Modeling hackathons platform for a token economy

Hackathons have become a popular tool to connect companies seeking innovations with talented challenge-seeking problem-solvers. An important factor for the success of hackathons is the effective system for distributing rewards and value and incentivizing participation. In pursuit of an efficient reward system, some digital platforms for facilitating hackathons are resorting to programmable blockchains and token-based rewards. Integration of tokens may stimulate participation, increase trust, increase the expected value of the rewards over time, and ease the distribution of rewards. However, designing such systems is hard, and anticipating the system-level outcomes is even more challenging. In this work, we develop an agent-based model to study potential scenarios in facilitating interactions between creators, companies, and the platform. Such simulations allow digital platforms to design and test their incentive layers and optimize their reward distribution with minimal cost.