The Digital Currency Initiative hosts its weekly research presentation series. Invited speakers and DCI affiliates present on their projects and other relevant research.
Wednesday’s 3:00-4:00pm ET
Who: Barton E. Lee (UNSW, Australia), Daniel Moroz (Harvard), and David C. Parkes (Harvard)
Title: 'The Political Economy of Blockchain Governance'
Many blockchain applications operate within a decentralized governance structure. We apply tools from formal political theory to develop a theory of blockchain governance. Our focus is on how features of the governance structure and environment more broadly influence forking behavior. We identify the underlying incentives leading to different types of forks, and why and when they should be expected to occur. Our results highlight the influence of market frictions, created by cryptocurrency exchanges, in promoting forks, and show that network-effects can incentivize extremism. We then discuss how our results provide an explanation for a curious phenomenon occurring on Ethereum.
Invited guests only: If you are interested in joining the meeting in-person or remotely please contact Jacobsal@media.mit.edu