Abstract

The so-called «tokenomics» is the beating heart of permissionless blockchain. Crypto prices incentivize good behaviors and consensus generation in the network. Crypto-market integrity affects both allocation efficiency and the good functioning of the ecosystem in a self reinforcing process. Flaws in crypto-market price formation may threaten confidence in blockchain technology and the long-term survival of decentralized finance. This paper reviews the main factors hindering crypto-market integrity and how they are addressed in the recently approved EU Regulation on the Markets in Crypto-assets (MiCAR). The new framework introduces a toolbox for public/private market surveillance that could give momentum to the EU crypto markets. Forthcoming developments and challenges for regulators and participants in decentralized finance are also highlighted