@effect2
Transparency in tokenomics is essential for building trust with investors and users. Start by reviewing the project's token distribution—how are tokens allocated between the team, advisors, investors, and the community? A fair and clear distribution model ensures that no single party has too much control. Check if the project provides regular updates on its financial health—do they release audits, financial reports, or burn data? Projects that disclose their tokenomics clearly, along with transparent financial practices, show accountability and give users confidence that funds are being managed responsibly. Projects that are open about their tokenomics and financial decisions are more likely to foster trust and long-term commitment from their community.