A survey of some economic models used to develop Substrate (Dotsama) blockchain/token economies. +The literature reviewed will be from the rational expectations equilibrium (a.k.a. no-arbitrage) approach to economic analysis. + +- Description: + The decision making of Substrate developers (and other stakeholders) is assisted if a hypothetical/proposed token-economy can be described by reference, or analogy, to a known working/successful token-economy. Absent an existing implementation, developers are left to invent a token-economy, try to adapt an existing non-blockchain experience to a blockchain, or try to adapt non-blockchain ideas to a blockchain. +- This project provides a survey to help think through various choices and their trade-offs, it does not offer the answer to any particular token-economy design question. It does so by reviewing the current state of play, as it is described in: a) Published research, b) Working papers, c) Blockchain whitepapers. +- Substrate (Dotsama) integration: + I aim to provide a creative synthesis of existing token-economy research rather than a catalogue of recent articles. + Specifically, the central features and concerns across Dotsama Token-Economy networks will be identified. + Ultimately, the reader should learn something about the features of the token-economies of Dotsama networks and understand how some of the issues raised by the token-economy research are addressed by the Dotsama networks token-economy designs, while others are not. Descriptions and explanations will be made in terms centered around the content of specific pivotal papers or pivotal ideas. + Summary tables will highlight the key differentiating characteristics of different Dotsama blockchain network token-economies. + Existing economic models/frameworks that encompass current Dotsama token-economy implementations as special cases will be identified. + Pior and recent token-economy research, that has yet to be implemented in Dotsama blockchain networks, will be canvassed. +- Motivation: + A Substrate/Dotsama project we are developing envisions the use of Substrate relay and Parachains in such a manner that our (imagined) token use is, apparently, novel. The state of play in token-economics appears to be a debate [around staking and inflation](https://forum.polkadot.network/t/should-parachains-have-staking-inflation/806). A search of docs.substrate.io for "tokenomics" and "token-economics" returns no results. We had expected a reference to, or high-level summary of, the token-economies of parachains elected to the Polkadot relay chain. Ideally, we hoped to find high level descriptions of some token-economy features that are enabled by the distinct features of Substrate and its pallets, possibly with links to case studies or other resources. This survey article will provide some of that information. Inclusion of any of this information in Substrate/Dotsama documentation is out of scope. + +## Project Details + +### Mockups/designs of any UI components + +This project is research oriented and as such there are no UI components to test. + +### Technology stack + +LaTeX (incl. build scripts), PDF, HTML. + +### PoC/MVP + +One of the elements will be summary tables, using attributes such as these: + +- Network +- Token +- Token Type +- Model Type +- Economy Type +- Sector Type +- Production Type +- Monetary Type +- Agent Utility +- Economic Sectors +- Rate Curves +- Riskless Rate +- Risk Premium +- Market Rate +- Borrow/Lend +- Lender of Last Resort + +Another component of this research is creating a token-categorization (questionnaire(s) or decision tree) that will aid/inform the specification of a token-economy. Nonetheless, there are already schemes that are useful even at this early stage. Such as these [Token Types (Burnie, Burnie and Henderson (2018))](https://doi.org/10.5195/ledger.2018.121): + +- fuel-tokens: "underpin generic blockchain applications". I refine this definition as follows: The token yield is defined or modeled such that it provides holders with incentives to act for the purpose of ensuring the blockchain has the desired features/characteristics. +- transaction-tokens: "act as a cash substitute" +- voucher-tokens: "exchanged for a predefined asset". I include goods or services. + +Effectively the objective is to arrive at a survey of current state of token-economy development, that forms the basis of a more forward looking "tokenomics", and a practical example aimed at Dotsama/Substrate developers without any formal training in economics. These are intended as a future projects. + +### Out of scope + +- Crypto currencies/stable coins. +- Proof-of-work vs Proof-of-stake considerations, e.g. [Blockchain economics](https://scholar.princeton.edu/sites/default/files/markus/files/blockchain_paper_v7a.pdf). +- Governance considerations, e.g. trust and reputation. +- Game theory, behavioral economics/finance. +- Empirical inference of token-economy attributes from time-series or cross-sectional regression analysis. +- A review of the general economic modeling literature i.e. not related to blockchains. +- Substrate/Dotsama documentation. +- Verifying the network token-economy has been implemented as specified in the network whitepaper. +- Verifying the network whitepaper assumptions are a reasonable/plausible description of the network participants. + +#### Crypto-Currencies + +Their prevalence means the decision to exclude cryptocurrencies warrants some explanation. +Equilibria are generally explicitly constructed (which proves existence) using conjectured properties of the dividends (or an equivalent) from the economic activity. Specifically, a price is the present-value (i.e. discounted for time and non-diversifiable risk), of all future dividends. Since the dividends of fiat currencies are zero this approach does not work. While there are workarounds, they, being particular, are not of interest in the more general setting we wish to bring to light. +This decision is not indiscriminate nor superficial, so analysis such as ["A model of cryptocurrencies"](https://www.nber.org/system/files/working_papers/w26816/w26816.pdf) is within the scope of this project. + +### Ecosystem Fit + +- Where and how does your project fit into the ecosystem? + - Research into the design of a token-economy and survey of Polkadot token-economies. +- Who is your target audience? + - Dotsama/Substrate Relay and Parachain developers. Industry analysts/advisors (media and investors). +- What need(s) does your project meet? + Developers and analysts need to understand the choices/trade-offs available when developing their token-economy. + The set of modeling choices we canvas is defined by the exiting literature, both theoretical and applied (network whitepapers). +- Are there any other projects similar to yours in the Substrate / Polkadot / Kusama ecosystem? + No + - If not, are there similar projects in related ecosystems? + No + +## Team :busts_in_silhouette: + +### Team members + +- Mark Van de Vyver [PhD(Dist)](https://www.student.uwa.edu.au/course/award-verification-service?family=van+de+vyver&family_partial=on&given=mark&search=Search) + +### Contact + +- **Contact Name:** Mark Van de Vyver [PhD(Dist)](https://www.student.uwa.edu.au/course/award-verification-service?family=van+de+vyver&family_partial=on&given=mark&search=Search) +- **Contact Email:** mark@taqtiqa.com + +### Legal Structure + +- **Registered Address:** 9681 41st St NE, Saint Michael, MN 55376 +- **Registered Legal Entity:** Begley Brothers Inc. + +### Team's experience + +Research interests + +- Time series analysis of price series and pricing model performance. +- Market Microstructure theory and empirical studies. +- Option pricing and real options/asset pricing. + +The University of Western Australia (1994-2003): +Postgraduate and undergraduate teaching and research supervision. Portfolio Management, Corporate Finance and Derivatives Securities. Co-developed (with Prof R. Maller and Prof A. Szimayer) the University’s joint Undergraduate and Postgraduate Degrees in Mathematics and Finance. + +The University of Sydney (2003-2008): +Postgraduate and undergraduate teaching and research supervision. Advanced Asset Pricing, Corporate Finance, Investments and Advanced Portfolio Management + +#### Publications + +- [Order imbalance period by period](https://www.researchgate.net/publication/228464696_Order_imbalance_period_by_period), 2008, Asli Ascioglu, Thomas H. Mcinish (Wunderlich Chair) and Mark Van de Vyver +- [Testing for reduction to random walk in autoregressive conditional heteroskedasticity models](https://doi.org/10.1111/1368-423X.t01-1-00090), December 2002, Econometrics Journal, Claudia Kluppelberg, Ross Maller, Mark Van de Vyver, Derick Wee +- [How Might Companies Value Esos?](https://doi.org/10.1111/j.1835-2561.2002.tb00191.x), March 2002, Australian Accounting Review, Ross Maller, Rosemary Tan, Mark Van de Vyver + +### Team Code Repos + +Personal + +- https://github.com/taqtiqa-mark +- https://github.com/bbros-dev +- https://github.com/taqtiqa +- https://github.com/BegleyBrothers + +### Team LinkedIn Profiles (if available) + +- https://www.linkedin.com/in/tatiqa/ + +## Development Status :open_book: + +- links to improvement requests for proposals or [RFPs](https://github.com/w3f/Grants-Program/tree/master/rfp-proposal): + - [Designing UpChain: a framework for securing Substrate runtime upgrades and Substrate network upgrades](https://github.com/w3f/Grants-Program/pull/1309) +- academic publications relevant to the problem: + One of the products from this research will be such a listing under three categories: + - Published articles + - Working papers + - Polkadot parachain whitepapers + The current (incomplete) list of research to be investigated is: + - A Taxonomy of Blockchain-Based Systems for Architecture Design + - An Economic Analysis of Blockchains + - Assets on the blockchain: An empirical study of Tokenomics + - Bitcoin: Economics, technology, and governance. + - Bitcoins as an Investment or Speculative Vehicle? A First Look. + - Blockchain and the Economics of Crypto-tokens and Initial Coin Offerings + - Blockchain Disruption and Smart Contracts + - Blockchain, Bitcoin, and ICOs: a review and research agenda + - Blockchains, Real-time Accounting, and the Future of Credit Risk Modeling + - Economic Simulation of Cryptocurrencies and Their Control Mechanisms + - Interdependencies between Mining Costs, Mining Rewards and Blockchain Security + - Redeemable Platform Currencies + - Some simple bitcoin economics + - Some Simple Economics of the Blockchain + - Sustainable Growth and Token Economy Design: The Case of Steemit + - The Blockchain Folk Theorem + - The Blockchain Folk Theorem + - The Economics of BitCoin Price Formation + - The Economics of Distributed Ledger Technology for Securities Settlement + - The nature of the firm + - The token’s secret: the two-faced financial incentive of the token economy + - Token-based platform finance + - Tokenomics: Dynamic Adoption and Valuation + - Understanding token-based ecosystems – a taxonomy of blockchain-based business models of start-ups + - Valuation of Loyalty Tokens +- links to your research diary, blog posts, articles, forum discussions or open GitHub issues: + - [Tokenomics: Grant models](https://forum.polkadot.network/t/tokenomics-grant-models/1266) +- references to conversations you might have had related to this project with anyone from the Web3 Foundation + There have been no conversations related to this project with anyone from the Web3 Foundation. +- previous interface iterations, such as mock-ups and wireframes: + This project is research oriented and as such there are no mock-ups and wireframes to test. + +## Development Roadmap :nut_and_bolt: + +### Milestone 1 — Data gathering & Polkadot Networks + +- **Estimated duration:** 6 weeks +- **FTE:** 1 +- **Costs:** 18,000 USD + +| Number | Deliverable | Specification | +| -----: | ----------- | ------------- | +| 0a. | License | Creative Commons Attribution 4.0 International License (article), Dual Apache 2 or MIT License (code) | +| 0b. | Documentation | We will provide both **PDF** and **HTML** versions of the working paper. | +| 0c. | Testing and Testing Guide | Milestone 1 is research oriented and as such there is no code to test. | +| 0d. | Docker | Milestone 1 is research oriented and as such there is no Dockerfile(s) that can be used to test all the functionality delivered with this milestone. | +| 0e. | Article | We will publish an **working paper** as indcated above. | +| 0e.2 | - Dotsama Economies | What are the central features and concerns across Dotsama Token-Economy networks? | +| 0e.3 | - Structural Models | What are the structural approaches to creating a Token-Economy? | +| 0e.4 | - Reduced Form Models | What are the reduced form approaches to creating a Token-Economy? | +| 1. | Substrate modules | Milestone 1 is research oriented and as such there is no Substrate module or chain functionality to implement. | +| 2. | Substrate chain | Milestone 1 is research oriented and as such there is no Substrate chain functionality to implement. | +| 3. | Library | Milestone 1 is research oriented and as such there is no JS library that will implement the functionality described. | +| 4. | Smart contracts | Milestone 1 is research oriented and as such there is no ink! smart contracts that will implement the functionality described. | + +### Milestone 2 — Outline Article + +- **Estimated duration:** 6 weeks +- **FTE:** 1 +- **Costs:** 18,000 USD + +| Number | Deliverable | Specification | +| -----: | ----------- | ------------- | +| 0a. | License | Creative Commons Attribution 4.0 International License (article), Dual Apache 2 or MIT License (code) | +| 0b. | Documentation | We will provide both **PDF** and **HTML** versions of the working paper. | +| 0c. | Testing and Testing Guide | Milestone 2 is research oriented and as such there is no code to test. | +| 0d. | Docker | Milestone 2 is research oriented and as such there is no Dockerfile(s) that can be used to test all the functionality delivered with this milestone. | +| 0e. | Article | We will publish an **working paper** as indcated above. | +| 0e.2 | - Partial Equilibrium Models | What token-economy features do the partial equilibrium approaches address? | +| 0e.3 | - General Equilibrium Models | What token-economy features do the general equilibrium approaches address? | +| 1. | Substrate modules | Milestone 2 is research oriented and as such there is no Substrate module or chain functionality to implement. | +| 2. | Substrate chain | Milestone 2 is research oriented and as such there is no Substrate chain functionality to implement. | +| 3. | Library | Milestone 2 is research oriented and as such there is no JS library that will implement the functionality described. | +| 4. | Smart contracts | Milestone 2 is research oriented and as such there is no ink! smart contracts that will implement the functionality described. | + +### Milestone 3 — Finalize Article + +- **Estimated Duration:** 6 weeks +- **FTE:** 1 +- **Costs:** 18,000 USD + +Finalize the flow-chart/decision-tree that will help developers place their token in the following contexts: + +- Token Type +- Model Type +- Economy Type +- Sector Type +- Production Type +- Monetary Type + +Finalize the literature survey. +Synthesize the descriptions of the Polkadot Parchain networks in the context of the existing token-economics literature. +Identify implementation opportunities suggested by the current literature. +Identify unexplored approaches to creating a Token-Economy, and any known issues. +Promote the working paper, incorporate feedback. + +| Number | Deliverable | Specification | +| -----: | ----------- | ------------- | +| 0a. | License | Creative Commons Attribution 4.0 International License (article), Dual Apache 2 or MIT License (code) | +| 0b. | Documentation | We will provide both **PDF** and **HTML** versions of the working paper. | +| 0c. | Testing and Testing Guide | Milestone 3 is research oriented and as such there is no code to test. | +| 0d. | Docker | Milestone 3 is research oriented and as such there is no Dockerfile(s) that can be used to test all the functionality delivered with this milestone. | +| 0e. | Article | We will publish an **working paper** as indcated above. | +| 0e.1 | - Introduction | Place the topic in perspective and motivate non-specialist readers. | +| 0e.2 | - Dotsama Economies | What are the central features and concerns across Dotsama Token-Economy networks? | +| 0e.3 | - Structural Models | What are the structural approaches to creating a Token-Economy? | +| 0e.4 | - Reduced Form Models | What are the reduced form approaches to creating a Token-Economy? | +| 0e.5 | - Partial Equilibrium Models | What token-economy features do the partial equilibrium approaches address? | +| 0e.6 | - General Equilibrium Models | What token-economy features do the general equilibrium approaches address? | +| 0e.7 | - Future Directions | What are unexplored approaches to creating a Token-Economy? | +| 0e.8 | - Summary | Where are we and where to next? | +| 1. | Substrate modules | Milestone 3 is research oriented and as such there is no Substrate module or chain functionality to implement. | +| 2. | Substrate chain | Milestone 3 is research oriented and as such there is no Substrate chain functionality to implement. | +| 3. | Library | Milestone 3 is research oriented and as such there is no JS library that will implement the functionality described. | +| 4. | Smart contracts | Milestone 3 is research oriented and as such there is no ink! smart contracts that will implement the functionality described. | + +## Future Plans + +Please include here + +- how you intend to use, enhance, promote and support your project in the short term, and + - The research article may be accepted for publication, but this is a fraught/political process and should not be considered a deliverable. + - The results will be sent to blockchain websites, bloggers and posted to the Polkadot forum. + - The working paper will be posted to [SSRN (e.g. FEN - Cryptocurrency Research eJournal)](https://papers.ssrn.com/sol3/JELJOUR_Results.cfm?form_name=journalBrowse&journal_id=3839004), [IDEAS](https://ideas.repec.org/), [Arxiv (q-fin.GN)](https://arxiv.org/list/q-fin.GN/recent) +- the team's long-term plans and intentions in relation to it. + - Engage in a more forward-looking/positive analysis of how to design a token-economy, addressing any gaps identified in this review. + - Create a practical "how-to design a Dotsama/Substrate token-economy" series aimed at developers without any relevant economics/finance background. + - Create RFP's addressing pallet functionality gaps that are identified in the course of the above. + +## Additional Information :heavy_plus_sign: + +**How did you hear about the Grants Program?** Web3 Foundation Website + +- Work underway: + - Literature collation + - Type definitions +- If there are any other teams who have already contributed (financially) to the project. + - None +- Previous grants you may have applied for. + - None From e24368c4c3ec2c8034cb246f6b8d3fd972cf69de Mon Sep 17 00:00:00 2001 From: Mark Van de Vyver Date: Tue, 13 Dec 2022 09:05:31 +1100 Subject: [PATCH 2/9] Remove non-research elements Signed-off-by: Mark Van de Vyver --- applications/tokenomics-survey-2022.md | 38 +++++++++++--------------- 1 file changed, 16 insertions(+), 22 deletions(-) diff --git a/applications/tokenomics-survey-2022.md b/applications/tokenomics-survey-2022.md index e33d9fbf4a4..44134513650 100644 --- a/applications/tokenomics-survey-2022.md +++ b/applications/tokenomics-survey-2022.md @@ -170,7 +170,6 @@ Personal - Some Simple Economics of the Blockchain - Sustainable Growth and Token Economy Design: The Case of Steemit - The Blockchain Folk Theorem - - The Blockchain Folk Theorem - The Economics of BitCoin Price Formation - The Economics of Distributed Ledger Technology for Securities Settlement - The nature of the firm @@ -188,6 +187,12 @@ Personal ## Development Roadmap :nut_and_bolt: +### Overview + +- Total Estimated Duration: 4.5 months +- Full-Time Equivalent (FTE): 1 FTE +- Total Costs: 54,000 USD + ### Milestone 1 — Data gathering & Polkadot Networks - **Estimated duration:** 6 weeks @@ -198,16 +203,12 @@ Personal | -----: | ----------- | ------------- | | 0a. | License | Creative Commons Attribution 4.0 International License (article), Dual Apache 2 or MIT License (code) | | 0b. | Documentation | We will provide both **PDF** and **HTML** versions of the working paper. | -| 0c. | Testing and Testing Guide | Milestone 1 is research oriented and as such there is no code to test. | -| 0d. | Docker | Milestone 1 is research oriented and as such there is no Dockerfile(s) that can be used to test all the functionality delivered with this milestone. | -| 0e. | Article | We will publish an **working paper** as indcated above. | +| 0c. | Article build guide | A guide to generating the article and related figures or tables. | +| 0d. | Docker | A Dockerfile(s) that can be used to generate the article PDF and HTML. | +| 0e. | Article | We will publish an **working paper** as indicated above. | | 0e.2 | - Dotsama Economies | What are the central features and concerns across Dotsama Token-Economy networks? | | 0e.3 | - Structural Models | What are the structural approaches to creating a Token-Economy? | | 0e.4 | - Reduced Form Models | What are the reduced form approaches to creating a Token-Economy? | -| 1. | Substrate modules | Milestone 1 is research oriented and as such there is no Substrate module or chain functionality to implement. | -| 2. | Substrate chain | Milestone 1 is research oriented and as such there is no Substrate chain functionality to implement. | -| 3. | Library | Milestone 1 is research oriented and as such there is no JS library that will implement the functionality described. | -| 4. | Smart contracts | Milestone 1 is research oriented and as such there is no ink! smart contracts that will implement the functionality described. | ### Milestone 2 — Outline Article @@ -219,15 +220,12 @@ Personal | -----: | ----------- | ------------- | | 0a. | License | Creative Commons Attribution 4.0 International License (article), Dual Apache 2 or MIT License (code) | | 0b. | Documentation | We will provide both **PDF** and **HTML** versions of the working paper. | -| 0c. | Testing and Testing Guide | Milestone 2 is research oriented and as such there is no code to test. | -| 0d. | Docker | Milestone 2 is research oriented and as such there is no Dockerfile(s) that can be used to test all the functionality delivered with this milestone. | -| 0e. | Article | We will publish an **working paper** as indcated above. | +| 0c. | Article build guide | A guide to generating the article and related figures or tables. | +| 0d. | Docker | A Dockerfile(s) that can be used to generate the article PDF and HTML. | +to test all the functionality delivered with this milestone. | +| 0e. | Article | We will publish an **working paper** as indicated above. | | 0e.2 | - Partial Equilibrium Models | What token-economy features do the partial equilibrium approaches address? | | 0e.3 | - General Equilibrium Models | What token-economy features do the general equilibrium approaches address? | -| 1. | Substrate modules | Milestone 2 is research oriented and as such there is no Substrate module or chain functionality to implement. | -| 2. | Substrate chain | Milestone 2 is research oriented and as such there is no Substrate chain functionality to implement. | -| 3. | Library | Milestone 2 is research oriented and as such there is no JS library that will implement the functionality described. | -| 4. | Smart contracts | Milestone 2 is research oriented and as such there is no ink! smart contracts that will implement the functionality described. | ### Milestone 3 — Finalize Article @@ -254,9 +252,9 @@ Promote the working paper, incorporate feedback. | -----: | ----------- | ------------- | | 0a. | License | Creative Commons Attribution 4.0 International License (article), Dual Apache 2 or MIT License (code) | | 0b. | Documentation | We will provide both **PDF** and **HTML** versions of the working paper. | -| 0c. | Testing and Testing Guide | Milestone 3 is research oriented and as such there is no code to test. | -| 0d. | Docker | Milestone 3 is research oriented and as such there is no Dockerfile(s) that can be used to test all the functionality delivered with this milestone. | -| 0e. | Article | We will publish an **working paper** as indcated above. | +| 0c. | Article build guide | A guide to generating the article and related figures or tables. | +| 0d. | Docker | A Dockerfile(s) that can be used to generate the article PDF and HTML. | +| 0e. | Article | We will publish an **working paper** as indicated above. | | 0e.1 | - Introduction | Place the topic in perspective and motivate non-specialist readers. | | 0e.2 | - Dotsama Economies | What are the central features and concerns across Dotsama Token-Economy networks? | | 0e.3 | - Structural Models | What are the structural approaches to creating a Token-Economy? | @@ -265,10 +263,6 @@ Promote the working paper, incorporate feedback. | 0e.6 | - General Equilibrium Models | What token-economy features do the general equilibrium approaches address? | | 0e.7 | - Future Directions | What are unexplored approaches to creating a Token-Economy? | | 0e.8 | - Summary | Where are we and where to next? | -| 1. | Substrate modules | Milestone 3 is research oriented and as such there is no Substrate module or chain functionality to implement. | -| 2. | Substrate chain | Milestone 3 is research oriented and as such there is no Substrate chain functionality to implement. | -| 3. | Library | Milestone 3 is research oriented and as such there is no JS library that will implement the functionality described. | -| 4. | Smart contracts | Milestone 3 is research oriented and as such there is no ink! smart contracts that will implement the functionality described. | ## Future Plans From cf135ce73b4ea502f94d1105aaa47a1330e17a17 Mon Sep 17 00:00:00 2001 From: Mark Van de Vyver Date: Mon, 19 Dec 2022 19:09:17 +1100 Subject: [PATCH 3/9] Response to reviewer feedback Signed-off-by: Mark Van de Vyver --- applications/tokenomics-survey-2022.md | 136 ++++++++++++------------- 1 file changed, 65 insertions(+), 71 deletions(-) diff --git a/applications/tokenomics-survey-2022.md b/applications/tokenomics-survey-2022.md index 44134513650..c9442904cc7 100644 --- a/applications/tokenomics-survey-2022.md +++ b/applications/tokenomics-survey-2022.md @@ -2,30 +2,51 @@ - **Team Name:** Mark Van de Vyver [PhD(Dist)](https://www.student.uwa.edu.au/course/award-verification-service?family=van+de+vyver&family_partial=on&given=mark&search=Search) - **Payment Address:** To be provided (e.g. 0x8920... (DAI)) -- **[Level](https://github.com/w3f/Grants-Program/tree/master#level_slider-levels):** 3 +- **[Level](https://github.com/w3f/Grants-Program/tree/master#level_slider-levels):** 2 ## Project Overview :page_facing_up: ### Overview -A survey of some economic models used to develop Substrate (Dotsama) blockchain/token economies. +A survey of some economic models used to develop Substrate (Polkadot) blockchain/token economies. The literature reviewed will be from the rational expectations equilibrium (a.k.a. no-arbitrage) approach to economic analysis. +This is a survey, hence limited to topics the existing literature addresses. Within the scope of the deliverables, I am not committing to solving any particular token-economy design question. +The report/working paper will be posted to [SSRN (e.g. FEN - Cryptocurrency Research eJournal)](https://papers.ssrn.com/sol3/JELJOUR_Results.cfm?form_name=journalBrowse&journal_id=3839004), [IDEAS](https://ideas.repec.org/), [Arxiv (q-fin.GN)](https://arxiv.org/list/q-fin.GN/recent). - Description: The decision making of Substrate developers (and other stakeholders) is assisted if a hypothetical/proposed token-economy can be described by reference, or analogy, to a known working/successful token-economy. Absent an existing implementation, developers are left to invent a token-economy, try to adapt an existing non-blockchain experience to a blockchain, or try to adapt non-blockchain ideas to a blockchain. -- This project provides a survey to help think through various choices and their trade-offs, it does not offer the answer to any particular token-economy design question. It does so by reviewing the current state of play, as it is described in: a) Published research, b) Working papers, c) Blockchain whitepapers. -- Substrate (Dotsama) integration: - I aim to provide a creative synthesis of existing token-economy research rather than a catalogue of recent articles. - Specifically, the central features and concerns across Dotsama Token-Economy networks will be identified. - Ultimately, the reader should learn something about the features of the token-economies of Dotsama networks and understand how some of the issues raised by the token-economy research are addressed by the Dotsama networks token-economy designs, while others are not. Descriptions and explanations will be made in terms centered around the content of specific pivotal papers or pivotal ideas. - Summary tables will highlight the key differentiating characteristics of different Dotsama blockchain network token-economies. - Existing economic models/frameworks that encompass current Dotsama token-economy implementations as special cases will be identified. - Pior and recent token-economy research, that has yet to be implemented in Dotsama blockchain networks, will be canvassed. +- This project provides a survey to help think through various choices and their trade-offs, it does not offer the answer to any particular token-economy design question. It does so by reviewing the current state of play, as it is described in: a) published general-blockchain research, b) general-blockchain working papers, c) Polkadot whitepapers. +- Substrate integration: + With Substrate Token-Economy networks in mind, I aim to provide a creative synthesis of existing general-blockchain token-economy research rather than a catalogue of recent articles. + Specifically, the central features and concerns across Substrate Token-Economy networks will be identified, using Polkadot as a point of reference. + Ultimately, the reader should learn something about those features of the token-economies of Substrate networks and understand how some of the issues raised by the general-blockchain token-economy research are addressed by Polkadot token-economy designs, while others are not. Descriptions and explanations will be made in terms centered around the content of specific pivotal papers or pivotal ideas. + Summary tables will highlight the key differentiating characteristics of different Polkadot blockchain network token-economies. - Motivation: - A Substrate/Dotsama project we are developing envisions the use of Substrate relay and Parachains in such a manner that our (imagined) token use is, apparently, novel. The state of play in token-economics appears to be a debate [around staking and inflation](https://forum.polkadot.network/t/should-parachains-have-staking-inflation/806). A search of docs.substrate.io for "tokenomics" and "token-economics" returns no results. We had expected a reference to, or high-level summary of, the token-economies of parachains elected to the Polkadot relay chain. Ideally, we hoped to find high level descriptions of some token-economy features that are enabled by the distinct features of Substrate and its pallets, possibly with links to case studies or other resources. This survey article will provide some of that information. Inclusion of any of this information in Substrate/Dotsama documentation is out of scope. + A project we are developing envisions the use of Substrate relay and Parachains in such a manner that our (imagined) token use is, apparently, novel. The state of play in token-economics appears to be a debate [around staking and inflation](https://forum.polkadot.network/t/should-parachains-have-staking-inflation/806). A search of docs.substrate.io for "tokenomics" and "token-economics" returns no results. We had expected a reference to, or high-level summary of, the token-economies of parachains elected to the Polkadot relay chain. Ideally, we hoped to find high level descriptions of some token-economy features that are enabled by the distinct features of Substrate and its pallets, possibly with links to case studies or other resources. This survey article will provide some of that information. Inclusion of any of this information in Substrate/Polkadot documentation is out of scope. ## Project Details +The literature review component of this exercise will be closest to a "Rapid Review", see Grant MJ, Booth A. A typology of reviews: an analysis of 14 review types and associated methodologies. Health Info Libr J. 2009 Jun; 26(2):91-108. doi: 10.1111/j.1471-1842.2009.00848.x. Review. PubMed PMID: 19490148. + +Each section of the report/working paper will be developed using some subset of the following iterative process (Tsafnat, G., Glasziou, P., Choong, M.K. et al. Systematic review automation technologies. Syst Rev 3, 74 (2014). ) + +- Review reporting guidelines, best practice handbooks, and training modules [preparation stage] +- Formulate question and decide on review type [preparation stage] +- Search for previous published literature [preparation stage] +- Develop and test search strategies [preparation stage] +- Review search strategies [preparation stage] +- Execute search [retrieval stage] +- De-duplicate data/information [retrieval stage] +- Screen title and abstracts [screening stage] +- Retrieve full-text articles [retrieval stage] +- Screen articles in full-text [screening stage] +- Search for grey literature (preprints, working papers) [retrieval stage] +- Quality assessment and data/information extraction [synthesis stage] +- Citation chasing [retrieval stage] +- Update database searches [retrieval stage] +- Synthesize data/information [synthesis stage] +- Manuscript development [write-up stage] + ### Mockups/designs of any UI components This project is research oriented and as such there are no UI components to test. @@ -36,7 +57,7 @@ LaTeX (incl. build scripts), PDF, HTML. ### PoC/MVP -One of the elements will be summary tables, using attributes such as these: +One of the elements will be summary tables, using attributes that arise naturally within a Rational Expectations Equilibrium framework, such as the following: - Network - Token @@ -55,23 +76,24 @@ One of the elements will be summary tables, using attributes such as these: - Borrow/Lend - Lender of Last Resort -Another component of this research is creating a token-categorization (questionnaire(s) or decision tree) that will aid/inform the specification of a token-economy. Nonetheless, there are already schemes that are useful even at this early stage. Such as these [Token Types (Burnie, Burnie and Henderson (2018))](https://doi.org/10.5195/ledger.2018.121): +Another component of this research is creating a token-categorization (questionnaire(s) or decision trees) that will aid/inform the specification of a token-economy. Nonetheless, there are already schemes that are useful even at this early stage. Such as these [Token Types (Burnie, Burnie and Henderson (2018))](https://doi.org/10.5195/ledger.2018.121): - fuel-tokens: "underpin generic blockchain applications". I refine this definition as follows: The token yield is defined or modeled such that it provides holders with incentives to act for the purpose of ensuring the blockchain has the desired features/characteristics. - transaction-tokens: "act as a cash substitute" - voucher-tokens: "exchanged for a predefined asset". I include goods or services. -Effectively the objective is to arrive at a survey of current state of token-economy development, that forms the basis of a more forward looking "tokenomics", and a practical example aimed at Dotsama/Substrate developers without any formal training in economics. These are intended as a future projects. +Effectively the objective is to arrive at a survey of current state of token-economy development, that forms the basis of a more forward looking "tokenomics", and a practical example aimed at Polkadot/Substrate developers without any formal training in economics. These are intended as a future projects. ### Out of scope - Crypto currencies/stable coins. +- What is considered a security and what is not. - Proof-of-work vs Proof-of-stake considerations, e.g. [Blockchain economics](https://scholar.princeton.edu/sites/default/files/markus/files/blockchain_paper_v7a.pdf). - Governance considerations, e.g. trust and reputation. - Game theory, behavioral economics/finance. - Empirical inference of token-economy attributes from time-series or cross-sectional regression analysis. - A review of the general economic modeling literature i.e. not related to blockchains. -- Substrate/Dotsama documentation. +- Substrate/Polkadot documentation. - Verifying the network token-economy has been implemented as specified in the network whitepaper. - Verifying the network whitepaper assumptions are a reasonable/plausible description of the network participants. @@ -79,14 +101,13 @@ Effectively the objective is to arrive at a survey of current state of token-eco Their prevalence means the decision to exclude cryptocurrencies warrants some explanation. Equilibria are generally explicitly constructed (which proves existence) using conjectured properties of the dividends (or an equivalent) from the economic activity. Specifically, a price is the present-value (i.e. discounted for time and non-diversifiable risk), of all future dividends. Since the dividends of fiat currencies are zero this approach does not work. While there are workarounds, they, being particular, are not of interest in the more general setting we wish to bring to light. -This decision is not indiscriminate nor superficial, so analysis such as ["A model of cryptocurrencies"](https://www.nber.org/system/files/working_papers/w26816/w26816.pdf) is within the scope of this project. ### Ecosystem Fit - Where and how does your project fit into the ecosystem? - Research into the design of a token-economy and survey of Polkadot token-economies. - Who is your target audience? - - Dotsama/Substrate Relay and Parachain developers. Industry analysts/advisors (media and investors). + - Polkadot/Substrate Relay and Parachain developers. Industry analysts/advisors (media and investors). - What need(s) does your project meet? Developers and analysts need to understand the choices/trade-offs available when developing their token-economy. The set of modeling choices we canvas is defined by the exiting literature, both theoretical and applied (network whitepapers). @@ -148,36 +169,12 @@ Personal - links to improvement requests for proposals or [RFPs](https://github.com/w3f/Grants-Program/tree/master/rfp-proposal): - [Designing UpChain: a framework for securing Substrate runtime upgrades and Substrate network upgrades](https://github.com/w3f/Grants-Program/pull/1309) +- As requested, I have adjusted the source of the research to eliminate myself as the source of bias in the collection of research papers. - academic publications relevant to the problem: One of the products from this research will be such a listing under three categories: - - Published articles - - Working papers - - Polkadot parachain whitepapers - The current (incomplete) list of research to be investigated is: - - A Taxonomy of Blockchain-Based Systems for Architecture Design - - An Economic Analysis of Blockchains - - Assets on the blockchain: An empirical study of Tokenomics - - Bitcoin: Economics, technology, and governance. - - Bitcoins as an Investment or Speculative Vehicle? A First Look. - - Blockchain and the Economics of Crypto-tokens and Initial Coin Offerings - - Blockchain Disruption and Smart Contracts - - Blockchain, Bitcoin, and ICOs: a review and research agenda - - Blockchains, Real-time Accounting, and the Future of Credit Risk Modeling - - Economic Simulation of Cryptocurrencies and Their Control Mechanisms - - Interdependencies between Mining Costs, Mining Rewards and Blockchain Security - - Redeemable Platform Currencies - - Some simple bitcoin economics - - Some Simple Economics of the Blockchain - - Sustainable Growth and Token Economy Design: The Case of Steemit - - The Blockchain Folk Theorem - - The Economics of BitCoin Price Formation - - The Economics of Distributed Ledger Technology for Securities Settlement - - The nature of the firm - - The token’s secret: the two-faced financial incentive of the token economy - - Token-based platform finance - - Tokenomics: Dynamic Adoption and Valuation - - Understanding token-based ecosystems – a taxonomy of blockchain-based business models of start-ups - - Valuation of Loyalty Tokens + 1. Published articles: As requested, to eliminate bias (and constrain budget) in the collection of research papers, the initial source of the published research will be the top-10 articles provided by the State Library of New South Wales information search service in response to the following query, "Refereed articles on block-chain token-economics using rational expectations equilibrium (a.k.a. no-arbitrage) arguments/analysis, ranked by journal impact factors" + 2. Working papers: Those papers that explicitly address improving/extending an article in the top-10 of the articles in 1) above. + 3. Polkadot Parachain whitepapers: These are from projects that are Polkadot-Parachains as at 19 December 2022. - links to your research diary, blog posts, articles, forum discussions or open GitHub issues: - [Tokenomics: Grant models](https://forum.polkadot.network/t/tokenomics-grant-models/1266) - references to conversations you might have had related to this project with anyone from the Web3 Foundation @@ -190,31 +187,30 @@ Personal ### Overview - Total Estimated Duration: 4.5 months -- Full-Time Equivalent (FTE): 1 FTE -- Total Costs: 54,000 USD +- Full-Time Equivalent (FTE): 0.8 FTE +- Total Costs: 42,000 USD ### Milestone 1 — Data gathering & Polkadot Networks - **Estimated duration:** 6 weeks - **FTE:** 1 -- **Costs:** 18,000 USD +- **Costs:** 14,000 USD | Number | Deliverable | Specification | | -----: | ----------- | ------------- | -| 0a. | License | Creative Commons Attribution 4.0 International License (article), Dual Apache 2 or MIT License (code) | -| 0b. | Documentation | We will provide both **PDF** and **HTML** versions of the working paper. | +| 0a. | License | Creative Commons Attribution 4.0 International License (article), Dual Apache 2 or MIT License (code) | +| 0b. | Data collection | Collect published, working and network papers. | | 0c. | Article build guide | A guide to generating the article and related figures or tables. | | 0d. | Docker | A Dockerfile(s) that can be used to generate the article PDF and HTML. | | 0e. | Article | We will publish an **working paper** as indicated above. | -| 0e.2 | - Dotsama Economies | What are the central features and concerns across Dotsama Token-Economy networks? | -| 0e.3 | - Structural Models | What are the structural approaches to creating a Token-Economy? | -| 0e.4 | - Reduced Form Models | What are the reduced form approaches to creating a Token-Economy? | +| 0e.1 | - Section: Methodology | The research methodology. | +| 0e.2 | - Section: Polkadot Economies | What are the central features and concerns across Polkadot Token-Economy networks? | ### Milestone 2 — Outline Article - **Estimated duration:** 6 weeks -- **FTE:** 1 -- **Costs:** 18,000 USD +- **FTE:** 0.8 +- **Costs:** 14,000 USD | Number | Deliverable | Specification | | -----: | ----------- | ------------- | @@ -224,14 +220,14 @@ Personal | 0d. | Docker | A Dockerfile(s) that can be used to generate the article PDF and HTML. | to test all the functionality delivered with this milestone. | | 0e. | Article | We will publish an **working paper** as indicated above. | -| 0e.2 | - Partial Equilibrium Models | What token-economy features do the partial equilibrium approaches address? | -| 0e.3 | - General Equilibrium Models | What token-economy features do the general equilibrium approaches address? | +| 0e.4 | - Section: Reduced Form Models | What are the reduced form approaches to creating a Token-Economy? | +| 0e.3 | - Section: Structural Models | What are the structural approaches to creating a Token-Economy? | ### Milestone 3 — Finalize Article - **Estimated Duration:** 6 weeks -- **FTE:** 1 -- **Costs:** 18,000 USD +- **FTE:** 0.8 +- **Costs:** 14,000 USD Finalize the flow-chart/decision-tree that will help developers place their token in the following contexts: @@ -243,10 +239,9 @@ Finalize the flow-chart/decision-tree that will help developers place their toke - Monetary Type Finalize the literature survey. -Synthesize the descriptions of the Polkadot Parchain networks in the context of the existing token-economics literature. -Identify implementation opportunities suggested by the current literature. -Identify unexplored approaches to creating a Token-Economy, and any known issues. +Synthesize the descriptions of the Polkadot Parachain networks in the context of the existing token-economics literature. Promote the working paper, incorporate feedback. +The report/working paper will be posted to [SSRN (e.g. FEN - Cryptocurrency Research eJournal)](https://papers.ssrn.com/sol3/JELJOUR_Results.cfm?form_name=journalBrowse&journal_id=3839004), [IDEAS](https://ideas.repec.org/), [Arxiv (q-fin.GN)](https://arxiv.org/list/q-fin.GN/recent). | Number | Deliverable | Specification | | -----: | ----------- | ------------- | @@ -255,14 +250,13 @@ Promote the working paper, incorporate feedback. | 0c. | Article build guide | A guide to generating the article and related figures or tables. | | 0d. | Docker | A Dockerfile(s) that can be used to generate the article PDF and HTML. | | 0e. | Article | We will publish an **working paper** as indicated above. | -| 0e.1 | - Introduction | Place the topic in perspective and motivate non-specialist readers. | -| 0e.2 | - Dotsama Economies | What are the central features and concerns across Dotsama Token-Economy networks? | -| 0e.3 | - Structural Models | What are the structural approaches to creating a Token-Economy? | -| 0e.4 | - Reduced Form Models | What are the reduced form approaches to creating a Token-Economy? | -| 0e.5 | - Partial Equilibrium Models | What token-economy features do the partial equilibrium approaches address? | -| 0e.6 | - General Equilibrium Models | What token-economy features do the general equilibrium approaches address? | -| 0e.7 | - Future Directions | What are unexplored approaches to creating a Token-Economy? | -| 0e.8 | - Summary | Where are we and where to next? | +| 0e.1 | - Section: Introduction | Place the topic in perspective and motivate non-specialist readers. Text and tables where relevant/appropriate. | +| 0e.2 | - Section: Polkadot Economies | What are the central features and concerns across Polkadot Token-Economy networks? Text and tables where relevant/appropriate. | +| 0e.3 | - Section: Structural Models | What are the structural approaches to creating a Token-Economy? Text and tables where relevant/appropriate. | +| 0e.4 | - Section: Reduced Form Models | What are the reduced form approaches to creating a Token-Economy? Text and tables where relevant/appropriate. | +| 0e.5 | - Section: Future Directions | What are unexplored approaches to creating a Token-Economy? Text and tables where relevant/appropriate. | +| 0e.6 | - Section: Summary | Where are we and where to next? | +| 0e.7 | - Appendix: Methodology | The research methodology. Text and tables where relevant/appropriate. | ## Future Plans @@ -274,7 +268,7 @@ Please include here - The working paper will be posted to [SSRN (e.g. FEN - Cryptocurrency Research eJournal)](https://papers.ssrn.com/sol3/JELJOUR_Results.cfm?form_name=journalBrowse&journal_id=3839004), [IDEAS](https://ideas.repec.org/), [Arxiv (q-fin.GN)](https://arxiv.org/list/q-fin.GN/recent) - the team's long-term plans and intentions in relation to it. - Engage in a more forward-looking/positive analysis of how to design a token-economy, addressing any gaps identified in this review. - - Create a practical "how-to design a Dotsama/Substrate token-economy" series aimed at developers without any relevant economics/finance background. + - Create a practical "how-to design a Polkadot/Substrate token-economy" series aimed at developers without any relevant economics/finance background. - Create RFP's addressing pallet functionality gaps that are identified in the course of the above. ## Additional Information :heavy_plus_sign: From 918cb6765ab394a9b8d698db8698f5a6ee75a6c0 Mon Sep 17 00:00:00 2001 From: Mark Van de Vyver Date: Fri, 27 Jan 2023 13:17:52 +1100 Subject: [PATCH 4/9] Updated to research template Signed-off-by: Mark Van de Vyver --- applications/tokenomics-survey-2022.md | 169 ++++++++++++++++--------- 1 file changed, 106 insertions(+), 63 deletions(-) diff --git a/applications/tokenomics-survey-2022.md b/applications/tokenomics-survey-2022.md index c9442904cc7..fa58418379b 100644 --- a/applications/tokenomics-survey-2022.md +++ b/applications/tokenomics-survey-2022.md @@ -1,34 +1,50 @@ -# Substrate Tokenomics: The state of (rational) play +# Substrate Tokenomics: - **Team Name:** Mark Van de Vyver [PhD(Dist)](https://www.student.uwa.edu.au/course/award-verification-service?family=van+de+vyver&family_partial=on&given=mark&search=Search) -- **Payment Address:** To be provided (e.g. 0x8920... (DAI)) -- **[Level](https://github.com/w3f/Grants-Program/tree/master#level_slider-levels):** 2 +- **Payment Address:** To be provided (e.g. 0x8920... (USD)) +- **[Level](https://github.com/w3f/Grants-Program/tree/master#level_slider-levels):** 1 ## Project Overview :page_facing_up: ### Overview -A survey of some economic models used to develop Substrate (Polkadot) blockchain/token economies. -The literature reviewed will be from the rational expectations equilibrium (a.k.a. no-arbitrage) approach to economic analysis. +A annotated bibliography of rational expectations equilibrium (a.k.a. no-arbitrage) economic models used to develop blockchain/token economies, as well as the tokenomics of Polkadot Parachains. + This is a survey, hence limited to topics the existing literature addresses. Within the scope of the deliverables, I am not committing to solving any particular token-economy design question. The report/working paper will be posted to [SSRN (e.g. FEN - Cryptocurrency Research eJournal)](https://papers.ssrn.com/sol3/JELJOUR_Results.cfm?form_name=journalBrowse&journal_id=3839004), [IDEAS](https://ideas.repec.org/), [Arxiv (q-fin.GN)](https://arxiv.org/list/q-fin.GN/recent). - Description: The decision making of Substrate developers (and other stakeholders) is assisted if a hypothetical/proposed token-economy can be described by reference, or analogy, to a known working/successful token-economy. Absent an existing implementation, developers are left to invent a token-economy, try to adapt an existing non-blockchain experience to a blockchain, or try to adapt non-blockchain ideas to a blockchain. -- This project provides a survey to help think through various choices and their trade-offs, it does not offer the answer to any particular token-economy design question. It does so by reviewing the current state of play, as it is described in: a) published general-blockchain research, b) general-blockchain working papers, c) Polkadot whitepapers. +- This project provides a annotated bibliography to help think through various choices and their trade-offs, it does not offer the answer to any particular token-economy design question. It does so by reviewing the current state of play, as it is described in: a) published general-blockchain research, b) Polkadot whitepapers. - Substrate integration: - With Substrate Token-Economy networks in mind, I aim to provide a creative synthesis of existing general-blockchain token-economy research rather than a catalogue of recent articles. - Specifically, the central features and concerns across Substrate Token-Economy networks will be identified, using Polkadot as a point of reference. - Ultimately, the reader should learn something about those features of the token-economies of Substrate networks and understand how some of the issues raised by the general-blockchain token-economy research are addressed by Polkadot token-economy designs, while others are not. Descriptions and explanations will be made in terms centered around the content of specific pivotal papers or pivotal ideas. - Summary tables will highlight the key differentiating characteristics of different Polkadot blockchain network token-economies. + With Substrate Token-Economy networks in mind, I aim to provide a annotated bibliography of existing general-blockchain token-economy research. + Specifically, the central features and concerns across Polkadot Parachain Token-Economy networks will be identified. + Ultimately, the reader should learn something about those features of the token-economies of Polkadot Parachain networks and understand how some of the issues raised by the general-blockchain token-economy research are addressed by Polkadot Parachain token-economy designs, while others are not. Descriptions and explanations will be made in terms centered around the content of specific pivotal papers or pivotal ideas. + Summary tables will highlight the key differentiating characteristics of different Polkadot Parachain network token-economies. - Motivation: - A project we are developing envisions the use of Substrate relay and Parachains in such a manner that our (imagined) token use is, apparently, novel. The state of play in token-economics appears to be a debate [around staking and inflation](https://forum.polkadot.network/t/should-parachains-have-staking-inflation/806). A search of docs.substrate.io for "tokenomics" and "token-economics" returns no results. We had expected a reference to, or high-level summary of, the token-economies of parachains elected to the Polkadot relay chain. Ideally, we hoped to find high level descriptions of some token-economy features that are enabled by the distinct features of Substrate and its pallets, possibly with links to case studies or other resources. This survey article will provide some of that information. Inclusion of any of this information in Substrate/Polkadot documentation is out of scope. + A project we are developing envisions the use of Substrate relay and Parachains in such a manner that our (imagined) token use is, apparently, novel. The state of play in token-economics appears to be a debate [around staking and inflation](https://forum.polkadot.network/t/should-parachains-have-staking-inflation/806). A search of docs.substrate.io for "tokenomics" and "token-economics" returns no results. We had expected a reference to, or high-level summary of, the token-economies of parachains elected to the Polkadot relay chain. Ideally, we hoped to find high level descriptions of some token-economy features that are enabled by the distinct features of Substrate and its pallets, possibly with links to case studies or other resources. This survey article will provide some of that information. ## Project Details -The literature review component of this exercise will be closest to a "Rapid Review", see Grant MJ, Booth A. A typology of reviews: an analysis of 14 review types and associated methodologies. Health Info Libr J. 2009 Jun; 26(2):91-108. doi: 10.1111/j.1471-1842.2009.00848.x. Review. PubMed PMID: 19490148. +### The problem + +A search of docs.substrate.io for "tokenomics" and "token-economics" returns no results. We had expected a reference to, or high-level summary of, the token-economies of parachains elected to the Polkadot relay chain. Ideally, we hoped to find high level descriptions of some token-economy features that are enabled by the distinct features of Substrate and its pallets, possibly with links to case studies or other resources. This survey article will provide some of that information. Inclusion of any of this information in Substrate/Polkadot documentation is out of scope. + +### Research questions/hypothesis + +This project provides a annotated bibliography to help think through various choices and their trade-offs, it does not offer the answer to any particular token-economy design question. It does so by reviewing the current state of play, as it is described in: a) published general-blockchain research, b) Polkadot whitepapers. + +### The Methodology + +The annotated bibliography component of this exercise will be closest to a "Scoping Review", see Grant MJ, Booth A. [A typology of reviews: an analysis of 14 review types and associated methodologies](https://doi.org/10.1111/j.1471-1842.2009.00848.x). Health Info Libr J. 2009 Jun; 26(2):91-108. Review. PubMed PMID: 19490148. -Each section of the report/working paper will be developed using some subset of the following iterative process (Tsafnat, G., Glasziou, P., Choong, M.K. et al. Systematic review automation technologies. Syst Rev 3, 74 (2014). ) +Extract from Table 1 of Grant, M.J. and Booth, A. (2009): + +| Description | Search | Appraisal | Synthesis | Analysis | +| ----------- | ------ | --------- | --------- | -------- | +| Preliminary assessment of potential size and scope of available research literature. Aims to identify nature and extent of research evidence (usually including ongoing research) | Completeness of searching determined by time/scope constraints. May include research in progress | No formal quality assessment | Typically tabular with some narrative commentary | Characterizes quantity and quality of literature, perhaps by study design and other key features. Attempts to specify a viable review | + +Each section of the report/working paper will be developed using some subset of the following iterative process (Tsafnat, G., Glasziou, P., Choong, M.K. et al. [Systematic review automation technologies](https://doi.org/10.1186/2046-4053-3-74), Syst Rev 3, 74 (2014)) - Review reporting guidelines, best practice handbooks, and training modules [preparation stage] - Formulate question and decide on review type [preparation stage] @@ -47,15 +63,19 @@ Each section of the report/working paper will be developed using some subset of - Synthesize data/information [synthesis stage] - Manuscript development [write-up stage] -### Mockups/designs of any UI components +### The data collection and analysis procedures + +#### Published articles -This project is research oriented and as such there are no UI components to test. +As requested, to eliminate bias (and constrain budget) in the collection of research papers, the initial source of the published research will be the top-10 articles provided by the State Library of New South Wales information search service in response to the following query, "Refereed articles on block-chain token-economics using rational expectations equilibrium (a.k.a. no-arbitrage) arguments/analysis, ranked by journal impact factors" -### Technology stack +#### Polkadot Parachain whitepapers -LaTeX (incl. build scripts), PDF, HTML. +These are from projects that are Polkadot-Parachains as at 19 December 2022. -### PoC/MVP +### The expected results + +The objective is to arrive at a scoping review of current state of token-economy development, that forms the basis of a more forward looking "tokenomics", and a practical example aimed at Polkadot/Substrate developers without any formal training in economics. These are intended as a future projects. One of the elements will be summary tables, using attributes that arise naturally within a Rational Expectations Equilibrium framework, such as the following: @@ -76,13 +96,23 @@ One of the elements will be summary tables, using attributes that arise naturall - Borrow/Lend - Lender of Last Resort -Another component of this research is creating a token-categorization (questionnaire(s) or decision trees) that will aid/inform the specification of a token-economy. Nonetheless, there are already schemes that are useful even at this early stage. Such as these [Token Types (Burnie, Burnie and Henderson (2018))](https://doi.org/10.5195/ledger.2018.121): +Another component of this research is creating a token-categorization questionnaire or decision tree that will aid/inform the specification of a token-economy. Nonetheless, there are already schemes that are useful even at this early stage. Such as these [Token Types (Burnie, Burnie and Henderson (2018))](https://doi.org/10.5195/ledger.2018.121): - fuel-tokens: "underpin generic blockchain applications". I refine this definition as follows: The token yield is defined or modeled such that it provides holders with incentives to act for the purpose of ensuring the blockchain has the desired features/characteristics. - transaction-tokens: "act as a cash substitute" - voucher-tokens: "exchanged for a predefined asset". I include goods or services. -Effectively the objective is to arrive at a survey of current state of token-economy development, that forms the basis of a more forward looking "tokenomics", and a practical example aimed at Polkadot/Substrate developers without any formal training in economics. These are intended as a future projects. +The grants team, and any reader could reproduce the data analysis by applying the token-categorization questionaire to a parachain they are familiar with and compare their classification with the submitted result. + +### Relevant related work + +- [A typology of reviews: an analysis of 14 review types and associated methodologies](https://doi.org/10.1111/j.1471-1842.2009.00848.x) +- [Systematic review automation technologies](https://doi.org/10.1186/2046-4053-3-74) +- [Token Types (Burnie, Burnie and Henderson (2018))](https://doi.org/10.5195/ledger.2018.121) + +### Intended venue for results publication and the timeline for publication + +The report/working paper will be posted to [SSRN (e.g. FEN - Cryptocurrency Research eJournal)](https://papers.ssrn.com/sol3/JELJOUR_Results.cfm?form_name=journalBrowse&journal_id=3839004), [IDEAS](https://ideas.repec.org/), [Arxiv (q-fin.GN)](https://arxiv.org/list/q-fin.GN/recent). ### Out of scope @@ -96,6 +126,7 @@ Effectively the objective is to arrive at a survey of current state of token-eco - Substrate/Polkadot documentation. - Verifying the network token-economy has been implemented as specified in the network whitepaper. - Verifying the network whitepaper assumptions are a reasonable/plausible description of the network participants. +- Inclusion of any of this information in Substrate/Polkadot documentation. #### Crypto-Currencies @@ -186,48 +217,62 @@ Personal ### Overview -- Total Estimated Duration: 4.5 months -- Full-Time Equivalent (FTE): 0.8 FTE -- Total Costs: 42,000 USD +- Total Estimated Duration: 3 months +- Full-Time Equivalent (FTE): 0.2 FTE +- Total Costs: 10,000 USD ### Milestone 1 — Data gathering & Polkadot Networks -- **Estimated duration:** 6 weeks -- **FTE:** 1 -- **Costs:** 14,000 USD +- **Estimated duration:** 1 month +- **FTE:** 0.2 +- **Costs:** 3,000 USD + +Initial analysis of the Parachain tokenomics. +Initial flow-chart/decision-tree development that will help developers place their token in the following contexts: + +- Token Type +- Model Type +- Economy Type +- Sector Type +- Production Type +- Monetary Type | Number | Deliverable | Specification | | -----: | ----------- | ------------- | -| 0a. | License | Creative Commons Attribution 4.0 International License (article), Dual Apache 2 or MIT License (code) | -| 0b. | Data collection | Collect published, working and network papers. | -| 0c. | Article build guide | A guide to generating the article and related figures or tables. | -| 0d. | Docker | A Dockerfile(s) that can be used to generate the article PDF and HTML. | -| 0e. | Article | We will publish an **working paper** as indicated above. | -| 0e.1 | - Section: Methodology | The research methodology. | -| 0e.2 | - Section: Polkadot Economies | What are the central features and concerns across Polkadot Token-Economy networks? | +| **0a.** | Copyright and Licenses | Creative Commons Attribution 4.0 International License (article), Dual Apache 2 or MIT License (code) | +| **0b.** | Documentation/Tutorial | We will provide both **artifacts documentation** of the deliverables and a basic **tutorial** that explains how a user can (for example) execute the code included or can visualize data or use any artifacts included. | +| **0c.** | Methodology | Detailed explanation of how the results were achieved and how to reproduce/verify the results. | +| **0d.** | Infrastructure | We will provide the list of all infrastructure requirements (text editors with proper versions, software packages, data packages, etc) that can be used to verify the deliveries with this milestone. LaTeX for article production and Docker files for software execution. | +| **0e.** | Article | We create a **draft article** (with source code), in the English language.| +| **0e.1** | - Appendix: Methodology | As described in the methodology section above | +| **0e.2** | - Section: Polkadot Parachains | Initial Parachain summary | +| 1. | List of academic papers | Collect published, working and network papers, as described in the methodology section above | +| 2. | Data to be extracted from the papers | As described in the methodology section above | +| 3. | Analysis procedures | As described in the methodology section above | ### Milestone 2 — Outline Article -- **Estimated duration:** 6 weeks -- **FTE:** 0.8 -- **Costs:** 14,000 USD +- **Estimated duration:** 1 month +- **FTE:** 0.2 +- **Costs:** 3,000 USD | Number | Deliverable | Specification | | -----: | ----------- | ------------- | -| 0a. | License | Creative Commons Attribution 4.0 International License (article), Dual Apache 2 or MIT License (code) | -| 0b. | Documentation | We will provide both **PDF** and **HTML** versions of the working paper. | -| 0c. | Article build guide | A guide to generating the article and related figures or tables. | -| 0d. | Docker | A Dockerfile(s) that can be used to generate the article PDF and HTML. | +| **0a.** | Copyright and Licenses | Creative Commons Attribution 4.0 International License (article), Dual Apache 2 or MIT License (code) | +| **0b.** | Documentation/Tutorial | We will update both **artifacts documentation** of the deliverables and a basic **tutorial** that explains how a user can (for example) execute the code included or can visualize data or use any artifacts included. | +| **0c.** | Methodology | Update the detailed explanation of how the results were achieved and how to reproduce/verify the results. | +| **0d.** | Infrastructure | We will update the list of all infrastructure requirements (text editors with proper versions, software packages, data packages, etc) that can be used to verify the deliveries with this milestone. LaTeX for article production and Docker files for software execution. | +| **0e.** | Article | We will send a **draft article** (with source code), in the English language.| to test all the functionality delivered with this milestone. | -| 0e. | Article | We will publish an **working paper** as indicated above. | -| 0e.4 | - Section: Reduced Form Models | What are the reduced form approaches to creating a Token-Economy? | -| 0e.3 | - Section: Structural Models | What are the structural approaches to creating a Token-Economy? | +| **0e.1** | Article | We will publish an **working paper** as indicated above. | +| **0e.2** | - Section: Published models | Initial annotated bibliography | +| **0e.3** | - Section: Polkadot Parachain Economies | Parachain summary updated with references to published models | ### Milestone 3 — Finalize Article -- **Estimated Duration:** 6 weeks -- **FTE:** 0.8 -- **Costs:** 14,000 USD +- **Estimated Duration:** 1 month +- **FTE:** 0.2 +- **Costs:** 4,000 USD Finalize the flow-chart/decision-tree that will help developers place their token in the following contexts: @@ -238,34 +283,32 @@ Finalize the flow-chart/decision-tree that will help developers place their toke - Production Type - Monetary Type -Finalize the literature survey. -Synthesize the descriptions of the Polkadot Parachain networks in the context of the existing token-economics literature. +Finalize the annotated bibliography. Promote the working paper, incorporate feedback. The report/working paper will be posted to [SSRN (e.g. FEN - Cryptocurrency Research eJournal)](https://papers.ssrn.com/sol3/JELJOUR_Results.cfm?form_name=journalBrowse&journal_id=3839004), [IDEAS](https://ideas.repec.org/), [Arxiv (q-fin.GN)](https://arxiv.org/list/q-fin.GN/recent). | Number | Deliverable | Specification | | -----: | ----------- | ------------- | -| 0a. | License | Creative Commons Attribution 4.0 International License (article), Dual Apache 2 or MIT License (code) | -| 0b. | Documentation | We will provide both **PDF** and **HTML** versions of the working paper. | -| 0c. | Article build guide | A guide to generating the article and related figures or tables. | -| 0d. | Docker | A Dockerfile(s) that can be used to generate the article PDF and HTML. | -| 0e. | Article | We will publish an **working paper** as indicated above. | -| 0e.1 | - Section: Introduction | Place the topic in perspective and motivate non-specialist readers. Text and tables where relevant/appropriate. | -| 0e.2 | - Section: Polkadot Economies | What are the central features and concerns across Polkadot Token-Economy networks? Text and tables where relevant/appropriate. | -| 0e.3 | - Section: Structural Models | What are the structural approaches to creating a Token-Economy? Text and tables where relevant/appropriate. | -| 0e.4 | - Section: Reduced Form Models | What are the reduced form approaches to creating a Token-Economy? Text and tables where relevant/appropriate. | -| 0e.5 | - Section: Future Directions | What are unexplored approaches to creating a Token-Economy? Text and tables where relevant/appropriate. | -| 0e.6 | - Section: Summary | Where are we and where to next? | -| 0e.7 | - Appendix: Methodology | The research methodology. Text and tables where relevant/appropriate. | +| **0a.** | Copyright and Licenses | Creative Commons Attribution 4.0 International License (article), Dual Apache 2 or MIT License (code) | +| **0b.** | Documentation/Tutorial | We will update both **artifacts documentation** of the deliverables and a basic **tutorial** that explains how a user can (for example) execute the code included or can visualize data or use any artifacts included. | +| **0c.** | Methodology | Update the detailed explanation of how the results were achieved and how to reproduce/verify the results. | +| **0d.** | Infrastructure | We will update the list of all infrastructure requirements (text editors with proper versions, software packages, data packages, etc) that can be used to verify the deliveries with this milestone. LaTeX for article production and Docker files for software execution. | +| **0e** | Article | We will update a **draft article** (with source code), in the English language.| +to test all the functionality delivered with this milestone. | +| **0e.1** | - Section: Introduction | Place the topic in perspective and motivate non-specialist readers. Text and tables where relevant/appropriate. | +| **0e.2** | - Section: Published models | Update annotated bibliography | +| **0e.3** | - Section: Polkadot Parachains | Parachain summary updated with references to published models | +| **0e.4** | - Appendix: Methodology | The research methodology. Text and tables where relevant/appropriate. | +| **0e.5** | - Section: Summary | Where are we and where to next? | +| 1. | Feedback | Collect published, working and network papers, as described in the methodology section above | +| 2. | Publish | The working paper will be posted to [SSRN (e.g. FEN - Cryptocurrency Research eJournal)](https://papers.ssrn.com/sol3/JELJOUR_Results.cfm?form_name=journalBrowse&journal_id=3839004), [IDEAS](https://ideas.repec.org/), [Arxiv (q-fin.GN)](https://arxiv.org/list/q-fin.GN/recent) | ## Future Plans Please include here - how you intend to use, enhance, promote and support your project in the short term, and - - The research article may be accepted for publication, but this is a fraught/political process and should not be considered a deliverable. - - The results will be sent to blockchain websites, bloggers and posted to the Polkadot forum. - - The working paper will be posted to [SSRN (e.g. FEN - Cryptocurrency Research eJournal)](https://papers.ssrn.com/sol3/JELJOUR_Results.cfm?form_name=journalBrowse&journal_id=3839004), [IDEAS](https://ideas.repec.org/), [Arxiv (q-fin.GN)](https://arxiv.org/list/q-fin.GN/recent) + - The working paper will be posted to [SSRN (e.g. FEN - Cryptocurrency Research eJournal)](https://papers.ssrn.com/sol3/JELJOUR_Results.cfm?form_name=journalBrowse&journal_id=3839004), [IDEAS](https://ideas.repec.org/), [Arxiv (q-fin.GN)](https://arxiv.org/list/q-fin.GN/recent) and the Polkadot forum. - the team's long-term plans and intentions in relation to it. - Engage in a more forward-looking/positive analysis of how to design a token-economy, addressing any gaps identified in this review. - Create a practical "how-to design a Polkadot/Substrate token-economy" series aimed at developers without any relevant economics/finance background. From fd1275fb2d7d95d3390d9ad34a41bf5c35366a9b Mon Sep 17 00:00:00 2001 From: Mark Van de Vyver Date: Mon, 30 Jan 2023 20:12:53 +1100 Subject: [PATCH 5/9] Align description detail across sections Signed-off-by: Mark Van de Vyver --- applications/tokenomics-survey-2022.md | 24 +++++++++++------------- 1 file changed, 11 insertions(+), 13 deletions(-) diff --git a/applications/tokenomics-survey-2022.md b/applications/tokenomics-survey-2022.md index fa58418379b..f1f0e771945 100644 --- a/applications/tokenomics-survey-2022.md +++ b/applications/tokenomics-survey-2022.md @@ -19,20 +19,20 @@ The report/working paper will be posted to [SSRN (e.g. FEN - Cryptocurrency Rese - Substrate integration: With Substrate Token-Economy networks in mind, I aim to provide a annotated bibliography of existing general-blockchain token-economy research. Specifically, the central features and concerns across Polkadot Parachain Token-Economy networks will be identified. - Ultimately, the reader should learn something about those features of the token-economies of Polkadot Parachain networks and understand how some of the issues raised by the general-blockchain token-economy research are addressed by Polkadot Parachain token-economy designs, while others are not. Descriptions and explanations will be made in terms centered around the content of specific pivotal papers or pivotal ideas. + Ultimately, the reader should learn something about those features of the token-economies of Polkadot Parachain networks and understand how some of the issues raised by the general-blockchain token-economy research are addressed by Polkadot Parachain token-economy designs, while others are not. Summary tables will highlight the key differentiating characteristics of different Polkadot Parachain network token-economies. - Motivation: - A project we are developing envisions the use of Substrate relay and Parachains in such a manner that our (imagined) token use is, apparently, novel. The state of play in token-economics appears to be a debate [around staking and inflation](https://forum.polkadot.network/t/should-parachains-have-staking-inflation/806). A search of docs.substrate.io for "tokenomics" and "token-economics" returns no results. We had expected a reference to, or high-level summary of, the token-economies of parachains elected to the Polkadot relay chain. Ideally, we hoped to find high level descriptions of some token-economy features that are enabled by the distinct features of Substrate and its pallets, possibly with links to case studies or other resources. This survey article will provide some of that information. + A project we are developing envisions the use of Substrate relay and Parachains in such a manner that our (imagined) token use is, apparently, novel. The state of play in Polkadot Parachain token-economics appears to be a debate [around staking and inflation](https://forum.polkadot.network/t/should-parachains-have-staking-inflation/806). A search of docs.substrate.io for "tokenomics" and "token-economics" returns no results. We had expected a reference to, or high-level summary of, the token-economies of parachains elected to the Polkadot relay chain. Ideally, we hoped to find high level descriptions of some token-economy features that are enabled by the distinct features of Substrate and its pallets, possibly with links to case studies or other resources. This annotated bibliography will provide some of that information. ## Project Details ### The problem -A search of docs.substrate.io for "tokenomics" and "token-economics" returns no results. We had expected a reference to, or high-level summary of, the token-economies of parachains elected to the Polkadot relay chain. Ideally, we hoped to find high level descriptions of some token-economy features that are enabled by the distinct features of Substrate and its pallets, possibly with links to case studies or other resources. This survey article will provide some of that information. Inclusion of any of this information in Substrate/Polkadot documentation is out of scope. +A search of docs.substrate.io for "tokenomics" and "token-economics" returns no results. We had expected a reference to, or high-level summary of, the token-economies of parachains elected to the Polkadot relay chain. Ideally, we hoped to find high level descriptions of some token-economy features that are enabled by the distinct features of Substrate and its pallets, possibly with links to case studies or other resources. This annotated bibliography will provide some of that information. Inclusion of any of this information in Substrate/Polkadot documentation is out of scope. ### Research questions/hypothesis -This project provides a annotated bibliography to help think through various choices and their trade-offs, it does not offer the answer to any particular token-economy design question. It does so by reviewing the current state of play, as it is described in: a) published general-blockchain research, b) Polkadot whitepapers. +This project provides a annotated bibliography to identify relevant research, it does not offer the answer to any particular token-economy design question. It does so using: a) published general-blockchain research, b) Polkadot whitepapers. ### The Methodology @@ -67,7 +67,7 @@ Each section of the report/working paper will be developed using some subset of #### Published articles -As requested, to eliminate bias (and constrain budget) in the collection of research papers, the initial source of the published research will be the top-10 articles provided by the State Library of New South Wales information search service in response to the following query, "Refereed articles on block-chain token-economics using rational expectations equilibrium (a.k.a. no-arbitrage) arguments/analysis, ranked by journal impact factors" +As requested, to eliminate bias (and constrain budget) in the collection of research papers, the initial source of the published research will be the top-10 articles provided by an independent research service, using the commercial research databases available from the State Library of New South Wales in response to the following query, "Refereed articles on block-chain token-economics using rational expectations equilibrium (a.k.a. no-arbitrage) arguments/analysis, ranked by journal impact factors" #### Polkadot Parachain whitepapers @@ -130,7 +130,7 @@ The report/working paper will be posted to [SSRN (e.g. FEN - Cryptocurrency Rese #### Crypto-Currencies -Their prevalence means the decision to exclude cryptocurrencies warrants some explanation. +The prevalence of crypto-currencies means the decision to exclude them warrants some explanation. Equilibria are generally explicitly constructed (which proves existence) using conjectured properties of the dividends (or an equivalent) from the economic activity. Specifically, a price is the present-value (i.e. discounted for time and non-diversifiable risk), of all future dividends. Since the dividends of fiat currencies are zero this approach does not work. While there are workarounds, they, being particular, are not of interest in the more general setting we wish to bring to light. ### Ecosystem Fit @@ -140,8 +140,8 @@ Equilibria are generally explicitly constructed (which proves existence) using c - Who is your target audience? - Polkadot/Substrate Relay and Parachain developers. Industry analysts/advisors (media and investors). - What need(s) does your project meet? - Developers and analysts need to understand the choices/trade-offs available when developing their token-economy. - The set of modeling choices we canvas is defined by the exiting literature, both theoretical and applied (network whitepapers). + Developers and analysts need to understand the relevant literature available when developing their token-economy. + The literature we canvas both theoretical (refereed articles) and applied (network whitepapers). - Are there any other projects similar to yours in the Substrate / Polkadot / Kusama ecosystem? No - If not, are there similar projects in related ecosystems? @@ -202,10 +202,9 @@ Personal - [Designing UpChain: a framework for securing Substrate runtime upgrades and Substrate network upgrades](https://github.com/w3f/Grants-Program/pull/1309) - As requested, I have adjusted the source of the research to eliminate myself as the source of bias in the collection of research papers. - academic publications relevant to the problem: - One of the products from this research will be such a listing under three categories: + One of the products from this research will be such a listing under these categories: 1. Published articles: As requested, to eliminate bias (and constrain budget) in the collection of research papers, the initial source of the published research will be the top-10 articles provided by the State Library of New South Wales information search service in response to the following query, "Refereed articles on block-chain token-economics using rational expectations equilibrium (a.k.a. no-arbitrage) arguments/analysis, ranked by journal impact factors" - 2. Working papers: Those papers that explicitly address improving/extending an article in the top-10 of the articles in 1) above. - 3. Polkadot Parachain whitepapers: These are from projects that are Polkadot-Parachains as at 19 December 2022. + 2. Polkadot Parachain whitepapers: These are from projects that are Polkadot-Parachains as at 19 December 2022. - links to your research diary, blog posts, articles, forum discussions or open GitHub issues: - [Tokenomics: Grant models](https://forum.polkadot.network/t/tokenomics-grant-models/1266) - references to conversations you might have had related to this project with anyone from the Web3 Foundation @@ -310,8 +309,7 @@ Please include here - how you intend to use, enhance, promote and support your project in the short term, and - The working paper will be posted to [SSRN (e.g. FEN - Cryptocurrency Research eJournal)](https://papers.ssrn.com/sol3/JELJOUR_Results.cfm?form_name=journalBrowse&journal_id=3839004), [IDEAS](https://ideas.repec.org/), [Arxiv (q-fin.GN)](https://arxiv.org/list/q-fin.GN/recent) and the Polkadot forum. - the team's long-term plans and intentions in relation to it. - - Engage in a more forward-looking/positive analysis of how to design a token-economy, addressing any gaps identified in this review. - - Create a practical "how-to design a Polkadot/Substrate token-economy" series aimed at developers without any relevant economics/finance background. + - Engage in a more forward-looking/positive analysis of how to design an aspect of the Substrate/Polkadot token-economy that addresses a current need. - Create RFP's addressing pallet functionality gaps that are identified in the course of the above. ## Additional Information :heavy_plus_sign: From 986ebff88ec57cae5a64160625d010c81f5e6c50 Mon Sep 17 00:00:00 2001 From: Mark Van de Vyver Date: Tue, 31 Jan 2023 09:01:51 +1100 Subject: [PATCH 6/9] Changes requested Signed-off-by: Mark Van de Vyver --- applications/tokenomics-survey-2022.md | 10 +++++----- 1 file changed, 5 insertions(+), 5 deletions(-) diff --git a/applications/tokenomics-survey-2022.md b/applications/tokenomics-survey-2022.md index f1f0e771945..5ff21ec3835 100644 --- a/applications/tokenomics-survey-2022.md +++ b/applications/tokenomics-survey-2022.md @@ -15,7 +15,7 @@ The report/working paper will be posted to [SSRN (e.g. FEN - Cryptocurrency Rese - Description: The decision making of Substrate developers (and other stakeholders) is assisted if a hypothetical/proposed token-economy can be described by reference, or analogy, to a known working/successful token-economy. Absent an existing implementation, developers are left to invent a token-economy, try to adapt an existing non-blockchain experience to a blockchain, or try to adapt non-blockchain ideas to a blockchain. -- This project provides a annotated bibliography to help think through various choices and their trade-offs, it does not offer the answer to any particular token-economy design question. It does so by reviewing the current state of play, as it is described in: a) published general-blockchain research, b) Polkadot whitepapers. +- This project provides a annotated bibliography to help think through various choices and their trade-offs. It does so by reviewing the current state of play, as it is described in: a) published general-blockchain research, b) Polkadot whitepapers. It does not offer the answer to any particular token-economy design question. - Substrate integration: With Substrate Token-Economy networks in mind, I aim to provide a annotated bibliography of existing general-blockchain token-economy research. Specifically, the central features and concerns across Polkadot Parachain Token-Economy networks will be identified. @@ -242,10 +242,10 @@ Initial flow-chart/decision-tree development that will help developers place the | **0b.** | Documentation/Tutorial | We will provide both **artifacts documentation** of the deliverables and a basic **tutorial** that explains how a user can (for example) execute the code included or can visualize data or use any artifacts included. | | **0c.** | Methodology | Detailed explanation of how the results were achieved and how to reproduce/verify the results. | | **0d.** | Infrastructure | We will provide the list of all infrastructure requirements (text editors with proper versions, software packages, data packages, etc) that can be used to verify the deliveries with this milestone. LaTeX for article production and Docker files for software execution. | -| **0e.** | Article | We create a **draft article** (with source code), in the English language.| +| **0e.** | Article | We create a **draft article** (with source code), in the English language. There will be an acknowledgement "This work was supported by a research grant from the Web3 Foundation." | | **0e.1** | - Appendix: Methodology | As described in the methodology section above | | **0e.2** | - Section: Polkadot Parachains | Initial Parachain summary | -| 1. | List of academic papers | Collect published, working and network papers, as described in the methodology section above | +| 1. | List of academic papers | Collect published and network papers, as described in the methodology section above | | 2. | Data to be extracted from the papers | As described in the methodology section above | | 3. | Analysis procedures | As described in the methodology section above | @@ -262,7 +262,7 @@ Initial flow-chart/decision-tree development that will help developers place the | **0c.** | Methodology | Update the detailed explanation of how the results were achieved and how to reproduce/verify the results. | | **0d.** | Infrastructure | We will update the list of all infrastructure requirements (text editors with proper versions, software packages, data packages, etc) that can be used to verify the deliveries with this milestone. LaTeX for article production and Docker files for software execution. | | **0e.** | Article | We will send a **draft article** (with source code), in the English language.| -to test all the functionality delivered with this milestone. | +to test all the functionality delivered with this milestone. There will be an acknowledgement "This work was supported by a research grant from the Web3 Foundation." | | **0e.1** | Article | We will publish an **working paper** as indicated above. | | **0e.2** | - Section: Published models | Initial annotated bibliography | | **0e.3** | - Section: Polkadot Parachain Economies | Parachain summary updated with references to published models | @@ -293,7 +293,7 @@ The report/working paper will be posted to [SSRN (e.g. FEN - Cryptocurrency Rese | **0c.** | Methodology | Update the detailed explanation of how the results were achieved and how to reproduce/verify the results. | | **0d.** | Infrastructure | We will update the list of all infrastructure requirements (text editors with proper versions, software packages, data packages, etc) that can be used to verify the deliveries with this milestone. LaTeX for article production and Docker files for software execution. | | **0e** | Article | We will update a **draft article** (with source code), in the English language.| -to test all the functionality delivered with this milestone. | +to test all the functionality delivered with this milestone. There will be an acknowledgement "This work was supported by a research grant from the Web3 Foundation." | | **0e.1** | - Section: Introduction | Place the topic in perspective and motivate non-specialist readers. Text and tables where relevant/appropriate. | | **0e.2** | - Section: Published models | Update annotated bibliography | | **0e.3** | - Section: Polkadot Parachains | Parachain summary updated with references to published models | From 20e45ef649bad950db97057c07c05dd61aba6d23 Mon Sep 17 00:00:00 2001 From: Mark Van de Vyver Date: Wed, 1 Feb 2023 07:51:26 +1100 Subject: [PATCH 7/9] Changes requested Signed-off-by: Mark Van de Vyver --- applications/tokenomics-survey-2022.md | 8 +++----- 1 file changed, 3 insertions(+), 5 deletions(-) diff --git a/applications/tokenomics-survey-2022.md b/applications/tokenomics-survey-2022.md index 5ff21ec3835..86f906fc188 100644 --- a/applications/tokenomics-survey-2022.md +++ b/applications/tokenomics-survey-2022.md @@ -242,7 +242,7 @@ Initial flow-chart/decision-tree development that will help developers place the | **0b.** | Documentation/Tutorial | We will provide both **artifacts documentation** of the deliverables and a basic **tutorial** that explains how a user can (for example) execute the code included or can visualize data or use any artifacts included. | | **0c.** | Methodology | Detailed explanation of how the results were achieved and how to reproduce/verify the results. | | **0d.** | Infrastructure | We will provide the list of all infrastructure requirements (text editors with proper versions, software packages, data packages, etc) that can be used to verify the deliveries with this milestone. LaTeX for article production and Docker files for software execution. | -| **0e.** | Article | We create a **draft article** (with source code), in the English language. There will be an acknowledgement "This work was supported by a research grant from the Web3 Foundation." | +| **0e.** | Article | We create a **draft article** (with source code), in the English language. There will be an acknowledgement "This work was supported by a research grant from the Web3 Foundation. The analysis and opinions expressed are the authors and do not reflect the opinions of the Web3 Foundation." | | **0e.1** | - Appendix: Methodology | As described in the methodology section above | | **0e.2** | - Section: Polkadot Parachains | Initial Parachain summary | | 1. | List of academic papers | Collect published and network papers, as described in the methodology section above | @@ -261,8 +261,7 @@ Initial flow-chart/decision-tree development that will help developers place the | **0b.** | Documentation/Tutorial | We will update both **artifacts documentation** of the deliverables and a basic **tutorial** that explains how a user can (for example) execute the code included or can visualize data or use any artifacts included. | | **0c.** | Methodology | Update the detailed explanation of how the results were achieved and how to reproduce/verify the results. | | **0d.** | Infrastructure | We will update the list of all infrastructure requirements (text editors with proper versions, software packages, data packages, etc) that can be used to verify the deliveries with this milestone. LaTeX for article production and Docker files for software execution. | -| **0e.** | Article | We will send a **draft article** (with source code), in the English language.| -to test all the functionality delivered with this milestone. There will be an acknowledgement "This work was supported by a research grant from the Web3 Foundation." | +| **0e.** | Article | We will send a **draft article** (with source code), in the English language. There will be an acknowledgement "This work was supported by a research grant from the Web3 Foundation. The analysis and opinions expressed are the authors and do not reflect the opinions of the Web3 Foundation."| | **0e.1** | Article | We will publish an **working paper** as indicated above. | | **0e.2** | - Section: Published models | Initial annotated bibliography | | **0e.3** | - Section: Polkadot Parachain Economies | Parachain summary updated with references to published models | @@ -292,8 +291,7 @@ The report/working paper will be posted to [SSRN (e.g. FEN - Cryptocurrency Rese | **0b.** | Documentation/Tutorial | We will update both **artifacts documentation** of the deliverables and a basic **tutorial** that explains how a user can (for example) execute the code included or can visualize data or use any artifacts included. | | **0c.** | Methodology | Update the detailed explanation of how the results were achieved and how to reproduce/verify the results. | | **0d.** | Infrastructure | We will update the list of all infrastructure requirements (text editors with proper versions, software packages, data packages, etc) that can be used to verify the deliveries with this milestone. LaTeX for article production and Docker files for software execution. | -| **0e** | Article | We will update a **draft article** (with source code), in the English language.| -to test all the functionality delivered with this milestone. There will be an acknowledgement "This work was supported by a research grant from the Web3 Foundation." | +| **0e** | Article | We will update a **draft article** (with source code), in the English language. There will be an acknowledgement "This work was supported by a research grant from the Web3 Foundation. The analysis and opinions expressed are the authors and do not reflect the opinions of the Web3 Foundation."| | **0e.1** | - Section: Introduction | Place the topic in perspective and motivate non-specialist readers. Text and tables where relevant/appropriate. | | **0e.2** | - Section: Published models | Update annotated bibliography | | **0e.3** | - Section: Polkadot Parachains | Parachain summary updated with references to published models | From 1cda222e917599178276f6be5b019ca98b1923db Mon Sep 17 00:00:00 2001 From: Mark Van de Vyver Date: Wed, 1 Feb 2023 08:11:49 +1100 Subject: [PATCH 8/9] Changes requested Signed-off-by: Mark Van de Vyver --- applications/tokenomics-survey-2022.md | 4 ++-- 1 file changed, 2 insertions(+), 2 deletions(-) diff --git a/applications/tokenomics-survey-2022.md b/applications/tokenomics-survey-2022.md index 86f906fc188..92b13063215 100644 --- a/applications/tokenomics-survey-2022.md +++ b/applications/tokenomics-survey-2022.md @@ -67,7 +67,7 @@ Each section of the report/working paper will be developed using some subset of #### Published articles -As requested, to eliminate bias (and constrain budget) in the collection of research papers, the initial source of the published research will be the top-10 articles provided by an independent research service, using the commercial research databases available from the State Library of New South Wales in response to the following query, "Refereed articles on block-chain token-economics using rational expectations equilibrium (a.k.a. no-arbitrage) arguments/analysis, ranked by journal impact factors" +The initial source of the published research will be the top-10 articles selected by the grantee, using the commercial research databases available from the State Library of New South Wales by operationalizing the following inquiry, "Refereed articles on block-chain token-economics using rational expectations equilibrium (a.k.a. no-arbitrage) arguments/analysis, ranked by journal impact factors". This initial source may be adjusted at the grantees discretion based on his expertise. The selection process will be fully descrided and documented. #### Polkadot Parachain whitepapers @@ -75,7 +75,7 @@ These are from projects that are Polkadot-Parachains as at 19 December 2022. ### The expected results -The objective is to arrive at a scoping review of current state of token-economy development, that forms the basis of a more forward looking "tokenomics", and a practical example aimed at Polkadot/Substrate developers without any formal training in economics. These are intended as a future projects. +The objective is to arrive at a scoping review of current state of token-economy development. One of the elements will be summary tables, using attributes that arise naturally within a Rational Expectations Equilibrium framework, such as the following: From ac9c37dd6cda2a28c33d1e396364507714e283d3 Mon Sep 17 00:00:00 2001 From: Mark Van de Vyver Date: Wed, 1 Feb 2023 08:13:25 +1100 Subject: [PATCH 9/9] Changes requested Signed-off-by: Mark Van de Vyver --- applications/tokenomics-survey-2022.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/applications/tokenomics-survey-2022.md b/applications/tokenomics-survey-2022.md index 92b13063215..1e5eccd3fe8 100644 --- a/applications/tokenomics-survey-2022.md +++ b/applications/tokenomics-survey-2022.md @@ -67,7 +67,7 @@ Each section of the report/working paper will be developed using some subset of #### Published articles -The initial source of the published research will be the top-10 articles selected by the grantee, using the commercial research databases available from the State Library of New South Wales by operationalizing the following inquiry, "Refereed articles on block-chain token-economics using rational expectations equilibrium (a.k.a. no-arbitrage) arguments/analysis, ranked by journal impact factors". This initial source may be adjusted at the grantees discretion based on his expertise. The selection process will be fully descrided and documented. +The initial source of the published research will be the top-10 articles selected by the grantee, using the commercial research databases available from the State Library of New South Wales by operationalizing the following inquiry, "Refereed articles on block-chain token-economics using rational expectations equilibrium (a.k.a. no-arbitrage) arguments/analysis, ranked by journal impact factors". This initial source may be adjusted at the grantees discretion based on his expertise. The selection process will be fully described and documented. #### Polkadot Parachain whitepapers