Utility mining is a mechanism or process in which participants engage in protocol-specified on-chain activity and are rewarded with tokens for doing so. Protocols can utilize utility mining to distribute their native or governance #tokens to end-users and attract new users to their protocols, helping bootstrap themselves as well as mitigating the risks of mercenary capital. This process incentivizes users to interact with the underlying protocol to receive additional yields.

One of the risks of such a system is the potential for Sybil attacks, as yield is distributed on the basis of activity. One solution to this is leveraging the Transfer Rewards Function (TRF), allowing utility mining to sustainably distribute tokens in a probabilistic mechanism (the fact that rewards are distributed in tiers) each time any user performs an on-chain transaction. TRF is a custom mathematical function that distributes rewards through the use of assets. It takes into account the size of the reward pool and the transaction amount.

These rewards are distributed in tandem with other rewards, granting each network participant equal opportunities to generate large amounts of yield, whether they are sending or receiving these assets. For example, AMM A decides to distribute a portion of its tokens ($AMM) through utility mining. This may incentivize rational users of, for example, AMM B to use AMM A for a period of time to maximize their yield.

A user using AMM A will potentially be able to get exposure to AMM A tokens ($AMM) every time they make a trade, maximizing their expected outcome. However, to claim this yield, the user has to learn and understand how to use AMM A and be actively engaged in deriving utility out of it. The user may also be contributing towards its revenue for the services provided.
Once the yield towards the end of the utility mining initiative is reduced, the user may choose to remain a long-term user of AMM A, as they were able to derive value out of it and potentially keep using it for its value proposition.
#BinanceMegadropSolv

deep dive into the digital assets that have shaped the future of finance
Back in the day, we traded stocks, bonds, and commodities. But the world has changed, and so has the way we invest. Today, we're talking about digital assets: coins and tokens.
What's the Difference?
Let's start with the basics.
📍Coins: Think of coins as the foundational currencies of their respective blockchains. They're like the dollars and euros of the crypto world. They have their own blockchain, a digital ledger that records all transactions. Bitcoin and Ethereum are prime examples.
📍Tokens: Tokens, on the other hand, are built on existing blockchains. They're like the apps on your smartphone, running on the operating system (the blockchain) but with their own unique functions. They can represent anything from in-game currency to shares in a company.
Why Does it Matter?
Understanding the difference between coins and tokens is crucial for several reasons:
👉Risk Profile:
Coins: Generally, coins are more stable, especially those with a strong track record like Bitcoin. They're often seen as a store of value.
Tokens: Tokens, being tied to specific projects, can be more volatile. Their value fluctuates based on the success or failure of the underlying project.
* Use Cases:
* Coins: Primarily used as a medium of exchange and a store of value.
* Tokens: Have a wider range of applications, including:
* Utility Tokens: Used to access specific services or products within a platform.
* Security Tokens: Represent ownership in a real-world asset, like real estate or stocks.
* Governance Tokens: Give holders voting rights in the decision-making process of a project.
* Investment Potential:
* Both coins and tokens offer significant investment potential. However, due to their different risk profiles, it's essential to conduct thorough research before investing.
A Word of Caution
The crypto market is highly volatile. What was a hot token yesterday could be worthless tomorrow. Always do your own research (DYOR), and never invest more than you can afford to lose.
The Future of Finance
As a seasoned trader, I've witnessed the transformative power of technology. Blockchain, the technology underpinning cryptocurrencies, has the potential to revolutionize industries from finance to supply chain management.
Coins and tokens are just the beginning. The future of finance is decentralized, and it's exciting to be a part of it.
So, what do you think? Let me know your thoughts in the comments below
#Cryptocurrency
#bitcoin
#Ethereum #tokens #BlockchainTechnology

In May, cryptocurrencies worth $3.66 billion will be unlocked.

Renowned cryptocurrency market analyst Colin Wu discussed token unlocks in May 2024. According to TokenUnlocks, "major unlocks" exceeding $10 million will occur for more than 20 prominent cryptocurrency projects, including $DYDX , $ENA , $SUI , MEME, GAL, MAVIA, APT, STRK, AEVO, ARB, APE, IMX, ROSE, PIXEL, PYTH, AVAX, ID, YGG, OP, PRIME, and others.

Next month, cryptocurrencies worth over $3.66 billion at the current exchange rate will be unlocked. It's worth noting that the value of the new AEVO and PYTH tokens will exceed $1 billion. The first procedure will take place on May 15, while a similar unlock for the 2nd digital currency will occur on the 20th. Additionally, on May 22, AVAX tokens worth over $332 million will enter circulation.

Token unlocking and vesting are mechanisms used for the gradual release or thawing of digital assets over a specific period. It's a practice that controls the availability and distribution of cryptocurrencies to owners or the project team.

During token unlocking, a certain portion of assets becomes available for use or sale over specific time periods. This approach helps prevent mass sell-offs, which could significantly impact the market and token demand.

Vesting may also be associated with various conditions such as time, achievement of specific goals, level of involvement, and other factors. It's often applied to tokens received by project teams or consultants as a reward for their contributions and participation in startup development. This helps ensure long-term interest and motivation among participants. These mechanisms are used to control and manage token distribution, balancing the interests of all parties and ensuring market stability.

#cryptocurrency #tokens #Unlocking #analysis▶️

The volume of searches on Google for the word “#Bitcoin❗ $BTC
” reached an annual low last week. Google scores search queries on a scale from 0 to 100, depending on the importance of the topic in the total number of queries for all topics. On a scale of 0 to 100, the interest of users from around the world in the first cryptocurrency dropped to 33 points by the end of the week.

At the same time, the volume of search queries for the word “#Memecoins🤑🤑 ” amounted to 77 out of 100 during the same period, but has yet to surpass the previous historical high of 100 points reached at the end of October 2023.

#CryptoQuant CEO and founder Ki Young Ju believes that the number of searches for memcoins will return to the previous all-time high by the end of October 2024, as interest in these digital assets remains extremely high.

Memcoins have exceeded expectations in 2024 and show no signs of beginning to slow down in popularity before the end of the year. Since September 12, 2024, 491,000 new tokens have been created on the Solana$SOL
network.

On Oct. 9, the Solana Floor account reported that nearly 20,000 new #tokens had been launched on Solana in the previous 24 hours, with the majority being memcoins.

The news outlet also noted that by October 12, the total market capitalization of memcoins on Solana exceeded $10 billion, with trading volume of approximately $2.3 billion in 24 hours.

Platforms like Pump.Fun have fueled the hype around memcoins on Solana thanks to a simplified user interface, low transaction fees and access to fast liquidity on decentralized exchanges like Raydium, allowing virtually anyone to issue new tokens.

Earlier in 2024, industry executive Justin Sun announced the launch of SunPump, a memcoin creation platform on the Tron$TRX
network, similar to the Pump.Fun platform on Solana. According to Dune, 90,000 memcoins have been created on the SunPump platform since its launch in August.

Memcoins have been repeatedly criticized by investors, industry executives and business tycoons. Investor Mark Cuban recently stated that he believes “every memcoin is a prepared fraud” and warned the public against trading these highly speculative assets. The rapid growth of new tokens on various blockchain platforms may indicate growing interest, but it also increases the likelihood of questionable projects.
#MemeCoinTrending