A new social token network called Alpha has emerged, rivaling the popular Friend.tech platform but built on top of the Bitcoin blockchain.
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).
The Optimism network has revealed that it will sell 116 million OP tokens in a series of planned sales.4112
Out of the lot, 2.49 million DYDX tokens — worth $5.36 million — will be allocated to the community treasury, which funds contributor grants, community initiatives and liquidity mining, among other programs.2308
More than 386 million OP tokens are scheduled to be unlocked on May 31, more than doubling the total circulating supply.7302
Airdrops can be a great way to engage communities, but they also come with risks — from Sybil attacks to potential regulatory liability.4497
Airdrop hunting can be a lucrative enterprise, but it can also have significant financial risks attached.7072
Flatcoins need to provide a more stable and decentralized alternative to traditional currencies — otherwise, they’re nothing but investment vehicles.10993
Bearer instruments such as stablecoin harken back to the days of pre-central bank “free banking,” with all the risks that imply, a Bank of International Settlements working paper says.2321
Olympic champion boxer Oleksandr Usyk launches a new blockchain-powered tokenized ecosystem platform aimed at supporting boxers through their careers.6516
The dYdX Foundation made an abrupt change to its project’s tokenomics, but it may have done so in consultation with its attorneys.3149
Aptos’ star-studded founders and the market’s disbelief in the rally could further fuel the rise in APT price.7022
The new tokenomics intends to boost liquidity and decentralization in the platform, enabling SushiSwap to continue operations.19543
Financial services organizations can use tokenization to solve several friction points and have better risk management in place.8515
Aptos’ blockchain claims to handle three times the amount of transactions per second than Solana but day one of its launch saw the network transacting a much lower amount.6631
Users lock up their tokens and turn them into veTokens, which control the protocol's governance, according to the veTokenomics model.3810