@fieqry

Token valuation often struggles because velocity undermines scarcity. High turnover dilutes price support, while lower velocity concentrates value. Protocols attempt to design sinks—staking, governance, burns—to reduce velocity. For investors, understanding token velocity is as important as supply caps. A token with utility but uncontrolled velocity risks perpetual downward pressure. Conversely, controlled velocity can sustain value even with large supply. Tokenomics succeeds not through scarcity narratives alone, but through careful velocity engineering that aligns economic flow with

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