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

Founder of contribute-dao | Cofounder of Toaster Finance | 
DeFi & Healthcare | 
Trying to ask better questions

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.