On Tokenomics
Jan 12, 2023
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Tokenomics (a portmanteau for token and economics) represents the monetary policy of tokens that directly contributes to their price fluctuations. In bull markets, tokenomics were given utmost priority, sometimes constituting full theses for investment decisions. When the euphoria wears off in the bear, however, founders and market participants are left realizing that tokenomics can delay a weak project’s demise, but cannot prevent it altogether.
The reality is that regardless of tokenomic design, projects need product-market fit to sur...