Token Incentives in a Volatile Crypto Market: The Effects of Token Price Volatility on User Contribution

IF 5.9 2区 管理学 Q1 COMPUTER SCIENCE, INFORMATION SYSTEMS Journal of Management Information Systems Pub Date : 2023-04-03 DOI:10.1080/07421222.2023.2196772
K. Chen, Yifan Fan, S. Liao
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Abstract

ABSTRACT Crypto tokens, issued and managed via smart contracts, function as rewards in blockchain systems to encourage user participation. Distinct from monetary incentives, token incentives are uncertain in reward magnitude due to the large swings in token prices on crypto markets. By focusing on token price volatility, this study investigates how the reward uncertainty affects user contribution in a tokenized digital platform. Our empirical setting is Steemit, a platform where bloggers write posts and share token rewards based on their posts’ popularity. We find that while high token price volatility induces a large volume of blog posts, it diminishes post quality. The dichotomous effects are explained via two mechanisms: users’ direct reactions to reward uncertainties and their indirect reactions, mediated by altered token preference amid volatility shocks. Deeply exploring this dynamic process, our results reveal that token price volatility facilitates a platform’s network short-term effect but impairs long-term user creativity. Our empirical findings thus extend the literature on blockchain economics and cryptocurrencies and have practical implications for the design of incentive mechanisms on tokenized digital platforms.
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波动的加密市场中的代币激励:代币价格波动对用户贡献的影响
摘要加密代币通过智能合约发行和管理,在区块链系统中起到奖励作用,鼓励用户参与。与货币激励不同,由于加密货币市场上代币价格的大幅波动,代币激励的回报幅度不确定。通过关注代币价格波动,本研究调查了代币化数字平台中奖励的不确定性如何影响用户贡献。我们的经验设置是Steemit,这是一个博主根据帖子的受欢迎程度撰写帖子并分享代币奖励的平台。我们发现,虽然代币价格的高波动会导致大量博客文章,但会降低文章质量。这种二分法效应通过两种机制来解释:用户对奖励不确定性的直接反应和在波动性冲击中由代币偏好改变介导的间接反应。深入探索这一动态过程,我们的研究结果表明,代币价格波动促进了平台的网络短期效应,但削弱了长期用户的创造力。因此,我们的实证发现扩展了区块链经济学和加密货币的文献,并对代币化数字平台激励机制的设计具有实际意义。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Journal of Management Information Systems
Journal of Management Information Systems 工程技术-计算机:信息系统
CiteScore
10.20
自引率
13.00%
发文量
34
审稿时长
6 months
期刊介绍: Journal of Management Information Systems is a widely recognized forum for the presentation of research that advances the practice and understanding of organizational information systems. It serves those investigating new modes of information delivery and the changing landscape of information policy making, as well as practitioners and executives managing the information resource.
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