Discover and read the best of Twitter Threads about #Week_1
Most recents (5)
#Week_1: #Tokenomics Day 5: On the meme of market caps & unlocks by @cobie
terms repeated in the previous summaries: Mcap: price multiplied by the amount of tokens that are currently in circulation.
FDV: price multiplied by the total amount of tokens that will ever exist
terms repeated in the previous summaries: Mcap: price multiplied by the amount of tokens that are currently in circulation.
FDV: price multiplied by the total amount of tokens that will ever exist
2- Smth interesting here, we can consider Market Cap as a measure of public $ buying= demand, while FDV is a measure of supply.
As demand increases for unlocked coins= market cap UP, FDV increases proportionally, even though demand for the locked ones didn't necessarily increase
As demand increases for unlocked coins= market cap UP, FDV increases proportionally, even though demand for the locked ones didn't necessarily increase
3- let's introduce a new term: Bullish unlock?
if unlocks increase supply but not demand, how does a bullish unlock happens?
locked tokens can have an active market of their own, ppl buy or sell locked coins with a discount to the market price, Consider it OTC for an allocation,
if unlocks increase supply but not demand, how does a bullish unlock happens?
locked tokens can have an active market of their own, ppl buy or sell locked coins with a discount to the market price, Consider it OTC for an allocation,
#Week_1: #Tokenomics Day 4: An introduction to token economics by @likebeckett
Tokenomics, a combination of the words token and economics, refers to the economic properties that a token possesses. It includes qualities such as supply, issuance schedule, burn functions, and more
Tokenomics, a combination of the words token and economics, refers to the economic properties that a token possesses. It includes qualities such as supply, issuance schedule, burn functions, and more
2- As bitcoin, its value proposition is highly correlated to its tokenomics, supply capped at 21M with a predictable supply schedule that decreases over time reducing inflation, Its monetary policy is solid and remained unchanged since the start, result in attractive tokenomics
3- Supply, will impact how scarce it is. By default, when a token is given a low supply it is automatically deemed as scarce and vice versa. However, While scarcity is one factor of the supply, the other is supply and demand.
First, you have the circulating supply of the token,
First, you have the circulating supply of the token,
#Week_1: #Tokenomics, Day 3: Tokenomics 103: Utility by @nateliason
"Even if a token has a great supply model, it still needs
a good reason to exist and for people to hold it."
Utility is a subsection of the demand side of the tokenomics equation.
So let’s dig into utility:
"Even if a token has a great supply model, it still needs
a good reason to exist and for people to hold it."
Utility is a subsection of the demand side of the tokenomics equation.
So let’s dig into utility:
2- We’re going to cover:
1-Spending vs Holding
2-Cash flows
3-Governance
4-Collateral
Spending vs Holding:
The first question we have to ask when looking at a token is: are you supposed to hold this token as an investment? or spend it?
For example, let’s look at @chainlink.
1-Spending vs Holding
2-Cash flows
3-Governance
4-Collateral
Spending vs Holding:
The first question we have to ask when looking at a token is: are you supposed to hold this token as an investment? or spend it?
For example, let’s look at @chainlink.
3- Chainlink is an important service in crypto. It is core infrastructure for keeping our various DAPPS running.
So buying LINK should be a good investment, right? Check out the chart against ETH: if you bought LINK after July 19 and held it, you’ve lost 50-90% against ETH
So buying LINK should be a good investment, right? Check out the chart against ETH: if you bought LINK after July 19 and held it, you’ve lost 50-90% against ETH
#Week_1: #Tokenomics, Day 2: Tokenomics 102: Digging Deeper on Supply -by @nateliason
Understanding a token’s supply, and how that supply is going to change over time, is one of the biggest factors in your ability to get a good return on investing in a project, 🧵
Understanding a token’s supply, and how that supply is going to change over time, is one of the biggest factors in your ability to get a good return on investing in a project, 🧵
2- Unless you know where and how to look, it’s easy to get the wrong impression about the supply of a project.
Even metrics like Market Cap can be misleading or manipulated in unexpected ways.
The important aspect of supply isn’t necessarily the total number of tokens, -
Even metrics like Market Cap can be misleading or manipulated in unexpected ways.
The important aspect of supply isn’t necessarily the total number of tokens, -
3- Remember the questions ?
-Where is the supply right now
-Where will it be in the future
-When will it be there
-How will it get there
Let’s start with the simple classic, Bitcoin. The current circulating supply of Bitcoin is 18,973,506 and there will only ever be 21,000,000
-Where is the supply right now
-Where will it be in the future
-When will it be there
-How will it get there
Let’s start with the simple classic, Bitcoin. The current circulating supply of Bitcoin is 18,973,506 and there will only ever be 21,000,000
#Week_1: #Tokenomics, Day 1: Tokenomics 101: The Basics of Evaluating Cryptocurrencies by @nateliason
Tokenomics is a term that describes everything about the mechanics of how the asset works,
Projects with well-designed tokenomics are much more likely to succeed, diving deep🧵
Tokenomics is a term that describes everything about the mechanics of how the asset works,
Projects with well-designed tokenomics are much more likely to succeed, diving deep🧵
2- As any economy: It All Comes Down to Supply and Demand.
starting with the supply side as easier to understand,
Supply consists of Emissions, Inflation, and Distribution, neutralize and overlook the demand or utility here, just focus on the supply side
starting with the supply side as easier to understand,
Supply consists of Emissions, Inflation, and Distribution, neutralize and overlook the demand or utility here, just focus on the supply side
3- The questions you want to ask:
How many of these tokens exist right now?
How many will ever exist?
How quickly are new ones being released?
4 examples :
1-btc: There will only be 21m Btc, Roughly 19m exist, so 2m more to be released over the next 120 years.
How many of these tokens exist right now?
How many will ever exist?
How quickly are new ones being released?
4 examples :
1-btc: There will only be 21m Btc, Roughly 19m exist, so 2m more to be released over the next 120 years.
