Cryptocurrencies have revolutionized the way we think about money. They provide a secure, decentralized way to transfer value across the world without relying on traditional banking or government systems. But what is tokenomics, and how does it play into the crypto world?
Token allocation
The choice of token allocation and unlock schedule has implications for the value and usability of the token in question. Distributions that allocate too many tokens to one entity can lead to centralization and decreased price stability while unlocking schedules that release all tokens at once could potentially cause market volatility due to heavy selling pressure in short order.