It has become clear over the last year that cryptocurrencies can do so much more than replace existing currencies. They can be used to tokenize assets, give access to dapps, represent ownership, make holders become active participants of decentralized networks, among many other uses.
Due to this, digital tokens are creating entirely new economic models which we refer to as token economics.
Because of its novelty, token economics can be incredibly difficult. Cryptocurrencies are often used for multiple features on their related blockchain platform, and each cryptocurrency, or token, is programmed in its own unique way.
Understanding the token economics behind cryptocurrencies can assist you with determining which projects are solid, high potential investments and which are not. These models can make or break a cryptocurrency and its related platform.
In this article, we will go through the…