What is tokenism

Tokenomics means analyzing a project, its founding team, and growth prospects. 

The term "tokenomics" covers a wide range of factors that affect the value of a cryptocurrency. Here are some of these factors. 

Supply of tokens

Not all tokens have a maximum supply. For example, the supply of tokens in the Ethereum network increases every year.

The number of tokens in circulation shows how many coins are currently available. 

How to use a token

The purpose of tokens can be different. Some of them are used for project management, others can be securities or are intended to perform protocol operations. There are some that are backed by fiat assets. 

Token distribution 

Fair launch and distribution means that early access to tokens is excluded. It is opposed to preemption. In this case, a part of the tokens is distributed to a selected group before the launch.

Removing tokens from circulation is called cryptocurrency burning.

Tokenomics is a tool for analyzing the prospects of a project, which allows you to understand the level of user interest in it. Since tokens have no agreed value, the situation is constantly changing. And it is directly influenced by the owners of the coins. Sustainable long-term development is not possible for all tokens.

Burning

Burning is a reduction in the supply of tokens that makes them more valuable.

Tokenomics is not so much about math and statistics as it is about the psychology of behavior. In some ways, it resembles a cryptocurrency business plan. Characteristics such as liquidity and value will always depend on demand. The development of tokenomics gives the token economic meaning. This service is useful for:

• businessmen;
• startups. 

It is difficult to hope for the success of a token if there are no incentives for its accumulation. It is necessary to choose digital assets according to an investment plan that you or a consultant have developed in advance. Issue periods and profitability are taken into account. Over time, tokens become an increasingly predictable tool for investors. They learn to understand the tokenomics of the project and make predictions about the prospects of a particular token. Sometimes, after meeting with a white paper, it becomes immediately clear that the investment is a high-risk one.

Those who are just taking their first steps need support. Cryptocurrency consultants will help you improve your understanding of the supply and demand for tokens, study all their attributes and indicators, and compile a detailed report.