But still, 99% of people choose to ignore it.

This simple guide will teach you to read tokenomics like a pro 🧵

Tokenomics is more than just token distribution. It includes the whole economic model of the project.

There are 5 main parts to analyze in every tokenomics:

1. Allocation and Distribution
2. Supply
3. Token Model
4. Token Incentives
5. Consensus Mechanism 1/➣ Allocation and distribution

It contains information about who will receive the tokens and how they will reach the market.

The $UNI tokenomics is considered an exemplary one, most of the tokens went to the community and the entire supply has been distributed over 4 years.

➣ Most projects distribute tokens either through a fair launch or pre-mine.

Fair launch: tokens are mined and governed by the community.

Pre-mine: tokens are created and distributed before public launch to raise capital. Most of the crypto projects come with pre-mined tokens. 
2/➣ Token supply

It refers to the total number of tokens in a project and its future changes.

- Circulating supply refers to the number of tokens that are currently in circulation.

- Total supply refers to the total quantity of existing tokens either in circulation or stuck at different smart contracts and released later

- Maximum supply refers to the total quantity of tokens in a project that will exist once the maximum supply has been reached.

➣ A huge difference between market cap and total supply results in an issue called "low float high FDV" - a common one lately.

The idea is simple - a high valuation from the start will hurt the project's development because of constant selling pressure from unlocks.

3/➣ Token Model

This part refers to one main question
- Is the coin inflationary or deflationary?

Let's analyze every part:

➣ The inflationary model

An inflationary model has no maximum supply limit and continues indefinitely.

Pro: Encourages network participation and growth.

Con: Leads to inflation and devaluation, diluting the existing token value.

➣ Deflationary model

This model caps token supply and may periodically burn tokens.

Pros: It creates natural demand and avoids inflation.

Cons: It may encourage hoarding, hinder new investors, and reduce token value.

An example of this is @injective $INJ.

4/➣ Token Incentives

Users should have the motivation not only to join the project but to buy a few tokens early, stay there, and continue to invest their money and time in it.

It could be done through:

- Profit sharing
- Staking pools ➣ Profit-sharing

Allow token holders to benefit from holding their tokens by distributing rewards. These can be airdrops, fee reflections, or other discretional token distribution events.

➣ Staking

Token holders can stake their tokens to earn rewards by acting as validators in the network. Various use cases for the staking mechanism include:

- Holding tokens
- Activity levels
- Platform features
- Participant status

5/➣ Consensus Mechanism

A Consensus mechanism or protocol allows distributed systems to work together and stay secure. These mechanisms conceal a great deal of the logic utilized behind a blockchain.

There are 2 main consensus mechanisms:
- Proof-of-Work
- Proof-of-Stake ➣ Proof-of-Work

In this protocol, blockchain miners race to solve math puzzles and create new blocks. The fastest miner earns a new token.

The block is then shared for transactions or smart contracts. This process uses a lot of energy and miners hold the decision power.

➣ Proof-of-Stake

In PoS, network integrity is upheld by nodes holding tokens, making it more cost-effective than PoW.

It encourages long-term token holding to gain more power.

That's it for today folks,
Thanks for reading! For more insightful crypto content,
Follow Me @Crypto PM
Stay updated with the latest trends and analyses in the crypto world!

CONTENT SOURCE: RESPECTED Defi_Warhol on X

I have completed my Notion study, friends. It has been one of my biggest studies so far. In this study, you can find the usage areas, income models, and critical lock opening dates of the projects.
🖌️ If you ask which category you have reviewed, there is a breakdown visual below. I will increase the number of projects on the list over time.
🖊️ Why is Tokenomi important: The study below shows the tokenomi effect. According to the review conducted with 5000 projects, lock openings over 1% directly affect the token price.
✏️ So, is the review over and done? No, you can also find the display of lock openings as sales pressure in an excel table.
✨ I will make this excel even better with metrics such as active user count and TVL. In the medium term, I want to establish a platform where Token Unlocks + DefiLlama + Token Terminal + Artemis data come together in one place and give us signals.
🔹 I know that many people have lost money recently due to unlocking altcoins. For this reason, I kindly ask you to share this content so that it reaches more people. I will also ask the big accounts that see tokenomics as important.
🔸 I will also state the links in the comments section. You can reach it from there as well. If there are any places you see as incorrect or missing, please indicate, I will correct it at the first opportunity.
#tokenomics #CryptoResearch #TokenUpdate

$ETH
Ether is purely digital and can be sent instantly to anyone in the world. The supply of Ether is not controlled by any government or corporation: it is decentralized and totally transparent. Ether is issued precisely according to protocol, and only to the stakers who secure the network.What about Ethereum's energy consumption?
On September 15, 2022, Ethereum completed the La Fusion upgrade, moving Ethereum from proof-of-work to proof-of-stake.

La Fusion was Ethereum's biggest upgrade and reduced the energy consumption needed to secure Ethereum by 99.5%, creating a more secure network at a significantly reduced carbon cost. Ethereum is now a low-carbon blockchain with enhanced security and scalability. What's the difference between Ethereum and Bitcoin?
Launched in 2015, Ethereum builds on the innovation offered by Bitcoin, from which it differs in some key respects.

Both technologies allow you to use digital money without payment providers or banks. But Ethereum is programmable, so you can also build and deploy decentralized applications on its network.

Bitcoin lets us send each other basic messages about what we think is valuable. Establishing value without authority is already powerful. Ethereum extends this principle: rather than simple messages, you can write any general program or contract. There is no limit to the type of contracts that can be created and accepted, hence the great innovations achieved on the Ethereum network.

Whereas Bitcoin is just a payment network, Ethereum is more like a marketplace for financial services, games, social networks and other applications.
A divisible currency
ETH can be divided up to 18 decimal places, so you don't need to buy a whole ETH. You can buy just a fraction - even down to 0.000000000000000001 ETH if you like.

Why is ETH unique?
There are many cryptocurrencies and many other tokens on Ethereum, but there are certain things that only ETH can do. ETH powers and secures Ethereum
ETH is the lifeblood of Ethereum. When you send ETH or use an Ethereum application, you pay a fee in ETH to use the Ethereum network. This fee encourages a block producer to process and verify what you're trying to do.

Validators are like the keepers of Ethereum's ledgers: they check and prove that no one is cheating, and do the work to earn the right to offer a block of transactions. Miners who do this work are also rewarded with small amounts of newly-issued ETH.

The work of the validators, and the capital they put at stake, makes Ethereum secure and eliminates the need for centralized control. ETH feeds Ethereum.

When you stake your ETH, you help secure Ethereum and earn rewards. In this system, the threat of losing ETH deters attackers. ETH underpins Ethereum's financial system
Not satisfied with payments, the Ethereum community is building a complete financial system that works over P2P and is accessible to all.

You can use ETH as collateral to generate entirely different cryptocurrency tokens on Ethereum. What's more, you can borrow, lend and earn interest on ETH and other ETH-backed tokens. here are new uses for ETH every day
#Ethereum
#tokenomics

🔴 Warning Signs Everywhere 🔴

$DOGS is teetering on the edge, now trading at **$0.0011077** and down **1.29%**—this could be just the calm before a storm! With **CEXs holding massive $DOGS reserves and no lockup period**, a dangerous **pump-and-dump** scheme could be imminent. 💣

**Are We Facing a Market Manipulation Tsunami?** 🌊📉

Picture this: **CEXs spark a buying frenzy**, sending $DOGS skyrocketing. But as soon as the price peaks, they **unleash the dump**, crashing the market and leaving retail investors with heavy losses. **This isn’t just a possibility—it’s a looming threat!** 💥

**LeonidasNFT Sounds the Alarm** 📢

**LeonidasNFT** warns of tokens with concentrated ownership and unclear selling strategies. **The risk of manipulation is high**—only transparency can shield you from disaster! 🚨🛑

$DOGS might be a ticking time bomb. **Are you ready?** Stay vigilant, demand transparency, and avoid getting caught in the blast. 🚀🔥

**What do you think? Is $DOGS about to implode?** 👇💬

#dogs #CryptoWarning #pumpanddump #MarketAlert t #tokenomics

🔴 Critical Danger Signs 🔴

The $DOGS token is in a perilous state, currently trading at $0.0011077 and slipping 1.29%. This could signal an impending crisis! CEXs are holding vast amounts of $DOGS tokens **without any lockup period**, raising serious concerns about a potential **pump-and-dump** scheme. 💣

**Is a Price Manipulation Storm Brewing?** 🌪️📉

Picture this: **CEXs spark a buying spree**, driving $DOGS prices through the roof. Then, at the perfect moment, they **trigger a massive sell-off**, crashing the market and leaving retail investors in the wreckage. This isn’t just a theory—it’s a looming threat! 💥

**LeonidasNFT Issues a Dire Warning** 📢

**LeonidasNFT** has sounded the alarm: be cautious of tokens with heavy centralized ownership and unclear selling strategies. **The risk of manipulation is astronomical**—transparency is your best defense against potential disaster! 🚨🛑

The DOGStoken could be on the brink of a major downfall. **Are you ready for the impact?** Stay vigilant, demand transparency, and safeguard yourself from the fallout. 🚀🔥

**What’s your take? Is dogs heading for a collapse?** 👇💬

#DOGS #CryptoWarning #pumpanddump #MarketAlert #tokenomics

🔴 Warning Signs Everywhere 🔴

$DOGS is hanging by a thread, now trading at **$0.0011077** and dipping **1.29%**—this could be the calm before a storm! CEXs are sitting on a mountain of $DOGS tokens with **no lockup period**, and the threat of a devastating **pump-and-dump** is looming large. 💣

**Are We Facing a Price Manipulation Tsunami?** 🌊📉

Imagine this: **CEXs ignite a buying frenzy**, shooting the $DOGS price sky-high. But when the time is right, they **unleash the dump**, crashing the market and leaving retail investors buried in losses. **This isn’t just a possibility—it’s a real and present danger!** 💥

**LeonidasNFT Issues a Stark Warning** 📢

**LeonidasNFT** has thrown down the gauntlet: beware of tokens with concentrated ownership and opaque selling plans. **The risk of manipulation is sky-high**—and only transparency can save you from the fallout! 🚨🛑

The $DOGS token could be a ticking time bomb, ready to explode. **Are you prepared?** Stay sharp, demand clarity, and don’t let yourself be caught in the blast. 🚀🔥

**Share your thoughts! Is $DOGS about to implode?** 👇💬

#dogs #CryptoWarning #pumpanddump #MarketAlert #tokenomics

The $DOGS token is facing some serious scrutiny! 📉 With no lockup period and a significant portion of the supply held by centralized exchanges (CEXs), the risk of market manipulation is high.

Here's the lowdown:
- 🏷️ $DOGS at 0.0011077 (-1.29%)
- ⚠️ CEXs could create artificial buying frenzies, only to dump their holdings later, causing dramatic price crashes. 💥
- 📢 Recent tweets, like from LeonidasNFT, are raising red flags about potential "pump-and-dump" schemes.

Investors, beware! The lack of transparency and clear tokenomics can lead to massive losses if these manipulative practices take hold. Stay informed and cautious! 👀

What’s your take on this risky situation? Share your thoughts below! 👇🔥

#dogs #CryptoRisks #CryptoMarketMoves #CEXs #tokenomics

Whether you are a seasoned cryptocurrency investor or a newbie in the space, you might have stumbled upon the term “Tokenomics.” If you are confused with the term and what it means, let us break it down for a simple understanding.The term “tokenomics” describes the economics of a token or cryptocurrency. It is the examination of the production, transfer, and use of tokens in a particular cryptocurrency project.Tokenomics in a nutshellThere are various aspects to look into before pouring funds into any cryptocurrency project. The whitepaper, the team behind it, the community, and the roadmap are all examples of this. However, another crucial component to look into is tokenomics.Tokenomics stands as a crucial element that helps determine the future potential of the project. Since it determines the token’s value and utility within the network and has the potential to affect both the network’s and the token’s success, tokenomics is a crucial component of cryptocurrencies.What are the key elements of tokenomics?It covers a broad range of ideas, such as: token supply, token price, token economics, token utility, token incentives, and more. To put it plainly, tokenomics describes how a specific token is developed, distributed, and used. It also involves what rewards are offered to encourage holders to keep the token.Token supplyDemand and supply are two critical factors affecting not only cryptocurrencies, but all goods in general. When it comes to supply, it encompasses maximum supply and circulating supply.There are over 22,491 cryptocurrencies at present, according to data from CoinMarketCap. All these coins have different supplies. Some of them don’t have a maximum supply, whereas some of them have a limited supply.Token utilityThe utility is nothing but the use case of a particular token. Different tokens serve different purposes. Take, for example, BNB, which is the power source for the BNB chain and is also utilized for paying transaction fees.Some other coins, including stablecoins, serve the purpose of maintaining the peg with their respective currencies.Token distributionThe process of distributing tokens is a crucial component of a token’s tokenomics and has a big impact on the project’s success. Initial Exchange Offerings (IEOs), Initial Coin Offerings (ICOs), and airdrops are just a few ways to distribute tokens.Final thoughtsUnderstanding tokenomics and the various factors that it encompasses is crucial for various reasons. Tokenomics data helps investors understand elements including supply, distribution, use cases, and other factors.Investors should also be mindful of the fact that a single criterion doesn’t help to draw conclusions about a particular token or project. Tokenomics, combined with other factors, can help investors make informed decisions.#tokenomics #dyor

How To Use ChatGPT for Crypto Research ❓

#ChatGPT is a powerful AI chatbot that can be used for crypto research. It can help simplify your understanding of complex #crypto terms you might not be familiar with.

💲 ChatGPT is an efficient AI language chatbot that can be used for many purposes, including research and education.

💲You can use informational, instructional, opinion-based, and role-play prompts to aid you in your research.

💲Used correctly, ChatGPT can help you simplify complex terms, Review whitepapers, analyze #tokenomics and the background of founders, and plan a detailed #crypto study plan.

💲 While #ChatGPT is a great tool to help your research, it is important to supplement your findings with up-to-date information from reputable sources.

👇FOLLOW For More👇       

#chatgpt