Tokenisation of Digital Intangibles: A Framework for Repricing Misvalued Assets in Blockchain-Based Financial Systems

Abstract

This paper examines the persistent mispricing of digital intangible assets in contemporary financial systems and evaluates tokenisation as a mechanism for enhancing valuation accuracy and market efficiency. Traditional valuation approaches, primarily designed for tangible assets, fail to capture the economic characteristics of digital intangibles such as data, algorithms, user networks, and platform-based resources. Consequently, these assets remain undervalued due to the lack of standardised valuation models, limited liquidity, fragmented ownership structures, and insufficient transparency. To address these limitations, the study proposes a formalised multi-factor valuation framework integrating key economic signals, including data utilisation, user engagement, revenue generation, and network effects, into a unified pricing function. The model is extended with dynamic components reflecting liquidity and market sentiment, enabling continuous price formation in blockchain-based environments. The framework is implemented through smart contracts, supporting tokenisation, fractional ownership, automated revenue distribution, and real-time on-chain pricing. Empirical validation is conducted using an agent-based simulation comparing traditional and tokenised market structures across 100 digital intangible assets over 1000 time steps. The results demonstrate that tokenised markets significantly outperform traditional ones, exhibiting lower pricing error, higher liquidity, reduced volatility, and faster price discovery. Sensitivity analysis confirms the robustness of the model across a wide range of parameter configurations. The findings suggest that tokenisation represents not only a technological advancement but also a structural transformation of financial markets, enabling more transparent, dynamic, and efficient valuation of digital intangible assets, while supporting improved capital allocation in the digital economy.