Monetary holdings, speculation, and transaction costs stability in two-token blockchains

Dual-token models are being adopted by blockchains more and more frequently, towards an effort for improving stability and functionality of the platform. Despite their increasing importance and complexity, contributions for a deeper understanding of their underlying features seem to be lacking. In an attempt to try filling this gap, this study investigates the economic ramifications of this model, focusing on three main related issues. The dynamics of the two-token holdings, and how they relate to each other. The multiplier effect and dual pricing's potential, for speculative trading, which may emerge when one token can be obtained for free by holding the other token. The possible difficulty in preserving stable transaction costs, in fiat currency, which represents a main goal in some blockchains. The author proposed a theoretical framework to examine these three points and talk about how they affect users and blockchain platforms. Based on this research, dual-token blockchains appear to have some advantages but also bring additional economic complexity that needs to be carefully managed.