What is Tokenomics? The token economy

One of the revolutionary concepts introduced by tokens is that of tokenomics or token economics. This concept is based on convincing users or investors of a project that the token derived from it can help build a sustainable economic ecosystem.

Tokenomics: the development of the ecosystem

As we mentioned at the beginning of this article, the token economy or tokenomics seeks to create an economic ecosystem sustained by tokens. An ecosystem where everything is sustained by the different possible interactions with these tokens. In this way, the ecosystem is made up exclusively of tokens that represent tangible assets.

This asset can be anything. A work of art, a book, a blog article, a song, a scientific study, a piece of real estate, a car and even financial assets that we are already used to. The real power of the token economy is that it allows us to move any kind of value from the real world to the virtual world. But not only that, the token economy allows us to decentralize its control.

But the development of this new concept of the economy goes through the construction of blockchain technology. And the reason for this is very simple: tokens can exist, but without the blockchain, there is no token economy. This is because the blockchain is the means to achieve the necessary decentralization required by the token economy.

Importance of tokenomics

Tokenomics allows the creation of self-sufficient economic systems. In this sense, blockchain technology has allowed these systems to begin to develop in different use cases.

Each development with its principles and ideas, but in general all under the concept of allowing economic microsystems to evolve within their own rules. This clear diversification will lead to many projects being developed successfully and others not. But in general, those that achieve it will have a clear impact in the real world by allowing the tangible to be brought into the digital world, tokenizing it and allowing us to interact with it uniquely.


The first step in building a token economy is to have a community that supports the principles and goals of such development. This serves to build a critical mass that gives the token project the necessary public support. This aspect will inevitably lead the token to have a growing and stable development.

In this way, the relationship between the development of the token, products and functions associated with the community is direct and proportional. The more the community is heard, included, and taken into account, the greater the push and presence of the token.

Real-World Utility

Another important aspect of the token economy is the usefulness that the token has. A project that adds value to the real world is a project worth developing and investing in. Another important point in this regard is to recognize whether the token is fungible or not. This feature will dictate the actual usefulness of the token for a given project.

Source: bit2me Academy

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