# Review of Blockchain Tokens Creation and Valuation
###### Abstract  
Blockchain and tokens are relatively new research areas insufficiently explored from both technical and economic perspectives. Even though tokens provide benefits such as easier market access, increased liquidity, lower transaction costs, and automated transactional process, their valuation and price determination are still challenging due to factors such as a lack of intrinsic value, volatility, and regulation making trading risky. In this paper, we address this knowledge gap by reviewing the existing literature on token creation and valuation to identify and document the factors affecting their valuation, investment, and founding, as well as the most promising domains of applicability. The study follows the PRISMA methodology and uses the Web of Science database, defining clear research questions and objective inclusion criteria for the articles. We discuss token technical development, including creating, issuing, and managing tokens on an Ethereum blockchain using smart contracts. The study revealed several key factors that significantly impact the field of tokenomics: demand and supply, social incentives, market conditions, macroeconomics, collective behavior, speculation, and inclusion in index funds. The most relevant use cases of blockchain and tokens are related to the digitization of virtual and physical assets, accountability, and traceability usual in smart grids or supply chains management, social governance, and art and gamification including metaverse. blockchain; tokens economy; token development; Ethereum; token valuation; tokens use case and applicability +
Footnote †: journal: _Future Internet_  
The incorporation of tokens to the blockchain ledger creates a new layer of functionality, as tokens can serve as a medium of exchange, represent physical assets, and possess value, supporting various economic activities. Cryptocurrencies are a new form of decentralized digital money and a subset of tokens that may have evident usefulness as a means of storing value [8]. They are designed to facilitate the transfer of value between parties using their unit of account [9]. Cryptocurrencies pose significant risks for users as they feature high volatility and are less regulated than traditional financial markets, thus not offering a stable medium of exchange [10]. Asset tokenization is another significant economic innovation brought by blockchain technology, with Ethereum playing a crucial role in introducing and popularizing it [11]. The Ethereum blockchain platform supports the development of decentralized applications through smart contacts that are executable source codes enforcing the terms and conditions of specific agreements [12]. It enables the creation of tokens instead of cryptocurrencies, that might symbolize possession of tangible assets, right to access, or alternative manifestations of worth [13; 14]. The precise characteristics of blockchain tokens and the tokenization process may differ based on the intended purpose of their creation [15]. They can correspond to physical assets such as gold, real estate, and art, or abstract assets such as voting rights, ownership rights, or content licensing. The security tokens can give the holder a share or a vote in a company [16]. Utility tokens are a way of accessing a product or service, usually on a specific blockchain network, facilitating the operations of a decentralized market, covering transaction fees, or governing a decentralized autonomous organization or system [17]. Research on tokens is still in its early stages compared to traditional markets, however, there is a greater diversity of blockchain tokens which makes the technical and economic decisions challenging. Different tokens may have unique technical features, use cases, and economic implications, requiring careful consideration and expertise when making decisions related to their creation and economic valuation.