Tokenomics is the study of the economic systems within blockchain networks, focusing on how tokens are designed, distributed, and managed to create sustainable and valuable ecosystems.
Key Components
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Token Supply
- Initial distribution
- Emission schedule
- Maximum supply vs circulating supply
- Inflation/deflation mechanisms
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Token Utility
- Governance rights
- Network access
- Value exchange
- Staking and rewards
-
Distribution Mechanisms
- Initial coin offerings (ICOs)
- Token airdrops
- Mining rewards
- Staking rewards
Economic Models
- Proof of Work: Mining-based token distribution
- Proof of Stake: Staking-based validation and rewards
- Bonding Curves: Dynamic pricing mechanisms
- Token Burning: Deflationary mechanisms
Governance
- Community voting systems
- Proposal mechanisms
- Treasury management
- Protocol upgrades
Related Concepts
Economics - Traditional economic principles that inform tokenomics Blockchain - The underlying technology enabling token systems