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Tokenomics

What does Tokenomics mean in crypto terms?

Tokenomics is a term that combines 'token' and 'economics' and refers to the study of the economic models surrounding blockchain-based tokens. It encompasses the design, distribution, and utility of a token within its respective ecosystem. Tokenomics outlines how a token will be distributed, how it can be used, its supply mechanism, and how it is expected to hold or gain value. Well-designed tokenomics are crucial for the success of a cryptocurrency project, as they influence the incentives for stakeholders, the token's utility, and its demand and supply dynamics.

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