Tokenomics / The Core of Every Crypto Project [ Animation ]
Cryptomatics
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In today’s video, we will take a look at tokenomics, the make it or break it factor on every crypto project.
By the end of this video you will understand what Tokenomics means, how does it influence the success of a project and its entire economy.
So what is Tokenomics? Stay with us until the end and you will understand everything about it!.
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The main topics of the video are:
▶ What Is Tokenomics ▶ Tokenomics - Allocation and Distribution ▶ Token supply ▶ Market Cap ▶ The Token Model ▶ Conclusions
🟡 What Is Tokenomics
“Tokenomics” is a relatively recent term based on the words Token and Economics. It refers to how the economy around a crypto token is imagined.
Taking into consideration the fact that, in general, tokens are very different among themselves, in order to make comparisons between them it is useful if we have a frame through which to better understand their functionality and utility.
🟡 Tokenomics - Allocation and Distribution
The allocation and distribution of tokens is usually a strategic decision which can be found in the project’s whitepaper as a pie chart that contains info regarding who will receive the tokens and how they will reach the market.
Generally speaking, there are two ways through which the majority of projects choose to distribute their tokens: via a fair launch or through a method known as pre-mined.
🟡 Token supply
Token Supply generally refers to the quantity of tokens available in a certain project and how that number will change in the future.
In particular cases we can reference several types of existing Token Supply, such as Circulating Supply which represents the quantity of tokens existing in circulation currently and that can be traded.
Total Supply refers to the total quantity of existing tokens that are either in circulation or stuck in different smart contracts and released at a later date as part of events such as ICOs ori various airdrops.
🟡 Market Cap
In the blockchain industry, market capitalization or market cap refers to the total value of tokens in circulation at any given moment.
This is calculated by multiplying the total volume of tokens in circulation with the current price of said token.
For example, if a token currently has a value of $10 and there are 1,000,000 tokens in circulation, its market cap will be worth $10,000,000.
🟡 The Token Model
When it comes to the token model, we have to make sure if said token is the i
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2022-04-06
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