@fuzzes

Tokenomics plays a critical role in a project’s long-term sustainability. Start by reviewing the project’s token distribution model—how are tokens allocated among the team, investors, and community? A fair distribution ensures that no single party holds too much power. Check if the project has mechanisms like staking, burning, or rewards to drive demand and reduce supply, creating upward pressure on token value. Also, evaluate whether the token has a clear utility—does it serve a purpose in the ecosystem, like governance or transaction fees? Projects with sound tokenomics, designed to align incentives between users, developers, and investors, are more likely to maintain long-term value and growth.

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