What role does tokenomics play in successful altcoins ?

FireDAOJackie_Z

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Quote from: siniminomorocomunisakito on March 18, 2023, 05:50:41 AM

My opinion One of the key components of a successful tokenomics model is the utility of the token. Tokens must have clear use cases within a well-defined and desirable ecosystem. This can incentivize users to hold tokens, which can increase in value over time. In addition, tokens must be designed with limited supply to maintain scarcity and encourage demand.

Another important aspect of successful tokenomics is token distribution. Altcoins that have a fair and transparent token distribution model are more likely to earn the trust and support of investors. This can help build a strong and loyal community that can contribute to the growth and sustainability of altcoins.

Reasonable. And our team has never thought less about Tokenomics. If you don't mind, please refer to this thread https://bitcointalksearch.org/topic/annfiredao-social-daodidweb3-identitysbtssupereconomy-5441307 to find our white paper which contains the Tokenomics of FireDAO. Hope you'll like it and look forward to your feedback.

wheelz1200

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Quote from: FireDAOJackie_Z on March 17, 2023, 01:05:17 AM

By definition, tokenomics is the study of parameters that determine characteristics of cryptocurrencies (cryptos) or cryptographic tokens to create economic value. We have witnessed many successful altcoins over the years such as ETH. To make it simple, tokenomics are generalized and implemented in different altcoins as an economic model. What do these successful economic models have in common ? Does this play a vital role in any success proven altcoins ? Please let me know your thoughts. By the way, I am with the FireDAO team, in charge of the global community. Please contact me if you have any questions or interest. Thanks.

To me it's all smoke amd mirrors. The project itself needs to be viable first and foremost. I mean it comes into play but all these projects that inject these gimmicks is just a cover up for what they aren't really supposed to be doing. If something seems to fancy its a dead giveaway to stay clear. Limiting or expanding max supply, burn triggers, etc are meaningless.

blockman

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Of course, they do have a vital role in a project because that becomes one of the factors and basis of an investor's why we invest in it. Without such, do you think that an investor will be interested to throw money into it? I don't think that someone's gonna love to invest money with a project that don't have it. Although there are reckless investors that it won't matter to them whether they've got have or none of it because all they care about is the short term of lifespan of a project which can be seen through its hype and trend.

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Quote from: FireDAOJackie_Z on March 17, 2023, 01:05:17 AM

By definition, tokenomics is the study of parameters that determine characteristics of cryptocurrencies (cryptos) or cryptographic tokens to create economic value. We have witnessed many successful altcoins over the years such as ETH. To make it simple, tokenomics are generalized and implemented in different altcoins as an economic model. What do these successful economic models have in common ? Does this play a vital role in any success proven altcoins ? Please let me know your thoughts. By the way, I am with the FireDAO team, in charge of the global community. Please contact me if you have any questions or interest. Thanks.

Successful altcoins typically have a limited supply, a clear use case, and a strong network effect. They also incorporate tokenomics to incentivize users, allow for governance, and create economic value. These factors play a vital role in the success of proven altcoins like Ethereum. By implementing a strong economic model, altcoins can create a foundation for long-term growth and adoption. If you have any further questions or interests, please don't hesitate to reach out.

Captain Corporate

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While we are talking about tokenomics, we should remember that this is a professional job and not an amateur thing. This means that if you want to write one, or starting a new project, then hire someone to write it and that means you would have a good one. Because if you end up writing yourself and not hire someone then you will end up causing a trouble and will not make anyone interested in your project. Just hire someone and you will be doing a lot better for yourself since its much better in the end for the project too and that means it will make the people who investwd in your project to have some return for their investment as well.

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Quote from: FireDAOJackie_Z on March 17, 2023, 01:05:17 AM

Does this play a vital role in any success proven altcoins ? Please let me know your thoughts. By the way, I am with the FireDAO team, in charge of the global community. Please contact me if you have any questions or interest. Thanks.

Yes tokenomics mark one signifcant reason for its price movement. It should be as detailed as possible cause you gonna have investors looking into its break down and how the token will be used for the succeeding years. Its allocation should be described adn concise as possible and people will see how balance it is for you guys to execute a really interesting activity.

firesurfer

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Reasonable token allocation makes the value of the project stable and does not lose much of investors' money. Token allocation is also related to the project's angel investors, the backers. Allocate tokens against dumping. DEFI projects have a unique operating structure like Curve that keeps the value of CRV stable. There are many other projects, so in my opinion token metrics are very important and play a big role in the success of the project.

Yogee

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I would rank tokenomics in the middle in the order of importance. I would rather observe what the team would do after the initial hype is gone. They better show that they are willing to deliver their promises and plans despite the sharp decline in token value.

Quote from: el kaka22 on March 19, 2023, 08:44:10 AM

I think it is very important to remember this could basically make a project go away on the first days. You can have the best tokenomics as you possibly could and still not be doing well at all, but you could be doing terrible as well, because in the end just because you have a great tokenomics doesn't mean that you will be doing awesome neither.

Isn't this what many scammers do to gullible "investors" nowadays? They take advantage of the fact that one of the recommended methods in determining which project is legitimate and for long-term is by looking at their tokenomics. So they make the best presentation possible to hype the project by giving out all these great token features and economy.

Jackl87

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Quote from: FireDAOJackie_Z on March 17, 2023, 01:05:17 AM

By definition, tokenomics is the study of parameters that determine characteristics of cryptocurrencies (cryptos) or cryptographic tokens to create economic value. We have witnessed many successful altcoins over the years such as ETH. To make it simple, tokenomics are generalized and implemented in different altcoins as an economic model. What do these successful economic models have in common ? Does this play a vital role in any success proven altcoins ? Please let me know your thoughts. By the way, I am with the FireDAO team, in charge of the global community. Please contact me if you have any questions or interest. Thanks.

I think the tokenomics are one of the most important factors when you are making a decision if a project is worth investing in or not. Bad tokenomics can destroy a project even if all the other aspects of the projects are great in my opinion. For example if there were huge amount of tokens sold in the seed or private sale rounds and if those tokens are not vested long enough and were sold with a price that was way lower than the listing price, then the sell pressure of those early investors will be extremely high and the token will have a very hard time to keep a stable price or even increase it's price. Also if the allocation for the team is higher than 15% then this is also already a red flag for me.

el kaka22

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I think it is very important to remember this could basically make a project go away on the first days. You can have the best tokenomics as you possibly could and still not be doing well at all, but you could be doing terrible as well, because in the end just because you have a great tokenomics doesn't mean that you will be doing awesome neither.

However, if you have a terrible tokenomics then it is 100% guaranteed that nobody will ever care about you and that project will die. So that means you need to have a proper tokenomics, even if it means that you will not be doing well, it still means that you are not doing terrible right from the start.

siniminomorocomunisakito

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My opinion One of the key components of a successful tokenomics model is the utility of the token. Tokens must have clear use cases within a well-defined and desirable ecosystem. This can incentivize users to hold tokens, which can increase in value over time. In addition, tokens must be designed with limited supply to maintain scarcity and encourage demand.

Another important aspect of successful tokenomics is token distribution. Altcoins that have a fair and transparent token distribution model are more likely to earn the trust and support of investors. This can help build a strong and loyal community that can contribute to the growth and sustainability of altcoins.

pgbit

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Quote from: FireDAOJackie_Z on March 17, 2023, 01:05:17 AM

By definition, tokenomics is the study of parameters that determine characteristics of cryptocurrencies (cryptos) or cryptographic tokens to create economic value. We have witnessed many successful altcoins over the years such as ETH. To make it simple, tokenomics are generalized and implemented in different altcoins as an economic model. What do these successful economic models have in common ? Does this play a vital role in any success proven altcoins ? Please let me know your thoughts. By the way, I am with the FireDAO team, in charge of the global community. Please contact me if you have any questions or interest. Thanks.

Tokenomics plays a big role in success of altcoin as it defines token utility, influences its price, incentivizes holders, and attracts investors. Well-designed tokenomics models ensure stability, transparency, and long-term value, impacting factors such as supply, demand, and ecosystem participation.

disconnectme

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Tokenomics is very key to the success of a project and if you picked the wrong one the project may be doomed for life, the quality of the team, the concept of the project, and Seed funding/IDO, I think tokenomics is the next. A lot of good projects did not make it because the team messed up their tokenomics which later resulted in the burning of their tokens to appease investors and everything in this space is perceptions. I believe one of the things that hindered the success of Algora blockchain is their tokenomics, because most people I spoke to and what I read say the tech is up there with the best. So don't mess up your tokenomics because of greed from the developers that want to get paid in full from the start.

FireDAOJackie_Z

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Quote from: bussybuddy on March 17, 2023, 01:19:38 AM

Quote from: FireDAOJackie_Z on March 17, 2023, 01:05:17 AM

By definition, tokenomics is the study of parameters that determine characteristics of cryptocurrencies (cryptos) or cryptographic tokens to create economic value. We have witnessed many successful altcoins over the years such as ETH. To make it simple, tokenomics are generalized and implemented in different altcoins as an economic model. What do these successful economic models have in common ? Does this play a vital role in any success proven altcoins ? Please let me know your thoughts. By the way, I am with the FireDAO team, in charge of the global community. Please contact me if you have any questions or interest. Thanks.

Ethereum is an open source, public, distributed computing platform based on Blockchain technology. It features a smart contract (Smart Contract), which facilitates online contract agreements. The block reward works continuously for efficient token distribution. The project released more than 7,000,000 Ether units during its ICO in 2014 to begin widespread adoption. As of now, there is no limit to Ether. This means that the supply of this Token can continue to expand as the system grows. However, no one can be sure how Ethereum Tokenomics will change when the system moves to PoS.
As projects that create microeconomies, to be able to sustain and grow further, they need to figure out how tokens should work in the ecosystem through Tokenomics. This action can create a dynamic platform that still has to be developed in a stable way.

The key point is how to make tokens work and sustain in the ecosystem. ETH, as you mentioned, is quite a typical example. What ETH has achieved is proven success and it initiated an era of the framework of how cryptos work based on blockchain technology. The unlimited Ether units is an issue especially when the system moves PoS. How tokenomics still works fine afterwards affects all users and investors' confidence. I guess so far everything is good. Although there are many side chains or ecosystems coming these days, a lot of models, patterns or ideas are still copied from Ethereum. Looks like the big names are influential in every aspect.

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Quote from: FireDAOJackie_Z on March 17, 2023, 01:05:17 AM

By definition, tokenomics is the study of parameters that determine characteristics of cryptocurrencies (cryptos) or cryptographic tokens to create economic value. We have witnessed many successful altcoins over the years such as ETH. To make it simple, tokenomics are generalized and implemented in different altcoins as an economic model. What do these successful economic models have in common ? Does this play a vital role in any success proven altcoins ? Please let me know your thoughts. By the way, I am with the FireDAO team, in charge of the global community. Please contact me if you have any questions or interest. Thanks.

Ethereum is an open source, public, distributed computing platform based on Blockchain technology. It features a smart contract (Smart Contract), which facilitates online contract agreements. The block reward works continuously for efficient token distribution. The project released more than 7,000,000 Ether units during its ICO in 2014 to begin widespread adoption. As of now, there is no limit to Ether. This means that the supply of this Token can continue to expand as the system grows. However, no one can be sure how Ethereum Tokenomics will change when the system moves to PoS.
As projects that create microeconomies, to be able to sustain and grow further, they need to figure out how tokens should work in the ecosystem through Tokenomics. This action can create a dynamic platform that still has to be developed in a stable way.

FireDAOJackie_Z

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By definition, tokenomics is the study of parameters that determine characteristics of cryptocurrencies (cryptos) or cryptographic tokens to create economic value. We have witnessed many successful altcoins over the years such as ETH. To make it simple, tokenomics are generalized and implemented in different altcoins as an economic model. What do these successful economic models have in common ? Does this play a vital role in any success proven altcoins ? Please let me know your thoughts. By the way, I am with the FireDAO team, in charge of the global community. Please contact me if you have any questions or interest. Thanks.

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