Opinion
Tokenomics favor speed over conviction, using genuine supporters as exit liquidity. Crypto’s mainstream future requires replacing extraction with participation incentives.
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Tokenomics News
Tokenomics is the science of a token economy, encompassing various aspects of token creation, distribution, regulation, utilization and sometimes removal. In 1972, B.F. Skinner, a psychologist at Harvard University, first suggested the idea of tokenomics, calling it the “science of token and its economics.” Tokenomics reveal how cryptocurrencies work in a broader ecosystem and how tokens influence the activity in a network.
Tokenomics can be related to how demand and supply affect the outcome of digital currencies. Assessing the methods used to drive the coin’s usage, adoption or importance can be useful in estimating the future value of a cryptocurrency. Important methods are employed to drive the demand and supply of a cryptocurrency. Each crypto project has an approach used to grow the value of a coin and its adoption, such as mining and staking, token burns, rebasing, activity rewards, yields and many other methods.
Tokenomics provide a solution to what value a crypto has, how the crypto will appreciate, why the developer created the cryptocurrency and what the future of the coin or the token looks like. Some cryptocurrencies, such as Bitcoin (BTC), have a deflationary supply wherein there is a decrease in the supply of coins over time. In contrast, others strive toward stable usage with an inflationary supply that increases over time, like Dogecoin (DOGE).
- News
ZKsync co-creator Alex Gluchowski has proposed to shift the project’s governance token to one with “economic utility” and value capture.
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Institutions are tokenizing hundreds of millions in capital on the Avalanche blockchain, which is turning government and TradFi integrations “into onchain reality,” according to Nansen.
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A major update to Counter-Strike 2’s item mechanics wiped nearly $2 billion from its $5.8 billion skin market, igniting debate over central control in gaming.
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The FET token’s price fell by over 93% since the merger of the Artificial Superintelligence Alliance, a drop that is unrelated to Ocean Protocol’s actions, according to its founder.
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Jackson Denka, CEO of Azura, believes crypto airdrops will eventually take a backseat to IPO’s, but what if there was a way to save them?
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Real-world asset tokenization needs compliance frameworks and verified ownership checks built into the infrastructure to prevent fraud and build institutional trust.
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Activist investor calls for Polygon to scrap 2% inflation and launch buybacks to rescue POL’s price and restore investor confidence.
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US First Lady Melania Trump promoted her MELANIA token in an AI video, but questions linger over $10 million in team token sales and a 98% price collapse.
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A crypto asset manager wants future HYPE emissions and community rewards to be cut, slicing its token supply by 45% in a bid to make HYPE easier to value.
3318 - Analysis
TGEs promise liftoff for new blockchains, but too often, they end with early exits, fading ecosystems and selling pressure for long-term supporters.
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Hyperliquid’s HYPE token faces a monthly supply overhang of $410 million due to its vesting schedule, warned Arthur Hayes’ Maelstrom Fund.
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The proposal seeks to create more value for long-term WLFI tokenholders, while exploring additional protocol revenue sources for token buybacks.
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Wormhole’s native token has had a tough time since launch, debuting at $1.66 before dropping significantly despite the general crypto market’s bull cycle.
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Polkadot said that under the old tokenomics model, the total supply of DOT could have swelled to more than 3.4 billion tokens by 2040.
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