Web3 Technologies for Digital Innovation and Transformation
Permanent URI for this collection
Browse
Recent Submissions
Item IT Platform Grants - Boosting User Engagement but Hindering Innovation : Evidence from Blockchain Mainnet(2025-01-07) Seo, Wonbin; Ahn, Jae-HyeonThis study investigates the impact of grants on user activity and project innovation within the Arbitrum mainnet network, an under-explored area in blockchain research. Using the Difference-in-Differences (DID) methodology, the study compares projects that received grants to those that did not. Results show that grants significantly boost user engagement, with grant-supported projects seeing approximately 40,280 additional transactions per week. However, grants also correlate with a decline in innovation, as evidenced by 10.22 fewer weekly updates on grant-supported projects. These findings suggest that while grants increase user activity by focusing attention on familiar and secure projects, they may inadvertently hinder innovation and reinforce oligopolistic tendencies. The study highlights the need for balanced grant policies in IT platforms to ensure both user engagement and ongoing innovation.Item Resale Royalties for Digital Goods(2025-01-07) Ju, Harang; Petropoulos, GeorgiosIn recent years, the resale market for digital goods has grown substantially, enabled by blockchain smart contracts that enable and enforce resale royalties. This paper explores the economic impact of these resale royalties on digital goods and examines whether firms should monetize digital products solely through secondary market royalties or use a combination of primary and secondary sales. Using a game-theoretic model, we analyze a monopolistic seller's optimal pricing and royalty strategies in a market where resale is either prohibited or allowed with royalties. Our findings suggest that enforcing resale royalties through blockchain smart contracts can increase profitability by capturing revenue from secondary sales. Additionally, we demonstrate that the decision to implement royalties depends on market conditions, including the depreciation rate of goods and the relative size of the secondary market. These insights contribute to economic theory and offer practical guidance for firms navigating the evolving digital goods market.Item (De)Centralization in Blockchain Open-Source Development Community(2025-01-07) Petryk, Mariia; Li, JiasunThe successful operation of a blockchain system crucially relies on its management of software development activities. Not only does the technological functionality of a public blockchain system depend on the quality of its source code, but also the “neutrality” of a blockchain system depends on access to and control over its source code. In this paper, we delve into the dynamic evolution of collaboration within the open-source developer community of blockchain projects. Utilizing empirical analysis techniques, we demonstrate the tendency of initially decentralized open-source communities to gravitate toward more centralized and unevenly distributed structures. Additionally, our analysis reveals that inputs to the blockchain’s software code are concentrated among a small group of contributors. Our findings have implications for the managers of decentralized open-source technology and policymakers who aim to preserve impartial access to technology.Item Decentralized Autonomous Organizations: Can Decision Structures Enhance Participation?(2025-01-07) Van Haaren, Magnus; Klapper, HelgeMisalignment between individual preferences and organizational decisions can lead to demotivation, absence, and turnover. This is particularly challenging for decentralized organizations that rely on management tools based on hierarchical authority to limit these negative effects of misalignment. We theorize that (decentralized) organizations can use decision-making structures to moderate the negative impact of misalignment. Using a dataset of 140 decentralized autonomous organizations, we find that implementing weighted decision-making structures, where members can express preference intensity, significantly alleviates this negative impact. Likewise, quadratic decision-making structures, which limits the influence of members with high voting power, reduces the adverse effects of misalignment.Item Introduction to the Minitrack on Web3 Technologies for Digital Innovation and Transformation(2025-01-07) Henfridsson , Ola; Gregory, Robert; Yoo, Youngjin