DeTEcT: Dynamic and Probabilistic Parameters Extension

ArXiv ID: 2405.16688 “View on arXiv”

Authors: Unknown

Abstract

This paper presents a theoretical extension of the DeTEcT framework proposed by Sadykhov et al., DeTEcT, where a formal analysis framework was introduced for modelling wealth distribution in token economies. DeTEcT is a framework for analysing economic activity, simulating macroeconomic scenarios, and algorithmically setting policies in token economies. This paper proposes four ways of parametrizing the framework, where dynamic vs static parametrization is considered along with the probabilistic vs non-probabilistic. Using these parametrization techniques, we demonstrate that by adding restrictions to the framework it is possible to derive the existing wealth distribution models from DeTEcT. In addition to exploring parametrization techniques, this paper studies how money supply in DeTEcT framework can be transformed to become dynamic, and how this change will affect the dynamics of wealth distribution. The motivation for studying dynamic money supply is that it enables DeTEcT to be applied to modelling token economies without maximum supply (i.e., Ethereum), and it adds constraints to the framework in the form of symmetries.

Keywords: Token Economy Modeling, Wealth Distribution, Macroeconomic Simulation, Dynamic Money Supply, Agent-Based Modeling, Crypto Assets (Token Economy)

Complexity vs Empirical Score

• Math Complexity: 7.5/10
• Empirical Rigor: 2.0/10
• Quadrant: Lab Rats
• Why: The paper introduces advanced mathematical extensions to the DeTEcT framework, including dynamic and probabilistic parameters, matrix operations, and symmetry analysis, but lacks empirical backtesting or real-world data validation, focusing instead on theoretical derivations and framework generalization.

  flowchart TD
    A["Research Goal: Extend DeTEcT framework<br>to model dynamic money supply"] --> B["Methodology: Four-way Parametrization"]
    
    B --> C1["Dimension 1: Static vs Dynamic"]
    B --> C2["Dimension 2: Probabilistic vs Non-Probabilistic"]
    
    C1 & C2 --> D["Computational Process:<br>Apply parametrizations to DeTEcT"]
    
    D --> E["Key Findings/Outcomes"]
    
    E --> F1["Derives existing wealth<br>distribution models"]
    E --> F2["Enables modeling of<br>non-capped token economies"]
    E --> F3["Introduces symmetry<br>constraints via dynamic supply"]
    E --> F4["Validates framework<br>restrictions & robustness"]