What is tokenomics?

The word "tokenomics" is a portmanteau, or combination, of the words "token" and "economics" and it is a relatively new term that rose to popularity in the middle of 2017. As with anything new, the meaning has yet to be standardized, with many industry leaders attempting to provide their own definition. This is similar to attempting to define blockchains or the internet in the early days, as there are a range of ideas that are encapsulated within the idea of tokenomics.

Tokenomics, however, encompasses the concept of the study, design, and implementation of an economic system to incentivize specific behaviors in a community, using tokens to create a self-sustaining ad hoc mini economy. It includes game theory, mechanism design, ...

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