What is tokenomics?
Tokenomics is the study of how a token’s design and implementation affects its ability to achieve its goal.
A token’s design is the set of rules that govern how it can be created, transferred, and destroyed. A token’s implementation is the set of rules that govern how it can be used in an application.
The most important aspect of a token’s design is its economic model. The economic model defines the relationship between the tokens and other assets in an ecosystem, which includes fiat currencies, goods, services, and other tokens.
Auditing tokenomics
Auditing tokenomics is a process of examining the economic and financial aspects of a token. It includes the following:
– The token’s economic model
– The token’s financial model
– The team behind the project
– The project’s roadmap and milestones
– The project’s legal status
I believe that auditing tokenomics is going to become a standard process of tokenomics design and development, as much as auditing smart contracts is now. The goals of a tokenomics audit is to ensure that the token can achieve its function, and appreciate in value.
I had the opportunity to design and execute the tokenomics audit of the BankX token. On this podcast, I discuss more about this topic and some lessons I learned from this project. I hope you enjoy it!
As always, if you have any questions or topics you’d like to discuss relating to AI, data science or blockchain, just get in touch! Also, make sure to check out some of the events we are regularly organising with the Tesseract Academy.