Tokenomics

One key feature of cryptocurrencies, different from regular money, is that their rules are written in code. This makes them transparent, but also hard to change. Take Bitcoin for example. It has a maximum supply of 21 million coins. These are introduced into the system through a process called mining, where people get rewarded with Bitcoin for validating transactions. This reward gets halved every four years, ensuring that the last Bitcoin will be mined around the year 2140. These rules, built into Bitcoin's code, make its monetary policy predictable.

Solid tokenomics ensures that a token's valuation is closely tied to its real-world use and the demand within its ecosystem. Well-thought-out tokenomics can align the interests of everyone involved with the project, from developers to early investors to users, creating a sustainable and thriving digital economy around the token.