Understand the basics of Tokenomics: a key to the success of cryptocurrency
The cryptocurrency world has exploded in recent years, with new pieces and tokens emerging every day. Basically, cryptocurrency is a digital or virtual currency that uses security cryptography and is decentralized, which means that it is not controlled by any government or financial institution. Tokenomics is a crucial component of any cryptocurrency ecosystem, the study of the economy and the distribution of tokens in a system based on blockchain.
What is Tokenomics?
Tokenomic refers to the mathematical modeling of the economy of tokens, which encompasses various aspects of the design, supply, use and behavior of a token. It is a question of analyzing how the tokens are created, distributed and exchanged in a blockchain network. By understanding tokenomics, developers, investors and market players can better understand the implications of their decisions on the ecosystem as a whole.
Supply of tokens
A fundamental concept in Tokenomics is the offer of tokens. This refers to the total quantity of token that will exist at the start of the project. The tokens offer determines the price of each token, which in turn affects its request and its market value. A large token supply can cause inflationary pressure, reducing the value of a single token.
There are three types of tokens supply:
- Fixed supply : It is at this time that a specific quantity of tokens is created at the start of the project.
- Avestation chain : The tokens can have an acquisition calendar, which means that investors can only buy or keep certain tokens for a defined period before they are available to be negotiated.
- Burn Protocol : In some cases, tokens can have a burning protocol in place, where excess tokens are destroyed to maintain the supply of token.
Food in the circulation of tokens
The supply in circulation is the amount of tokens that exist outside of reserves or treasury sales. This can affect market volatility and the feeling of investors when negotiating a particular token.
The circulation of tokens generally includes:
- Reserve : Tokens held by developers, founders or treasure for future use.
- Treasury : Home tokens for long -term detention, such as during periods of high demand or market instability.
Distribution of tokens
The distribution of tokens is another crucial aspect of tokenomic. This refers to how new tokens are created and distributed in the ecosystem. The distribution model can affect:
- Inflationist pressure : Excessive creation of tokens can cause inflation, reducing the value of a single token.
- Market share : tokens that are rarer or that have higher demand can be able to order higher prices.
Use of tokens
The use of tokens is another essential aspect of tokenomics. This refers to how tokens are used in the ecosystem and their potential impact on market dynamics.
The tokens can be used for various purposes, including:
- Exchange costs : The tokens can be used to pay for exchange costs.
- Transaction costs : The tokens can be used to pay the transaction costs.
- Calls smart contracts : The tokens can be used as an entry for intelligent contracts, which perform specific actions on the blockchain.
Models of tokens
There are several tokens distribution models which can influence the economy of the tokens of a project:
- Public sale
: Half holders must buy tokens at market prices when available.
- Private sale : The holders of tokens receive tokens at reduced prices before the public sale.
- Lotage : The tokens are purchased in large batches to control their price and their offer.
Mechanisms for distributing tokens
Some projects use tokens distribution mechanisms to manage tokens offer:
- Exchange of tokens : tokens holders can exchange a token for another to buy more.
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