Tokenomics 101: The Basics of Evaluating Cryptocurrencies - DeFriday #19

Understanding a token’s supply, and how that supply is going to change over time, is one of the biggest factors in your ability to get a good return on investing in a project.

On the supply side, a token will increase in value if fewer of those tokens exist—we call that deflation. A token will decrease in value if more of them exist—that’s inflation. When you’re evaluating the supply side you don’t have to worry about things like whether the token has any utility, or whether it will generate income for its holders. You’r... See more

Supply is obviously just one piece of the puzzle though. So in future pieces of this series we’ll also dig deeper on demand, game theory, ROI, and other aspects to good tokenomics worth knowing before investing or launching a project of your own. 

Tokenomics 1) Classify by market cap Check the market cap.  The lower the market cap, the higher the risk. 2) Figure out the current and total supply Find out the number of tokens in supply and the total number of tokens that will be minted. 3) Figure out the Allocation of tokens Who has how many tokens. What´s the vesting schedule look like? ... See more