Reassessing blockchain in global development: Tokenization of infrastructure, social impacts, and the axie infinity case in the Philippines

Developing countries struggle to fund infrastructure projects. Researchers suggest blockchain-based tokenization as a potential solution, yet concerns about social inequality remain underexplored. Existing studies on tokenization focus primarily on conceptual insights and limited case studies. Meanwhile, empirical evidence on its social implications in developing economies is lacking. This study addresses the gap by conducting a meta-analysis of secondary datasets assessing the Philippines' readiness for infrastructure tokenization and a case study of Axie Infinity to examine the social risks of token-based economic models. Findings indicate that the Philippines faces low digital competitiveness, financial literacy challenges, and gender disparities that limit equitable benefits from blockchain adoption. Tokenization risks reinforcing wealth concentration, as seen in the case of Axie Infinity, where lower-income participants have suffered financial losses while wealthier individuals have benefited from playing the game. Regulatory and security gaps in the blockchain ecosystem further amplify these risks. At a time when the Philippines' Securities and Exchange Commission (SEC) is actively developing rules for crypto-related services through its draft SEC Rules on Crypto-Assets Service Providers (CASP), a deeper understanding of tokenization's social implications is essential. As the government takes steps to regulate this space, this study provides timely insights into the potential social risks and challenges that must be addressed to ensure equitable adoption. One perspective likens this technology to the Internet in the 1990s, suggesting that it will have a lasting presence and continue to shape access to information, education, and economic opportunities, particularly in developing countries. Given blockchain's inevitable expansion, critically examining its risks is essential to ensure it does not deepen existing inequalities, particularly in emerging economies. • Tokenizing infrastructure development projects using blockchain could solve funding gaps. • The social risks of blockchain-based tokenization in developing economies are underexplored. • Tokenization risks widening social divides in developing countries like the Philippines. • The Philippines' low digital competitiveness and financial literacy limit the benefits of blockchain. • Regulatory and security gaps in the blockchain ecosystem further amplify social risks.