Discovering and Developing the Blockchain Cryptoeconomy

26 Pages Posted: 29 Jul 2016 Last revised: 26 Nov 2017

Date Written: August 18, 2017


Blockchain is an institutional technology to coordinate and govern distributed ledgers of information. This paper examines the economic problem facing blockchain entrepreneurs as they use blockchain for political exit to create new private institutions (i.e. crypto-secession). The analysis draws on the mainline economics of new development economics, and in particular focusing on the economic problem of institutional entrepreneurship. The economic problem for the blockchain entrepreneur is defined as discovering the complementary combinations of blockchains to form a new decentralised frontier society, the cryptoeconomy. This is a higher-order explanation for the current collaboration between blockchain entrepreneurs within hybrid privately governed organisations, such as Bitcoin Centres and hackerspaces (Allen 2017).

Keywords: Blockchains, cryptoeconomics, new institutional economics, new development economics, non-price coordination

Suggested Citation

Allen, Darcy, Discovering and Developing the Blockchain Cryptoeconomy (August 18, 2017). Available at SSRN: or

Darcy Allen (Contact Author)

RMIT University ( email )

440 Elizabeth Street
Melbourne, 3000

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