From 2b1b6a7b49b99e4f07f52872b726a45af08043f2 Mon Sep 17 00:00:00 2001
From: bt3gl <1130416+bt3gl@users.noreply.github.com>
Date: Fri, 23 Sep 2022 06:42:57 -0700
Subject: [PATCH] =?UTF-8?q?=F0=9F=8D=BF=20tokenomics=20for=20defi=20projec?=
=?UTF-8?q?ts?=
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{Tokenomics => tokenomics}/README.md | 65 +++++++++++++++++-----------
1 file changed, 39 insertions(+), 26 deletions(-)
rename {Tokenomics => tokenomics}/README.md (62%)
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.
+
+
+
-#### 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