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Cryptecon advises Envoy

cryptecon advises Enovy on token economics.

Envoy has invented a new way of networking which allows individual and corporate users to manage their contact data from different sources (such as LinkedIn, Xing, Outlook, Smartphone) in one place, based on an innovative use of blockchain technology.

This new concept is built on a paradox – sharing contact data while keeping it private.  Envoy empowers users for the first time to monetize (gain monetary rewards) their networks by commoditizing (converting the data into an asset of value) and democratizing (sharing valuable relationships) their contact data.

Envoy operates in a private and secure environment where the user retains absolute control over what data they share, with whom they share it and for how long.

Cryptecon analyses the interplay between different token supply mechanisms, inflation and real demand for Envoy’s services.

For more information visit: https://www.envoyworld.com

Cryptecon advises Spot

Spot aims to create a new decentralized economy for online news. Based on blockchain technology, the system is designed to align the incentives of writers, publishers, and readers by rewarding the distribution and promotion of valuable news. With the collapse of advertising revenues and the rise of fake news and clickbait, Spot hopes to become a valuable alternative for the distribution of quality content.

cryptecon advises Spot in designing its system using insights from platform and network economics.

Find out more on Spot’s website: https://spotprotocol.co

Cryptecon advises Gen.ki

We are proud to announce that the Center for Cryptoeconomics (cryptecon) collaborates with Genki to improve their platform and token economy.

Genki offers a new hardware device (the Genki Octagon), which provides access to a wide range of applications. Cryptecon was commissioned to test the intended mechanism regulating Genki’s token supply.

For more information about Genki’s product visit their website.

Cryptecon helps in the design of Havvens’ stablecoin

The Havven Foundation successfully launched a stablecoin (i.e. a price-stable cryptocurrency) on June 11, 2018. During the preceding ICO, the organization raised USD 30 million in funding.

Cryptecon supported the Havven Foundation designing the token system with game theoretical models and numerical simulations.

The concept is based on a dual-token system. Demand fluctuations for the stablecoin, named Nomin, are absorbed by a collateral coin, named Havven. Our analysis shows that under reasonable assumptions and parameters, Havven holders’ incentives are aligned with the system’s goal of exchange rate stability. Thus, Havven holders sell or buy Nomins depending on the prevailing valuation pressure in order to keep its value close to USD 1.

“After months of hard work, both Havven and cryptecon were confident that the supply side incentives we had designed would enable the system to stabilise the nomin price. At this point, cryptecon began an independent analysis of Havven. They developed a game theoretic model to determine whether actors in the system would follow the incentives. They also conducted simulations to understand how resilient the system would be to exogenous shocks.” Havven

A summary of the token design and the contributions of cryptecon can be found on the Havven block. The entire cryptecon report is available here.

Price stability test for verasity.io

Cryptecon analyzed the price stability of a next-generation video platform which is currently under development by the Verasity Foundation.

The platform enables viewers, content producers and advertisers to exchange services based on a specialized cryptocurrency. This allows different players to interact directly without expensive middlemen earning large shares of content producers’ revenues. By regulating money supply, the Verasity Foundation intends to stabilize price levels of the platform.

We conducted simulations to test whether the proposed minting mechanism can result in a stable economy. Based on the information provided by verasity.io and assumptions about the behavior of speculators, cryptecon modelled the price level development. We come to the conclusion that the planned mechanism for money supply is capable of creating reasonable price stability.

Economic report available at: https://verasity.io/documents/verasity_economics_eng.pdf

Game-theoretic analysis of Bitcoin mining

New paper on “The Bitcoin Mining Game: On the Optimality of Honesty in Proof-of-work Consensus Mechanism” by Juan Beccuti and Christian Jaag:

We consider a game in which Bitcoin miners compete for a reward of each solved puzzle in a sequence of them. We model it as a sequential game with imperfect information, in which miners have to choose whether or not to report their success. We show that the game has a multiplicity of equilibria and we analyze the parameter constellations for each of them. In particular, the minimum requirement to find it optimal not to report is decreasing with the number of miners who are not reporting, and increasing the heterogeneity among players reduces the likelihood that they choose not to report.

Download paper