Picture this: You're playing your favorite video game and you need gold coins to buy a new epic suit of armor. To get them, you complete quests, defeat monsters, and participate in special events. That virtual economy, with its own rules and rewards, is a microcosm of what's happening in the world of cryptocurrencies.
Welcome to the world of tokenomics!
What is tokenomics?
Simply put, tokenomics is the economics of a cryptocurrency. It is the set of rules that govern how a cryptocurrency is created, distributed, and used. Just like a video game has an internal economy, each cryptocurrency has its own system of incentives and restrictions.