@focu234
The utility of a cryptocurrency's token plays a crucial role in its ecosystem's functionality. Start by understanding the token’s role—does it facilitate transactions, governance, or provide access to specific services within the platform? Tokens with clear, essential use cases—like staking for rewards, paying for network fees, or participating in decentralized governance—are more likely to have lasting value. Also, assess how the token’s utility supports network growth—are incentives aligned with encouraging adoption, such as rewarding active users or developers? Finally, consider how the token interacts with the project’s long-term goals. A well-designed tokenomics model that adds value to the ecosystem can drive demand and encourage long-term sustainability.
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