We have all seen where blockchain projects presented the latest new coin or token that was supposed the be the next big thing and provide a solution, only to see it fail.
Why is that? A Bad Token Economy most likely is to blame…
As we talk through Token Economics, we will discover how it plays a major role in the success of a blockchain project and how users can benefit from it.
What is a Token Economy?
Token economics is the allocation of tokens to modify (or incentivize) specific behaviors to create strong communities with the underlying goal of creating a valuable crypto asset(s).
What is an economy? In its broadest sense, the economy is the organized system of human activity involved in the production, consumption, exchange, and distribution of goods and services as defined by Merriam-Webster’s Dictionary.
Putting it together the Token (is a store of value) and an Economy (is a medium of exchange) whereby the goods or services are exchanged.
Why We Need A Strong Token Economy?
The need for a strong Token Economy is vital for a project’s success and longevity. Without a strong Token Economy, the token will lose activity, liquidity, value and adoption. Gayatri Sarkar noted in her article “Blockchain Token Adoption Problem: why the network effect is not enough.” three major features a blockchain project must have:
- You’re Blockchain project must be “Sticky”: It should not only have one singular use but multiple use cases tied to it. This makes the token sticky because where in one person may need it for one thing another person may use the token for another reason.
- Solve Real World Problems: The real world is where we all live. Your project must shake hands with practical use in users individual lives providing value and making their real world a little easier.
- Create Interest: Interest and hype in your project is essential making it a “must-have” will keep people’s attention and drive participation. People don’t want to miss out on the latest trend or the next amazing thing, let’s face it being left behind is no fun.
How Does Upthinity’s Token Economy Work?
With Upthinity our leadership team ensured that our project embodied those essential ingredients to having a successful Token Economy. Our native UPZ token will have a multilayered use case that will drive utilization and adoption.
We’ve Created and are Cultivating Our Economy
With 5 core crypto apps built into the Upthinity ecosystem, our rewards and revenue sharing model, and more we have set the foundation for a strong token economy. Upthinity wins because we have great tokenomics that cultivates our marketplace as you will see with:
• Actual Token Utility and Stored Value
• Balanced Supply and Circulation
• Growing Community Adoption
• Blockchain Scalability
• Innovation Momentum
• Daily Reward Opportunities
Bitcoin leads the market and other coins correlate to it’s market fluctuations frequently but there are a few tokens that have broken away from bitcoin’s market influence to stand on their own and Upthinity will be one, charting our own path for growth.
NOTE: This article should not be considered financial or legal advice and is the opinion of the author.
Connect with Us Today: