Tokenomics: how we design them and why the token matters more than the money

We call Tokenomics all the things that enable participants to earn more tokens by contributing positively. Basically, setting up Tokenomics for your project means "What can we put in place to incentivize my community to participate in my project.

Tokens are what you get when you combine a target metric with a built-in incentive: you get an incredibly powerful mechanism for motivating people to do things! This power is why tokenomics is such a promising field and why so many protocols are using tokens to coordinate their communities.

“Tokenomics” has become a popular term in the last few years to describe the math and incentives governing crypto assets. It includes everything about the mechanics of how the asset works, as well as the psychological or behavioral forces that could affect its value long term.