Steemit Crypto Academy Contest / S6W3 - Tokenomics in the Crypto Ecosystem

Hello everyone I Hope you are all ok and enjoy the good life by the grace of Allah Almighty I am here for participate in the amazing engagement challenge which organised by the steemitcryptoacademy the name of this contest is Tokenomics in the Crypto Ecosystem we will manage al the questions in this post so let's start;

A big success in the crypto projects is always with the help of its tokenomics this is the combination of two words whixh are related to the cryptocurrency first is Token and the second one is economics these two elements makes all the cryptocurrency it is the valuable for the investors these two words has a big meaning including token supply to how it issued.

It is very wide project we simply say that tokenomics is the form of study of economic blockchain it plays very vital role for the success of blockchain it is very important espionage when the investors do their investments in the hold tokens for a long time actually it is decided the value of token for the investors in the valuable market.

By the effect of tokenomics has also impact on other crypto tokens they increase or decrease the prices of crypto tokens when we heard a word tokenomics it determined two major things about the crypto economy one of them is how token will be distributed and second one is supply and demand of token.

First of all this concept is very important for the trading I have already said that when the investors invest in the hold token first of all they analyse any trade in the market and they use tokenomics for this analysis due to highly risk market this concept creates the crypto assets moreover it gives the transparency in the wides projects.

By read about the tokenomics a investor decided that he invested in that token or not tokenomics tells about the supply of token and actual value of token in the market and decided the future of this token for the investors that it will be good or bad for the staking in future.

For the public blockchain tokenomics is very necessary because this blockchain is open for everyone on the other side it tells us about the demand of token and it has a big effect on the crypto blockchain tokenomics decided the promotion of any token in the market and and attract the investors to this token.

The components of tokenomics are very important for the trading of any token here we discussed about major components and read them in details these components decided the grow and worth of any token in the market:

In the crypto ecosystem the mining and staking is very important components this component mean a creation of new token in the blockchain and increase the supply of this new token in the market it is totally dependent on the ID of this particular blockchain.

To the verify the order of transactions a proof of work is used to solve the mathematical calculation staking means holding its work is same but the locks the number of coins in the blockchain for the verification of any new token proof of stake used in the blockchain so these two mining and staking are important for the understanding of tokenomics.

The second main component of the tokenomics is Token burn it is used for the burning of any token in structure when the burn tokenis done it becomes a more valuable and reduced the token circulating supply for this purpose token send into the null address.

This component is for the destruction of any token to improve the market of this token the burning of token should be permanently or completely burn token should improve its prices in the market if the supply is less the status of token in the market is high burn of token is very good to grow the price in the market.

When the new token launched by the developers the most important for the token is that its supply in the market the meaning of this component is that the supply the liquid form of token in the market there are two types the supply of token:

• Circulating supply

The circulating of supply of any token means the actual amount of these token which are available for the supply in the circulation this supply gives the more value of any token when the circulating supply is less the demand of token rises.

• Total supply

This component means the maximum amount of token until the mining by the users in the blockchain when the supply is complete the mining of token will be stoped by the users by using this component it is more chance to grow any token in the market.

I have chosen the XRP and this is the token of Ripple here we discussed about the tokenomics and its supply with the screenshot as see the below:

In this screenshot we see the actual price of XRP is 0.38$ it is very good token fornthe staking now in another screenshot we see the its supply and circulation so see the below:

In the screenshot we see the circulating supply is 50,395,461,568 XRP and the maximum supply is 100,000,000,000 its code is similar as ether it has lower transactions charges than bitcoins it is used across the ripple network.

Yes, I will certainly invite my friends to invest in the Ripple (XRP) project. The future of the XRP token is going to be successful very much and its currently market rank is also not ignored. The Ripple token is always ranked very good in the crypto market and most of the traders like to make their trades or investment in it.

The main reason why i think that the XRP investment is a good investment because its use cases are very important in its growth. it belongs to the XRP Ledger that is a public ledger platform that allow the users to make international payments in the world and xrp coin found its use there.

In addition to it the XRP token is one that is the governance token of the Ripple leger which is famous for the cheap transactions, high transactions speed, high security and high scalability of the network. It has also been accepted at different locations as the best payment method for goods, NFTs and many other decentralized application projects are also based on it.

The study of the economics of a token and its Blockchain is very much important when we are going to invest in that token and make trade on that token. Some important points that are the result of the study of Tokenomics are.

• The token economic can help the traders to look the total supply of thay token and so they can make reasonable profits when there is short supply of that token in the future.

• The token economic helps the traders to understand about the worth of that project in the crypto world and how far thay project has get popularity in the digital world.

• The utility of that token and the uses of that tokens can help the traders to understand the worth of that token and if the token is good valued then he will surely like to invest in that token.

• Transparency of the Blockchain technology is another important factor that can help the traders to ensure more security in the platform. so it is also a benefit of the tokenomics.

• the liquidity of the tokens in the market can also be determined by the token economic study and it can make the trades more effecient and fast in the market.

The development of a new token and a blockchain is not an easy task. the developers should have to look on different factor like token economics and its components to avail their users with the fair working of the blockchain. so if i will design a new token then i will look the following things.

• first of all i will look on the supply of that token. By knowing the use cases of that token i will be able to set a good maximum supply of that token in the market.

• i will also look the utility of that token because it is the most important thing that can effect the value of a token in the market. The tokens that are used on daily basis are morr successful according to my knowledge.

• third thing that i will look is may be the burning of that token. To lower the supply of that token in the market and increase the demand of the token i will setup a proper burning system for the welfare of the project and its token.

Tokenomics is very important for the investors and staking holders in the future with the help of tokenomics they read about the token and its future by the understanding of tokenomics we gain knowledge about the trading so I hope my this post is give you more knowledge about tokenomics.

I invite
@steemdoctor1
@malikusman1
@minikay
@lavanyalakshman
to participate in this contest.

Thank you