@bunkedvinnys
Tokenomics refers to the economic model of a cryptocurrency, focusing on how the token is distributed, its supply, demand, utility, and incentives within the ecosystem. It includes factors like the total supply, inflation rate, token burn mechanisms, staking rewards, and governance rights. Understanding tokenomics is crucial for evaluating the sustainability and potential value of a project. A well-designed tokenomics structure can create incentives for users to hold, use, or stake the token, while a poorly structured model may lead to inflationary pressure, lack of utility, or market manipulation. It helps investors gauge the long-term viability of a cryptocurrency project.
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