Dual Token Blockchain Economy Framework: The Garment Use Case

Abstract

Over the last few years, the introduction of blockchain technology has brought forth a new set of challenges concerning blockchain token economics and its underlying business needs. Many Initial Coin Offerings (ICOs) have focused on a single token that facilitated the initial project funding but complicated the actual implementation. Business arrangements can be complex and result in disputes between even the most well-intentioned parties. Supply chain transparency requires careful modeling of a specific implementation of the blockchain technology to correctly capture it. In this paper, we propose a dual token model that takes into consideration both the financial aspect and the non-fungible nature of complex, real-world industries. Furthermore, we demonstrate the efficacy of our model to accommodate the stages hidden under the umbrella term “supply chain transparency” as it comes to the costing involved in producing the firm’s products internal supply chain transparency. We show how this approach increases not only the transparency of the manufacturing process but also the profit and transparency for external stakeholders.