What makes an economy?

An economy is an area of the production, distribution and trade, as well as
consumption of goods and services by different agents. Understood in its broadest sense, ‘The economy is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the production, use, and management of resources’. Economic agents can be individuals, businesses, organizations, or governments. Economic transactions occur when two groups or parties agree to the value or price of the transacted good or service, commonly expressed in a certain currency.

Cyberspace economies (Relay Chain Podcast #5)

It is common to refer to activities related to a blockchain as on-chain and off-chain. A blockchain’s on-chain activities clearly delineate a social domain and thus boundary of an economy. Such cyberspace economies have particular practices (mining, staking), discourses (finality, security, immutability, sovereignty), and material expressions associated with the production (states, protocols, runtimes, smart contracts), use (state changes, transactions), and management (policy, governance) of resources.