To incentivize or not: Impact of blockchain-based cryptoeconomic tokens on human information sharing behavior

Abstract: Cryptoeconomic incentives in the form of blockchain-based tokens are seen as an enabler of the sharing economy that could shift society towards greater sustainability. Nevertheless, knowledge of the impact of these tokens on human sharing behavior is still limited and this poses a challenge to the design of effective cryptoeconomic incentives. This study applies the theory of self-determination to investigate the impact of such tokens on human behavior in an information-sharing scenario. By utilizing an experimental methodology in the form of a randomized control trial with a 2x2 factorial design involving 132 participants, the effects of two token incentives on human information-sharing behavior are analyzed. Individuals obtain these tokens in exchange for their shared information. Based on the collected tokens, individuals receive a monetary payment and build reputation. Besides investigating the effect of these incentives on the quantity of shared information, the study includes quality characteristics of the information, such as accuracy and contextualization. The focus on quantity while excluding quality has been identified as a limitation in previous work. In addition to confirming previously known effects such as a crowding-out of intrinsic motivation by incentives, which also exists for blockchain-based tokens, the findings of this paper point to a hitherto unreported interaction effect between multiple tokens when applied simultaneously. The findings are critically discussed and put into the context of recent work and ethical considerations. The theory-based-empirical study is of interest to those investigating the effect of cryptoeconomic tokens or digital currencies on human behavior and supports the community in the design of effective personalized incentives for sharing economies.