International Joint Conference On Theoretical Computer Science – Frontier of Algorithmic Wisdom

August 15-19, 2022, City University of Hong Kong, Hong Kong

 

Invited Speakers

Track B


Token Design and Economic Incentives

Ye Li

University of Washington

Abstract:
We develop a dynamic model of platform economy where tokens serve as a means of payments among platform users and are issued to finance investment in platform productivity. Tokens are optimally issued to reward platform owners when the productivity-normalized token supply is low and burnt to boost the franchise value when the productivity-normalized normalized supply is high. Although token price is determined in a liquid market, the platform's financial constraint generates an endogenous token issuance cost, causing underinvestment through the conflict of interest between insiders (platform owners) and outsiders (users). Blockchain technology mitigates underinvestment by addressing the platform's time-inconsistency problem.

Bio:
Ye Li - PhD in Finance and Economics from Columbia University and Assistant Professor of Finance (William W. Alberts Endowed Professor in Finance) at University of Washington. Ye Li is also an advisor to the Bank of Canada in the area of digital currency, a Lamfalussy Research Fellow at the European Central Bank, an elected member of the Finance Theory Group, an invited member of the Macron Finance Society, and a research affiliate of CESifo in Germany. Ye Li has published papers on the top economics and finance journals, such as the American Economic Review, Review of Financial Studies, and Journal of Financial Economics, in the area of monetary economics, blockchain and cryptocurrency, and token-financed platform development. He collaborated with researchers from the leading academic institutions and central banks around the world, such as the Federal Reserve System of the U.S. and Bank of England, and his research has been presented at leading academic conferences in Asia, Europe, and the U.S.