Associate Tekin Salimi has written “Building Blockchains – Ripe Model for Principal-Agent Problem” for The Cointelegraph. The article discuss an emerging business model which enables companies to make money in new ways through the creation of open-source protocols and code. Below is an excerpt of the article.
The cryptoeconomic business model upsets the classic principal-agent equilibrium that is often achieved by using reward and deterrent incentive games. This is done by introducing an entirely new class of stakeholder into the ecosystem — the Keepers of a Blockchain network (e.g. tokenholders and other participants who provide a form of ‘paid labor’ into the network, such as validators, miners, etc.). If the traditional business has two classes of players (managers and owners), the cryptoeconomic business has three (managers, owners and Keepers).
You can read more about blockchain technology from our team here.
To discuss these issues, please contact the author(s).
This publication is a general discussion of certain legal and related developments and should not be relied upon as legal advice. If you require legal advice, we would be pleased to discuss the issues in this publication with you, in the context of your particular circumstances.
For permission to republish this or any other publication, contact Janelle Weed.
© 2019 by Torys LLP.
All rights reserved.