@silent71dragon
Tokenomics shapes project longevity—tight supply caps (e.g., Bitcoin) drive scarcity, while utility (e.g., AAVE’s staking) ties value to usage. Poor designs, like excessive inflation in 2021’s failed projects, erode trust. Investors should assess emission schedules, burn mechanisms, and demand drivers. AAVE’s buyback ($24M planned) and UNI’s fee potential signal strong models, per March 2025 data. Weak tokenomics, like over-allocated treasuries, risk dilution. Suggestion: Prioritize projects with transparent, deflationary designs and real revenue, using on-chain metrics (e.g., staking ratio) to gauge sustainability.
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