Introduction to Tokenomics

In a cryptonetwork, token holders would also be unwilling to supply capital at a loss indefinitely if the token’s only value is derived from its ability to generate profits in the future. However, this gets into the unique properties and value capture mechanisms of crypto – tokens may have value capture outside of their ability to produce income.

Token supply: Protocol tokens vary in their token supply strategies. Bitcoin’s token supply is regulated in the protocol and limited to 21 million. The Ethereum network had a very different token supply embedded in their protocol, and changed the supply strategy when they transitioned from Proof-of-Work to Proof-of-Stake in 2022. Many of the tokens

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