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Main Authors: Liu, Yulin, Schweitzer, Mocca
Format: Preprint
Published: 2025
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Online Access:https://arxiv.org/abs/2508.21368
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author Liu, Yulin
Schweitzer, Mocca
author_facet Liu, Yulin
Schweitzer, Mocca
contents The Decentralized Physical Infrastructure (DePIN) market is revolutionizing the sharing economy through token-based economics and smart contracts that govern decentralized operations. By 2024, DePIN projects have exceeded \$10 billion in market capitalization, underscoring their rapid growth. However, the unregulated nature of these markets, coupled with the autonomous deployment of AI agents in smart contracts, introduces risks such as inefficiencies and potential misalignment with human values. To address these concerns, we introduce EconAgentic, a Large Language Model (LLM)-powered framework designed to mitigate these challenges. Our research focuses on three key areas: 1) modeling the dynamic evolution of DePIN markets, 2) evaluating stakeholders' actions and their economic impacts, and 3) analyzing macroeconomic indicators to align market outcomes with societal goals. Through EconAgentic, we simulate how AI agents respond to token incentives, invest in infrastructure, and adapt to market conditions, comparing AI-driven decisions with human heuristic benchmarks. Our results show that EconAgentic provides valuable insights into the efficiency, inclusion, and stability of DePIN markets, contributing to both academic understanding and practical improvements in the design and governance of decentralized, tokenized economies.
format Preprint
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publishDate 2025
record_format arxiv
spellingShingle EconAgentic in DePIN Markets: A Large Language Model Approach to the Sharing Economy of Decentralized Physical Infrastructure
Liu, Yulin
Schweitzer, Mocca
General Economics
Economics
Artificial Intelligence
The Decentralized Physical Infrastructure (DePIN) market is revolutionizing the sharing economy through token-based economics and smart contracts that govern decentralized operations. By 2024, DePIN projects have exceeded \$10 billion in market capitalization, underscoring their rapid growth. However, the unregulated nature of these markets, coupled with the autonomous deployment of AI agents in smart contracts, introduces risks such as inefficiencies and potential misalignment with human values. To address these concerns, we introduce EconAgentic, a Large Language Model (LLM)-powered framework designed to mitigate these challenges. Our research focuses on three key areas: 1) modeling the dynamic evolution of DePIN markets, 2) evaluating stakeholders' actions and their economic impacts, and 3) analyzing macroeconomic indicators to align market outcomes with societal goals. Through EconAgentic, we simulate how AI agents respond to token incentives, invest in infrastructure, and adapt to market conditions, comparing AI-driven decisions with human heuristic benchmarks. Our results show that EconAgentic provides valuable insights into the efficiency, inclusion, and stability of DePIN markets, contributing to both academic understanding and practical improvements in the design and governance of decentralized, tokenized economies.
title EconAgentic in DePIN Markets: A Large Language Model Approach to the Sharing Economy of Decentralized Physical Infrastructure
topic General Economics
Economics
Artificial Intelligence
url https://arxiv.org/abs/2508.21368