🎞🎞🎞🎞🎞🎞🎞🎞
📊 What is tokenomics?
In simple terms, tokenomics is the economics of tokens, a set of rules that defines how the token operates.
✍️ What does tokenomics include?
⏺ Total token supply – that is, the maximum number of tokens that will be issued.
⏺ Distribution – who and in what proportion tokens are given (founders, investors, community).
⏺ Emission/dilution (burning) mechanisms – how tokens are created and destroyed.
⏺ Use (Utility) – why the token is needed (for purchases, voting, discounts).
⏺ Incentives – how tokens encourage users to participate in the project.
🤨 Why is it important to analyze tokenomics?
Because tokenomics affects the following aspects:
⌛ Price growth potential – supply and demand determine the token price.
⌛ Project stability – strong tokenomics = long-term stability.
⌛ Level of decentralization – how tokens are distributed indicates how independent the project is.
⌛ Community participation – well-thought-out incentives attract users.
🧐 How can tokenomics be analyzed?
🔺 Study the whitepaper – this is the project's main document where you will find answers to most questions.
🔺 Compare total and circulating supply – if there is a large difference, it indicates that many tokens may enter the market in the future, which could put pressure on the price.
🔺 Analyze the distribution – know when the team and investors can sell their tokens. Understanding the lock-up periods is crucial, as it helps determine when price pressure may occur.
🔺 Understand token utility – if the token has real use cases in the project, it will be valued more. However, sometimes the hype surrounding a token can have a greater impact than its utility.
🔺 Look at dilution (burning) mechanisms – burning tokens reduces supply and can help with price growth.
📌 Tokenomics – a crucial tool for assessing the future of a project. It allows you to see the development prospects of the project. But remember, the price is primarily determined by demand: if there is no demand, tokenomics or utility aspects cannot do anything. ☝️
