I think setting the mining and digging difficulty of in game blocks based on the respective tool's market price would create a Minecraft economy similar to the hash power adjustment functionality of Bitcoin.
By limiting the amount of time it takes to mine each block of in game materials, this would allow true value of in game time to be expressed through the tools necessary to gather them.
Paper can be made scarce by requiring a blockchain golden shovel in order to harvest it, while also changing SugarCane's harvest time (raw paper material) based on the shovel's current value.