What Is a Token Economy?-banner-imageAcademy

What Is a Token Economy?

The token economy of a project shows us how the project's token will be used and managed. For this reason, it is planned according to the characteristics and purpose of the project.

A token economy is focused on the issuance, distribution, use cases, and circulation of a project's token. The business model, token supply, and token burns should be taken into account when designing it. An incentive mechanism should be established for the users, investors, and contributors. A clear roadmap showing how the token will be used in the project and the resources allocated to technology, marketing, airdrops, etc. should also be provided. The goal should be to create a transparent, fair, and trustworthy ecosystem, which is vital for the success of a blockchain-based project.