📌What Is The TOKENOMIC💸❗❓ (Part 1)
"The sun of liberty is set; you must light up the candle of industry and economy."
-Benjamin Franklin
✳️economies evolved from pre-historic bartering systems to money-driven and eventually credit-based economies.
During the 19th century, technology and the growth of international trade created stronger ties among countries, a process that accelerated into the Great Depression and World War II. After 50 years of the Cold War, the late 20th and early 21st centuries have seen a renewed globalization of economies.
Nevertheless In the 21st century, the economic system has faced many fundamental problems, including centralization and other issues, which are beyond the scope of this article. . So there was a great need for a new ecosystem, which, thanks to Bitcoin, started a new revolution concept in 2008.
With more than a decade,every day a new concepts like DEFI are added to it and it becomes more mature so that it can become an complete ecosystem more efficent than former economic system.The main point of cryptocurrency is to fix the problems of traditional currencies by putting the power and responsibility in the currency holders’ hands. All of the cryptocurrencies adhere to the properties and functions of money. so They each attempt to solve real-world problems.
đź”°What Is The TOKENOMIC and Why is so Important âť—âť—âť“âť“
One of the revolutionary concepts introduced by tokens is that of tokenomics or token economics. This concept is based on convincing users or investors of a project that the token derived from it can help build a sustainable economic ecosystem.
This concept is based on convincing users or investors of a project that the token derived from it can help build a sustainable economic ecosystem.
Understanding Tokenomics is Vital because its The Real Value of a Crypto or fundamentals behind it .
To put it simply " Tokenomics = Economy of the Tokens "tokenomics refers to all the qualities of a crypto token that makes it appealing to investors
, its also determin 1st rule of economy which is 'Demand and supply' in the field of cryptocurrency .
to get more information about this you can read this tuturial post:
first of all we should know what's a TOKEN and its funtionality :
to get more information about token please first read this tuturial post:
đź”°Tokenomics factors:
⚪- the development of the ecosystem
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An ecosystem where everything is sustained by the different possible interactions with the tokens. In this way, the ecosystem is made up exclusively of tokens that represent tangible assets.
This asset can be anything. A work of art, a book, a blog article, a song, a scientific study, a piece of real estate, a car and even financial assets that we are already used to. The real power of the token economy is that it allows us to move any kind of value from the real world to the virtual world. But not only that, the token economy allows us to decentralize its control.
But the development of this new concept of the economy goes through the construction of blockchain technology.
⚪-Team:
It should be noted that for a project to be successful, a strong team must support it. The people behind the project determine that the project has a chance of being widely accepted. So the team is an important part of the token economy. Let's give some examples.
For example, consider the team behind the Basic Attention token, or BAT for short. One of the main reasons BAT has been so successful is the support team. BAT co-founder Brendan Eich, co-founder of JavaScript and Mozilla Firefox. The team next to him is very talented and credible.
⚪-Token allocation:
Another important point is how the tokens will be distributed after the release. You can search for these items in WhitePaper. It is also important to check the lock-up time given to the team and consultants. Founders / creators interested in the long-term potential of the project have a long lock-up period
⚪-Community(Public Relations and Branding:)
The first step in building a token economy is to have a community that supports the principles and goals of such development. This serves to build a critical mass that gives the token project the necessary public support. This aspect will inevitably lead the token to have a growing and stable development.
In this way, the relationship between the development of the token, products and functions associated with the community is direct and proportional. The more the community is heard, included, and taken into account, the greater the push and presence of the token.
⚪Business model:
One of the key factors is the business model of the project. Projects must have a strong model that can make money. Cryptocurrencies such as Bitcoin and Bitcoin Cash are created for payment purposes, so they do not require complex business models. However, for decentralized applications, which are more than just a payment system, they need to have a strong business model.
For example, in the Golem model, they can access their resources using GNT tokens. Similarly, in EOS you have to bet to get the resources needed to run Dapps.
⚪-Real-World Utility
Another important aspect of the token economy is the usefulness that the token has. A project that adds value to the real world is a project worth developing and investing in. Another important point in this regard is to recognize whether the token is fungible or not. This feature will dictate the actual usefulness of the token for a given project.
To summarize, here are some takeaways:
-Tokenomics is the study of the economics of a crypto token — from its qualities to its distribution and production, and much more¹.
-The tokenomics for a particular crypto token is usually thoroughly discussed in the project whitepaper, and it should help you grasp the functionality, objective, allocation policy, and more of the crypto tokenÂł.
-Tokenomics is the science of the token economy. It covers all aspects involving a coin’s creation, management, and sometimes removal from a network?.
-The token economy or tokenomics, seeks the creation of an economic ecosystem supported by tokens. An ecosystem where everything is sustained by the different possible interactions with said tokens
Sources:medium-bit2me Academy
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate.
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