Abstract

With the decentralized governance design of blockchain technology, hard forks become prevalent to help resolve disagreements in the blockchain community. We use agency theory to examine the impact of forking incentives for different actors in the blockchain community on the survival likelihood of the forked crypto project. In addition, we illustrate the relative importance of monetary vs. non-monetary benefits for different actors in increasing the survival likelihood of the forked crypto project. We conduct survival analysis on hundreds of forked crypto projects. The result shows that non-monetary benefits for both users and miners are crucial in increasing the survival likelihood of forked crypto projects. These findings can help blockchain participants to make better decisions in joining forked crypto projects and design more effective upgrades to increase the survival likelihood of the forked crypto projects.

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Paper Number 1806; Track Blockchain; Short Paper

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