diff --git a/Tokenomics/README.md b/tokenomics/README.md similarity index 62% rename from Tokenomics/README.md rename to tokenomics/README.md index b8bcd13..b29ed43 100644 --- a/Tokenomics/README.md +++ b/tokenomics/README.md @@ -1,10 +1,12 @@ -## 📊 tokenomics for defi projects +## 🍿 tokenomics for defi projects
-#### Tokenomics studies the factors that drive the demand for tokens. It includes: +### tokenomics factors + +
* math * supply vs. demand @@ -14,7 +16,11 @@
-#### Questions to ask +---- + +### main questions + +
* How many tokens are in existence? * How many tokens will there be in total? @@ -26,7 +32,11 @@
-#### Things to watch out +--- + +### concerns + +
* The tokens were inflationary without enough utility. * Concentration of tokens by VCs & whales led to retail getting dumped on. @@ -35,7 +45,11 @@
-#### Supply Metrics You Should Know +--- + +### supply metrics + +
* Supply: How many tokens exist NOW * Max supply: The most that can exist @@ -44,30 +58,25 @@
-For example, it's not a good sign that a circulating supply was only at 40%. That means the supply will increase by 60%. -More coins created will put pressure on the price. +* for example, it's not a good sign that a circulating supply was only at 40%. That means the supply will increase by 60%. + * More coins created will put pressure on the price. +* another example, Dogecoin is an inflationary token: its supply is increasing each year, and there's no CAP on the supply. + * this isn't good for Tokenomics because it's the opposite of Scarcity. Some coins can become deflationary when the supply DECREASES over time.
-Another example, Dogecoin is an inflationary token: its supply is increasing each year, and there's no CAP on the supply. -This isn't good for Tokenomics because it's the opposite of Scarcity. Some coins can become deflationary when the supply DECREASES over time. +--- + +### allocation & distribution
-#### Why Ethereum is ultrasound money - -* The merge to proof of stake lowers the inflation supply of ETH -* EIP-1559 takes a bit of the transaction fees and burns it - +* how are the initial tokens distributed? There are roughly 2 ways:
-#### Allocation & Distribution - -How are the initial tokens distributed? There are roughly 2 ways: - -* Pre Mined: +##### pre minted 1. The team distributes tokens to itself. 2. Distribution to insiders such as the team and venture capitalists @@ -75,17 +84,24 @@ How are the initial tokens distributed? There are roughly 2 ways: In this case, VCs and Insiders could dump their tokens and cause a price crash. Vesting means when they're allowed to sell the tokens. You want to make sure that the early backers are INCENTIVIZED with the protocol long-term. -* Fair Launch: +##### fair launch -100% fair. Everyone has equal access. +* 100% fair. Everyone has equal access.
+
+ Screen Shot 2022-05-31 at 4 10 16 PM +

-#### What Drives the Demand for Tokens? +--- + +### what drives the demand + +
* Utility (gas, fun, adoption) @@ -96,10 +112,7 @@ Vesting means when they're allowed to sell the tokens. You want to make sure tha --- -
- - -## resources and tools +### resources and tools