Tokenomics refers to the economic model behind a cryptocurrency's supply and distribution. This article dives into how token supply affects price and why it’s crucial for investors to understand.
What Is Tokenomics?: Define tokenomics as the study of a crypto token’s supply, inflation rate, and distribution mechanisms. It determines how tokens are created, released, and how scarcity impacts value.
Inflationary vs. Deflationary Models: Discuss the difference between inflationary tokens (e.g., Dogecoin) and deflationary tokens (e.g., Bitcoin) and how their supply models influence price.
How Tokenomics Impacts Investment: Explain how a coin’s supply model can make it more or less appealing to investors, highlighting the importance of max supply, circulating supply, and burning mechanisms.
