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Kelvin
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Day 5 of Contribute DAO Why tokenomics is really important: Good tokenomics: +10,000% in one year. Bad tokenomics: -90% in one year. When evaluating a potential investment, on the page of a token you see this: MC: value of circulating supply in dollars FDV: value of total supply in dollars Circulating Supply: tokens currently in circulation Total Supply: total possible existing tokens
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3/ In general, four factors drive demand for tokens: 1. Community Support As observed in recent cycles, a strong community can significantly drive demand. Memecoins, for instance, have surged in value solely due to community. 2. Store of Value Many people purchase cryptocurrencies to store their wealth, much like investing into digital gold. Bitcoin is a prime example of this. 3. Utility of a Token Tokens that offer utility tend to attract buyers. A straightforward example is staking, where holding a token provides specific benefits. 4. Value Generation People seek tokens that offer real value. Staking allows users to lock their tokens and earn rewards at regular intervals, which also benefits the network. Additionally, holding tokens can lead to rewards, airdrops, and other incentives from projects, benefiting all parties involved.
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