Hello! Have you ever wondered why some crypto projects grow while others disappear? The answer often lies in tokenomics.
In simple terms, tokenomics is the economy of the token. It's the rules of the game that determine how the token will function: how many there will be, how it will be distributed, and what it is needed for.
Key elements to know:
* Supply: How many tokens exist in total and how many are in circulation.
* Deflationary model: Tokens are burned over time, making them scarcer (as with $GALA, which we discussed).
* Inflationary model: New tokens are constantly created.
* Distribution: How tokens were distributed among the team, early investors, and regular users. Fair distribution is a sign of reliability.
* Utility: The most important point! What is the token used for?
* Voting for changes in the project.
* Payment for services (for example, in $RNDR for rendering).
* Staking for passive income.
Tip: Good tokenomics is where the token has real utility, not just speculative value.
Which project do you think has the strongest tokenomics? Write below 👇
