TOKENOMICS How to Analyze Crypto Projects   Blum Academy #blum #crypto #airdrop #bitcoin - video Dailymotion

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TOKENOMICS How to Analyze Crypto Projects   Blum Academy #blum #crypto #airdrop #bitcoin

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00:00Hey there crypto enthusiasts, ever wonder why some tokens are worth a fortune while

00:03others fizzle out? Or how these digital assets can fuel entire ecosystems? Well, it's all

00:08about tokenomics. Today, we're diving into the economics of tokens and what makes them

00:13tick. Let's give the floor to Vladimir Smirkis, who'll break it down in simple terms.

00:20Hello, everyone. This is Vladimir Smirkis. And today we will talk about a word or definition

00:27for all crypto projects. I'm sure you've heard it. Tokenomics, tokenomics, tokenomics.

00:33The tokenomics of specific project determines whether we will invest in it or not. So what

00:39does tokenomics really mean? Let's figure it out together. So tokenomics is the economy

00:46of tokens. Well, most crypto projects, blockchain projects have tokens. Tokenomics is the way

00:52these tokens interact with each other and the rules they follow. How much tokens will

00:57be allocated to investors, how much will be allocated to the audience, how many tokens

01:02will be burned, and how they will interact within the project. First and foremost, tokenomics

01:08should define the purpose of the tokens, or as it is now commonly referred to, the utility

01:12of these tokens, meaning the way they will be used. For example, for some blockchains,

01:18tokens are used as means of payment for fees within transactions, within the network, or

01:23a so-called gas. This is the most utilitarian and straightforward way. For example, in many

01:29cases you need exchange tokens to participate in launchpads and launch pools, which involve

01:34the distribution of tokens. You can stake or collateralize your tokens, and depending

01:39on their amount and the size of the staking, you will receive tokens of new projects that

01:43are listed on exchanges. Therefore, we should determine the purpose of the tokens as the

01:47first step. Secondly, tokens can motivate users to perform certain specific actions

01:54within the project. Also, tokens often serve as means of payment within a project. Specifically,

02:01Bitcoin is simply a peer-to-peer, electronic cash system, a payment system based on decentralized

02:07information storage, decentralized verification of transactions, and so on. Therefore, its

02:13utility is very clear. In some blockchain games, tokens are used as a payment method

02:19for participating in these games. Then the big question is, why do you need tokens and

02:24blockchain coins if you can pay with dollars, euros, rubles, or any other currency? Undoubtedly,

02:32the project itself needs tokens to have a so-called treasury, from which they will pay

02:36for marketing expenses, team salaries, and so on. Investors need tokens so that they

02:43can invest real money or use DET at the early days of the project and then receive their

02:48profit by selling their share of tokens. How is tokenomics formed? Well, of course, here,

02:55as in any economic model, the initial market supply of tokens is being formed. Sometimes

03:00all the tokens are released to the market at once, and sometimes tokens can be additionally

03:04minted. Also, tokens are often used to perform so-called governance or management. Token

03:11holders can vote using their votes or tokens for a particular decision. For example, to

03:17implement some technological improvement to the product or to repaint the project's

03:21application green. Of course, I'm joking now. But nevertheless, voting on various decisions

03:28is very often based on using tokens. This is called a DAO, a Decentralized Autonomous

03:34Organization, or DAO governance, the management of the project's life by those who hold

03:39a larger number of tokens rather than a smaller number. Tokens exist on the blockchain, so

03:45they are completely transparent, and we can see what percentage of tokens is held by a

03:49major holder or a group of major holders, how many are held by regular users, how often

03:55they move, and the number of performed transactions. All of this can be checked with the help of

04:00so-called blockchain explorers or scanners, for example. In TUN, there is TUNSCAN, there

04:07is ETHERSCAN for Ethereum, there is BNBSCAN for coins created on the BNBCHAIN blockchain,

04:14and so on and so forth. Therefore, the transparency of tokens undoubtedly exists when we talk

04:21about public blockchains and public tokens created on these blockchains. What should

04:26you pay attention to when you want to analyze the tokenomics? First, you need to consider

04:31the distribution of tokens. If the project founders hold the lion's share of the tokens

04:37while the other participants have very few, this should raise some significant questions

04:41for you. Will the price be determined fairly and transparently? If the owners decide to

04:47dump all their tokens on the market, it will, accordingly, crash the price. Therefore, the

04:52distribution should be more honest or more fair. The second point is the utility of tokens,

04:58how the tokens will be used within the project and what they are needed for. Therefore, the

05:03token economy should be tied to utility, something the token is needed for. The key thing you

05:08need to pay attention to within the project and comprehend for yourself is whether the

05:13demand will increase over time, whether the demand will grow as the product develops,

05:20or if it is a one-time event that could end up with unfortunate consequences for you.

05:25And thirdly, the economic incentives for project participants, how they will actually engage

05:30in the life of the project. Will it be voting? Will the tokens be used within the project?

05:35For example, for staking, where you can stake a certain amount of tokens, earn rewards for

05:39that, and so on, and so on, and so on. And fourth, it is important to understand the way

05:45tokens life is expected to continue after the release of tokens within the project.

05:50Well, typically what happens is that team members write a white paper based on their

05:55main idea, often create an MVP or initial product that demonstrates its viability,

06:00then the token listing occurs. Meaning that tokens start becoming liquid on centralized

06:05or decentralized exchanges, even on large tier 1 centralized exchanges. It provides

06:11more guarantees for buyers, consumers, and token holders, so they believe that the project

06:17will continue to thrive. And of course, at this point we come to understanding

06:22that the token has some future. But it is important to know the founders' aspirations

06:27for the future and how they plan to develop their project in detail. If once again, this

06:34is a one-time thing that they did once and then stopped, it's probably not very good.

06:39In blockchains, everything is very clear. Blockchains are created based on the requests

06:44of developers and community that exist, for example, to make blockchain cheaper. Faster,

06:50more transparent, more interactive. In the case of TON, we also have Telegram, for example.

06:56On top of everything, it has access to an audience of nearly a billion users, 950 million

07:01active monthly users. This was noted by Pavel Durov in one of his recent posts. In other

07:07words, all these things together should give you an understanding of the prospects of the

07:11token you are considering for investment or trading.

07:15So what is needed to create tokenomics? First of all, determine the essence of the project,

07:20the utility of the project, and distribute the tokenomics in such a way that there is

07:24no pressure on the price. If you give all investors the chance to sell all their tokens

07:28at the time of listing, it won't likely be very well received by retail, by mass users.

07:34Thanks Vladimir for that clear and insightful explanation. So now you've got the basics

07:39of tokenomics down. It's not just about the digital coins themselves, but the entire economy

07:44that surrounds them. Whether you're investing, trading, or just curious, understanding tokenomics

07:48gives you the power to see the bigger picture in the crypto world.

07:54That's all for today. Hit the like button, share your thoughts in the comments, and don't

07:57forget to subscribe for more crypto content.

TOKENOMICS How to Analyze Crypto Projects Blum Academy #blum #crypto #airdrop #bitcoin

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