Tokenomics: 4 Factors That Determine a Crypto’s Success

Social tokens have shown their efficiency on incentivizing individuals to share their skills with others. Projects that have succeeded in creating thriving communities all have strong Tokenomics. Tokenomics is a successful community’s superpower.

If you’re considering whether or not to buy a crypto asset, understanding the tokenomics is one of the most useful first steps you can take to make a good decision.

The term ‘tokenomics’ is a hybrid of token and economics, and its meaning is quite similar to economics. Tokenomics studies how people interact with tokens. Specifically, the issuance, distribution, and burning of tokens of a cryptocurrency. Economics is often divided into micro- and macro-economics. In this article I want to take more of a micro v... See more

In this third part, I’m going to cover utility. Utility is a subsection of the Demand side of the tokenomics equation. Even if a token has a great supply model, it still needs a good reason to exist and for people to hold it. Without those, there will be no demand for it, and no one will buy or hold it.

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