@shadow28rider
Token economics shapes a project’s sustainability by aligning incentives through token distribution, utility, and governance. Well-designed models, like MakerDAO’s MKR burn mechanism, stabilize value and encourage participation. Poor designs risk inflation or centralization. Investors should evaluate token supply, vesting schedules, and utility within the ecosystem. Projects with clear, deflationary models and active governance offer better long-term potential. Avoid those with excessive token issuance or unclear value propositions.