Engineering Crypto-Economies Through The Lens of Complex Systems

Cryptoeconomics is an emerging field studying the design of incentives on a blockchain system with cryptographic protocol-defined tokens. These tokenized systems are designed to optimize desirable behaviours, thereby satisfying a predefined objective. Through lessons learned from prior art in economics, financial modeling, and incentive design, Gaussian models have repeatedly proved to be an inaccurate representation of economic (by extension, cryptoeconomic) systems. The seminar will start with a broad discussion of state-of-the-art mathematics from which we will derive inspiration. These include agent-based modeling, multi-agent genetic algorithms, game theory, systems modeling, numerical optimization, and a little bit of graph theory. I will then demonstrate how complexity science applies to the memoryful non-linear markets with high kurtosis as those observed in crypto-economic systems. The seminar will conclude with a fun live demo of a multi-agent simulation of a decentralized autonomous organization, or DAO. I designed it based on the Ising model in statistical mechanics. SFI Seminar - Shruti Appiah - Ethereum FoundationLearn more at https://santafe.edu Follow us on social media: https://twitter.com/sfiscience https://instagram.com/sfiscience https://facebook.com/santafeinstitute https://facebook.com/groups/santafeinstitute https://linkedin.com/company/santafeinstitute