An Agent-Based Model Framework for Utility-Based Cryptoeconomies

TL;DR

This paper presents a novel agent-based modeling framework to simulate and analyze the dynamic evolution of utility-based cryptoeconomies, demonstrated through a case study on Filecoin.

Contribution

It introduces a new ABM framework for modeling blockchain economies, incorporating supply metrics and autonomous decision-making agents.

Findings

The framework effectively models cryptoeconomy dynamics over time.

Different strategies and external factors significantly impact agent rewards.

The approach provides insights into the evolution of blockchain-based economic systems.

Abstract

In this paper, we outline a framework for modeling utility-based blockchain-enabled economic systems using Agent Based Modeling (ABM). Our approach is to model the supply dynamics based on metrics of the cryptoeconomy. We then build autonomous agents that make decisions based on those metrics. Those decisions, in turn, impact the metrics in the next time-step, creating a closed loop that models the evolution of cryptoeconomies over time. We apply this framework as a case-study to Filecoin, a decentralized blockchain-based storage network. We perform several experiments that explore the effect of different strategies, capitalization, and external factors to agent rewards, that highlight the efficacy of our approach to modeling blockchain based cryptoeconomies.