@infiniteharmoniz
Tokenomics refers to the economic model behind a cryptocurrency, which includes factors like token supply, distribution mechanisms, inflation rates, and incentives for holders or users. It outlines how tokens are created, used, and transferred within a network. Understanding tokenomics is critical for investors because it influences a project's long-term sustainability, price stability, and growth potential. Good tokenomics ensures the token has a clear use case, aligns incentives, and creates a balanced supply-demand relationship, while poor tokenomics can lead to inflation, devaluation, or unsustainable growth.
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