Abstract
Motivated by financial analytics for volatile behavior of cryptoassets such as Bitcoin and Ether, we generalize a recent paper of Cong, Li and Wang (2019) to take time-varying volatility process into account and investigate its effect on tokenomics including user adoption and price valuation. Our finding reveals that high adoption of userbase and stability of token's price are associated with volatility reduction of the platform productivity. In addition, this model can be modified for IoT blockchain by considering IoT nodes as the user in a peer-to-peer network.