Evolution of tokenomics

The term tokenomics, is a combination of the words “token” and “economics’, describing the concepts and economic systems centred upon digital tokens. The 2009 launch of Bitcoin by the anonymous Satoshi Nakamoto marked the beginning of tokenomics. Bitcoin was intended to be a decentralised digital money that could be an alternative to conventional fiat currencies, allowing peer-to-peer transactions without the need for intermediaries such as banks. What makes Bitcoin so innovative is that it is a distributed ledger that records every transaction over a network of computers, and this ledger is called blockchain technology. The term “tokenomics” encompasses the strategies and economic structure that govern the value proposition, distribution and issuance of tokens on a blockchain network. Tokens, the backbone of decentralised apps (dApps), smart contracts and even entire blockchain systems, can represent various entities such as money, assets and utilities. The key to effective tokenomic…