Tokenization of the Common: an Economic Model of Multidimensional Incentives.

The concept of the tragedy of the commons, originally rooted in economics, describes the depletion of shared resources due to self-interested actions by individuals. This work proposes a novel solution to address this economic challenge by leveraging tokens to capture its multidimensional nature. By utilising blockchain and DLTs, this decentralised approach aims to achieve a social optimum while promoting self-regulation. The paper presents a mathematical treatment of the tragedy of the commons, incorporating multi-dimensional tokens and exploring the divergence from the classic optimal solution, highlighting the potential of tokenisation in shaping a sustainable and efficient economy.