News
Wintermute withdrew $40 million in SOL ahead of a $2-billion token unlock, raising concerns over selling pressure as market sentiment worsens.
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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).
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Despite heavy selling by top crypto influencers, the Kaito token surged 50% post-airdrop as analysts debate its tokenomics and future market potential.
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Kaito AI allocates 20% of its token supply for airdrops and incentives, sparking excitement and concerns over insider allocation and potential sell-offs.
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Insider wallets started cashing out just three hours after the token was launched, erasing over $4 billion from its market capitalization.
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Upbit has warned investors as IOST plans a layer-2 transition, with 21 billion new tokens and a tokenomics overhaul.
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The agentic AI project’s contributors envision an AI-focused layer-1 with AI16Z as the native currency.
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Rune Christensen, the co-founder of Sky, says the ultimate goal is to turn MKR into a wrapper that represents 24,000 SKY.
5793 - Spotlight
This project bridges Bitcoin and DeFi to provide investors with an innovative way to utilize their BTC holdings in a system backed by mining operations.
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August is shaping up to be a big month for token unlocks, with just shy of $1.5 billion in tokens being released to the market.
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EOS is shifting to a fixed supply of 2.1 billion tokens and introducing halving cycles amid ongoing community skepticism and past regulatory challenges.
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While some crypto-AI tokens continue to deliver profitable trades, the long-term sustainability of the ecosystem will require more than just decentralizing AI components.
13158 - Markets News
Using a unique quantitative approach, ETHDenver speaker Brian Russ told attendees that ETH is fairly valued but could produce a 17x return by 2033.
12366 - News
Ethereum layer-2 scaling protocol Starknet will begin distributing its native network token on Feb. 20, with 700 million STRK tokens allocated across nine recipient categories.
4790 - Explained
Inflationary tokens boost liquidity through increased circulation, while deflationary models may decrease it by encouraging holding.
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The latest initiatives by the Monetary Authority of Singapore aim to develop foundational capabilities to scale tokenized markets.
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