Reflections Of The Economics Of Blockchain Tokens

AGUP (Arcade Game Utilitarian Paradigm)

Mi'kail Eli'yah
19 min readMay 16, 2024

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I see the blockchain with an `Arcade Game Utilitarian Paradigm` where `we sell a coin, they get a key`. The key is the factor to turn on it as a gas or engine to a service. In the analogy of arcade, it is the game session.

With my re-examination of the economics learned, I had reflected how I may design an economy of reward and penalty for various “coins” in this “arcade economy” that is functional and that can move humans and humanity in the right direction. I tried to avoid the common address of `tokenomics` as I could not see how some proponents refer back to the fundamentals of economics. True enough that we do need a more efficient scheme of things, however, if we do not understand the basis of socio-economics, we may be re-inventing a bad wheel.

This drafted a framework for designing such an economy with a focus on incentivizing desirable behaviors and disincentivizing undesirable ones. A few principles are derived to arrive at such a framework.

Premises
🟡 Utility-Based `Coin` Distribution
🟡 Reward
🟡 Penalty
🟡 Serving The Utilitarian Basis
🔸 Trusted Transparency and Audibility
🔸 Dynamic Adjustment of Incentives
🔸 Sociology of Things
From Premises To Paradigm
🔵 Arcade

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