Tokenomics is the science of shaping the economy and value of tokens. The term "tokenomics" refers to all factors that can shape the value of tokens. We at pend hub are one of the few companies in the MENA region that focus on Tokenomics and utility design.
Tokenomics is a kind of company strategy for a digital asset. This is a balanced economic model of a token that considers the interests of all participants (investors, users, coin founders, developers, and so on). Tokens can also be used in communities and NGOs.
Tokenomics will enable everyone who wants to get a fundamental analysis of any token or cryptocurrency. Yet, it is not only about crypto, since crypto is not legal yet in Egypt and has started to get legalized in Dubai and the UAE. Thanks to the data acquired, it will be possible to conduct a thorough assessment of the token's attractiveness, including the investment one.
In general, tokenomics is:
Macrotokenomics – explores the connection and relations of tokens with blockchain networks, third-party organizations, exchanges .etc
Microtokenomics – studies the traits, profitability & sustainability of a single token.
The tokenomics development process is the process of discovering the economic meaning of a token. How will it be in demand by various target groups determines its liquidity, price, and favor. To develop tokenomics, you need to have understanding of macro and microeconomics. Having a technical knowledge in the fields of crypto, blockchain technology and smart contracts is a must as well.
Usually, a detailed description of tokenomics is written in the light paper of projects. When creating and issuing tokens, each brand, NGO or organisation has the opportunity to develop unique tokenomics that can ensure the project's success.
The economic model of the token is based on thebusiness model and profitability. Token Economics, or tokenomics, has a mathematical representation and has been tested for relevance and business startegy. The tokenomics is closely related to the vision of business strategy and by the Executives of the businiess.
Tokenomics is ususally developed at a very early phase so that it shows business issues and helps avoid negative outcomes. Strategic investors constantly study tokenomics and very often double-check the mathematics and the unit economics of the token.
Not all existing token models comply with the legality of various jurisdictions, and are cost-effective. Developing a good tokenomics model is extremely difficult.
The creation of tokenomics requires the skills of such experts as business model developers, mathematicians, macroeconomists, marketers and, most importantly, Blockchain specialists and Web3 experts – people who can transfer the meaning and logic of tokenomics into the real code.