Tokenomics: 4 Factors That Determine a Crypto’s Success

Earning opportunities via activities such as staking, mining, yield farming, and revenue-sharingGovernanceMedium of exchange on a platform or in the whole ecosystemCollateral for other assets in the ecosystem (e.g., stablecoins)

1. UtilityThe utility is probably the most important factor in a crypto project’s tokenomics.Even if a token is deflationary, has the best price stability mechanisms, distribution, as well as a decentralized and highly efficient on-chain governance process, it won’t be worth too much if it is not used for anything.