Abstract

How does a new technology become valuable? Existing literature proposes that an object is perceived as valuable due to structures involving the production, evaluation, distribution, and exchange of value. Such structures are termed “value regimes.” While existing work explains the transformation of value regimes or changes in the perceived value of an object as it moves between value regimes, we know less about how value regimes come to be and expand. This study answers this gap by exploring the expansion of the value regime of the nascent technology of non-fungible tokens (NFTs). To theorize the process through which a value regime expands, I collected and analyzed qualitative data composed of interviews, podcasts, newspapers, magazine articles, conferences, and webinars focusing on the NFT market. My analysis demonstrates that the three elements constituting a value regime (normative and cultural values, governance mechanisms, and economic models of value creation and distribution) expand from specific mechanisms that lead to a value regime’s growth. Normative and cultural values support expansion through the promotion of norms and values, the resolution of internal challenges, and challenges to the entry of market actors with misaligned values. Governance mechanisms support expansion through the entry of regulative bodies and the creation of standards. Economic models support expansion through the creation of new modes of value exchange, the creation of new methods of value creation and distribution, and the simplification of exchange mechanisms. Last, I provide potential limits to expansion and expand on the model’s implications for managers.