Tokenomics 101: DAOs

Like a central bank applying monetary policy to control its currency, tokenomics applies policies to cryptocurrencies. These policies are the core of a currency. Without carefully thinking through the rules, the currency is likely to fail. The rules of tokenomics are implemented through code and are quite difficult to alter as they require agreemen... See more

Protocol DAOs provided a framework for any network to issue a token that was (hopefully) owned and operated by its community.

The term ‘tokenomics’ is a hybrid of token and economics, and its meaning is quite similar to economics. Tokenomics studies how people interact with tokens. Specifically, the issuance, distribution, and burning of tokens of a cryptocurrency. Economics is often divided into micro- and macro-economics. In this article I want to take more of a micro v... See more

Within the narrow context of a token’s home protocol, supply and demand for the token will — for a well-designed system — reflect supply and demand for the protocol’s services and functionality. But no token lives within a quiet walled garden. Rather, every token lives in the noisy Forest.