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Here are the 5 points of #Tokenomics to look at BEFORE investing in a protocol. 🪙
Don't invest if you haven't studied these 5 elements of Tokenomics! 🔥
Level: Beginner 🔰
Reading Time : 3 minutes 📚
THREAD 🧵
Don't invest if you haven't studied these 5 elements of Tokenomics! 🔥
Level: Beginner 🔰
Reading Time : 3 minutes 📚
THREAD 🧵
Are you curious about how the economics of a #cryptocurrency token work?
That's what we call #tokenomics, and it's super important to understand if you want to make smart investments.
So, let's talk about the key things to look at when you're analyzing a token's economics.
That's what we call #tokenomics, and it's super important to understand if you want to make smart investments.
So, let's talk about the key things to look at when you're analyzing a token's economics.
1⃣Token supply:
First up, token supply.
That's just how many tokens are out there or how many can be created. Knowing this helps you figure out the market cap and how the price might move.
More tokens can mean less value, while fewer tokens can drive up the price.
First up, token supply.
That's just how many tokens are out there or how many can be created. Knowing this helps you figure out the market cap and how the price might move.
More tokens can mean less value, while fewer tokens can drive up the price.
2⃣Distribution:
Next, check out token distribution.
Who gets the tokens and how are they divvied up?
You want a fair and decentralized distribution so one person or group doesn't have too much power.
Next, check out token distribution.
Who gets the tokens and how are they divvied up?
You want a fair and decentralized distribution so one person or group doesn't have too much power.
3⃣ Utility
Third, take a look at token utility.
What's the token for?
It could be used for payments, governance, staking, rewards, and more.
Knowing this helps you understand demand and adoption, which can impact price.
Third, take a look at token utility.
What's the token for?
It could be used for payments, governance, staking, rewards, and more.
Knowing this helps you understand demand and adoption, which can impact price.
4⃣ Issuance
Fourth, look at token issuance. How are new tokens created? Inflationary tokens can lower the value, while deflationary tokens can increase it.
Fourth, look at token issuance. How are new tokens created? Inflationary tokens can lower the value, while deflationary tokens can increase it.
5⃣Last but not least, check out token economics. This means the rules and regulations that affect the token's value and distribution. It's good to know things like inflation rates, token burns, and transaction fees so you can make informed decisions about long-term sustainability
So, there you have it, folks! The basics of tokenomics.
I will do more advanced THREADS but it is already important to understand these basics
Happy investing!
I will do more advanced THREADS but it is already important to understand these basics
Happy investing!
Mention some interesting CTs:
@DeFi_Made_Here
@Crypt0Ricard0
@dazai_0x
@crypto_linn
@0xUnbased
@cryptocrushmia
@coinwithstereo
@ardizor
@nixnox_eth
@UtilityChad
@Donnadelcrypto
@GiuoNFT
@FarmerTuHao
@ayyyeandy
@DeFi_Made_Here
@Crypt0Ricard0
@dazai_0x
@crypto_linn
@0xUnbased
@cryptocrushmia
@coinwithstereo
@ardizor
@nixnox_eth
@UtilityChad
@Donnadelcrypto
@GiuoNFT
@FarmerTuHao
@ayyyeandy
I hope you enjoyed it, don't hesitate to let me know in the comments, without forgetting to like and RT the first tweet of the thread!
Stay safe and learn 💪
#Cryptocurency #blockchain #THREADOR #staking #RealYield #DEFI
Stay safe and learn 💪
#Cryptocurency #blockchain #THREADOR #staking #RealYield #DEFI
https://twitter.com/the_smart_ape/status/1642930788608999424?s=20
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