Quick Notes: What is Tokenomics? This Wasn’t Taught in ECON 101
Quick Notes of Tokenomics:
This post is a summary of What is Tokenomics? This Wasn’t Taught in ECON 101. The article drives clarity for how to evaluate and understand the story of digital tokens with layered data called tokenomics.
The price isn’t always right! But, it helps understand the success of tokens.
Price is determined by the standard economic principle of supply and demand
Price can be used to discover patterns and draw correlations to prior crypto events
At the outset of a token’s inception, supply usually chosen by the token’s founders
Market capitalization is a result of price of a token multiplied by the supply of the token- there are ways to get really funky with this data that can uncover insights
Token allocation can build or destroy a project.
Token allocation brings insight into whose voice influences the projects community
A project with unbalanced token allocation can fail due to the decisions of the primary decision makers on the project
A project with an accurate and public record of token allocation can help reduce the risk of project collapse by taking account the level of ownership one entity has
Feeling Retro? Check out one of my previous articles!
These quick notes provide a glimpse into how you can evaluate crypto projects . Read the full article to gain deeper insights and perspective?
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About the Author:
Hey friends! Thanks so much for checking out the Crypto Jeter newsletter. I’m Austin and I write this newsletter weekly to shine a light on emerging web3 startups and display the innovation and various evolutionary moments impacting the industry.
In 2017, during my sophomore year at Morehouse College, I bought my first fraction of a Bitcoin and have since been inspired by the financial access blockchain technology creates.
Over the last 5 years, I’ve built community and learned so much and am excited to share my thoughts with the crypto ecosystem
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