1. Increase in Awareness: When there is an increase in awareness of the project, the demand can increase.
2. Increase in Utility: When there is an increase in utility in the project, the demand can increase.
Keep in mind: The core demand driver for a token is always the value creation of the project.
If this is not the case, the token price will flame out faster than you'd expect.
Tokens have MANY benefits for founders and investors. But please remember, the token itself is NEVER the driver of value.
A token acts as a MULTIPLIER of the value that the products or services create. That means, if value creation is near 0, the token cannot multiply anything.
Modeling demand for tokens is the hardest part of tokenomics.
There are very few models, and so far, none have accurately predicted the future.
We have created our own tokenomics calculation template to model different demand drivers.
The tokenomics calculation template is included in our "Intro to Tokenomics" course.
This course is the FASTEST way to learn the basics of tokenomics.
#Sui is a low-latency, high-throughput permissionless L1 whose instant transaction finality makes it a prime candidate for on-chain use cases like #DeFi and #GameFi.
It focuses on horizontal scaling enabling parallel unrelated transaction processing
Is @LiquityProtocol The holy grail of decentralized, resilient stablecoins in DeFi, and perhaps even the MakerDAO killer?
Following $USDC's depeg, $LUSD has been the biggest stablecoin winner in terms of market cap percentage gain.
Here's how it works🧵by @imajinl
Liquity is a decentralized stablecoin issuer that allows users to open collateralized debt positions (CDPs) by minting $LUSD stablecoins against their $ETH collateral, arguably one of the most pristine collaterals in crypto
Let's get into the details.
First, let me introduce you to troves, the core of the Liquity protocol.
The diagram below is a high-level overview of how troves work.
Think of troves as Liquity’s equivalent of MakerDAO’s vaults, but with a few nuances.
$DOT is used for payment of the transaction fees. Users can stake their $DOT and secure the network while enjoying staking rewards. Moreover, holders can participate in governance and parachain slot auctions.
🙌Demand Drivers
There are multiple demand drivers, such as payment of transaction fees, on-chain governance, parachain slot auctions, and staking yields.