Game Theory Applied to Mining Pools, Token Offering, DAO, and Consensus Protocols

Explore game theory applications in blockchain ecosystems through this lecture from the Simons Institute. Delve into the economics of mining pools, token offerings, DAOs, and consensus protocols. Examine why mining pools arise, their impact on hash rates, and the game theory behind their operations. Investigate initial core offerings, platform models, and various solution concepts. Analyze token performance, security tokens, and the role of forward induction. Consider participation costs, the wisdom of the crowd, and concepts like common stock and equal sharing in blockchain systems. Gain insights into how game theory shapes the dynamics of decentralized networks and cryptocurrency economies.

Introduction
Mining Pools
Why do mining pools arise
Game theory for mining pools
Increase in hash rates
Static mining pools
Initial core offerings
Model of a platform
Solution concept
Types of Alice
Token Offering
Token Performance
Security Tokens
Forward Induction
Participation Cost
Wisdom of the Crowd
Common Stock
Equal Sharing
Limited Liability