The Amazing Roles of Community in Tokenomics and Governance of A Coin
In every cryptocurrency project out there, community plays a vital role in its tokenomics and governance. In this post, we are going to look at some of these roles of community.
1. Initial Distribution: In most projects, their initial token distribution is often offered to their community, whether it's an ICO, an IEO, or an airdrop. Community performance in this early stage often determines the project's survival path.
2. Market Dynamics: Community actions influence supply and demand, affecting the token's price and overall tokenomics. Is the community actively buying, selling, or holding?
3. Decision Making: For projects with governance mechanisms, the community makes decisions about the future direction of the project by influencing protocol changes and voting for beneficial proposals.
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