Binance Tokenomics Deep Dive Report Overview
“Tokenomics can be defined as the study of determining and evaluating economic characteristics of a cryptographic token. [The Binance report aims to understand] how various incentives affect the supply and demand of a token and, ultimately, its price.”
The report introduced the concept of Supply and Demand – the MOST important thing in Tokenomics.
The report also covered the overarching foundation to different token aspects like , use-cases, allocations, vestings, and emissions. Also, it rightfully stated that protocols that don’t taper with their emissions after attracting initial demand via high APRs are not sensible.
This Tokenomics Report pointed out niche token value-adds, such as that some crypto companies are self-classed as non-profits therefore selling tokens to pay for growth and ops is understandable.
Covering FDV vs Market Cap well from perspective of investors, the report explained vote escrow well and went over its benefits and potential drawbacks to users.
In this report, the reader can get explanations around how a dual-token economy operates and the pros and cons of such a model, also pointing out that not all projects need a token.
Brief conclusion – “without a good product, even an excellent token design and utility are of little value”.