Tokenomics 102: Digging Deeper on Supply

Game Theory: Game Theory asks you to consider what additional elements in the tokenomics design might help increase the demand for the token.

Early versions of token distributions have led to unsustainable dynamics wherein speculators are rewarded instead of those who are adding consistent value to networks through actual usage.

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

The last thing you want to consider with supply is allocation. Do a few investors hold a ton of the tokens which are going to be unlocked soon? Did the protocol give most of its tokens to the community? How fair does the distribution seem? If a bunch of investors have 25% of the supply and those tokens will unlock in a month, you might hesitate bef... See more