Tokenomics 101: Bitcoin & Ethereum

We call Tokenomics all the things that enable participants to earn more tokens by contributing positively. Basically, setting up Tokenomics for your project means "What can we put in place to incentivize my community to participate in my project.

But setting up Tokenomics is not a small task for creators, specifically for those new to the crypto world. How many tokens should a creator allocate to contributors? How much of the supply should be reserved for the community’s treasury? What will be the total initial supply? Many questions come to mind, and it's not always easy to have the correc... See more

Finally, I want to double-click on a point we touched on earlier – new token issuance used for incentive programs. While we don’t see this on most of the major L1s (e.g., Bitcoin, Ethereum, Solana), we do tend to see this at significant scale on L2s. Unlike L1s using issuance to incentivize token holders to stake rather than hold idly, these incent... See more