Fundamental Pricing of Utility Tokens
Département Economie et Sciences de la Décision
Intervenant : Julien PRAT (CREST)
HEC Campus - Bâtiment T - Salle T004
We explain how to evaluate the fundamental price of utility tokens. Our model endogenizes the velocity of circulation of tokens and yields a pricing formula that is fully microfounded. According to our approach, tokens are valuable because they have to be immediately accessible when the platform service is needed, a requirement that is reminiscent of the cash-in-advance constraint in the theory of money.