Steemit Crypto Academy Contest/S6W3. Tokenomics In The Crypto Ecosystem.

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Introduction.

Greetings to you all and welcome to my very first post here on steemit crypto academy contest, just as you must have known I'm a lover of crypto as i buy and sell all kinds of crypto-currencies.

Crypto-currency and its decentralized nature have been of a significant value globerly, its decentralization means nobody has the tendency to control it.

Crypto exchange in some countries can be controlled just as we have it in Nigeria here, where you can withdraw Crypto down to your bank account.

Crypto on how own is a token which exists in so many exchanges be it centralized on decentralized exchanges all round.

But here in this lesson i will be talking about crypto and it's economic which brings us to the topic of today Tokenomics.

What's your understanding of tokenomics in the crypto ecosystem? And highlight the main importance.

Tokenomics can be defined as the process involved in the combination of token and economics by this we aggravate all the important factors In-continuation with real value of a Crypto token, token itself is a unit of a digital asset's.

Tokenomics has so many inclusivity which pinpoints total token supply, the process of additional and subtraction of tokens in circulation globally, various intensive project utilities etc.

Overall economic of a particular token can best be described as tokenomics, this is my best definition for tokenomics.

Now remember when a particular Crypto is analyze there are lots of values attached to that particular token, it can rise and fall (fluctuation).

Importance Of Tokenomics.

As an investor before you emback on investing on any token there are various factors that should be considered, this brings us to the importance of tokenomics.

• Token Supply: Token supply refers to various parameters or element that makes a particular Crypto valuable and its total supply, just as we know there are 21 million Bitcoin in circulation.

• Knowing a particular token supply gives you a grand opportunity to know the kind of utility a token possesses all round, when it comes to making investment decisions please consider tokenomics.

• Determine Token ATH:before you proceed to investing on a token you should do a research work to determine that particular token all time high, read study and analyze the chart before embarking in investment spray.

• When you determine a particular Token ATH you will understand the importance of tokenomics, you will surely buy and Hold tokens for a long period of time.

• Good quality platform: When your platform is well built there will be massive demand's, check a look at @steemit, the platform is outstanding that's why you have people flopping and tripping in.

• When your project have value prices will be boosted, same is applicable when launching a project, in all facet's various investors and developer's needs consider tokenomics specially for their various native currencies.

• When your native token is considered there will be massive supply and demand's and thus investors will massively be attracted all round.

What are the components of tokenomics? Explain each in detail.

When we talk about various components these are the common features that makes investors to invest in a particular token, either to buy or sell, in this case supply and demands are key, as it helps to surge Price higher.

Just like what we have i fiat, you will find out that each currency possess its own monitory policies, same is applicable to Crypto token, below are some of the various components of tokenomics.

• Mining And Staking: We are familiar with this terminologies mining, in Etherium 1.0 which is a base layer and BTC mining is key when it comes to a decentralized network used to validates various computing transactions across the system.

• When you mine you get new token reason being that you shring up new computing power that will be used to detect new blocks that will be added to the blockchain.

• Crypto itself exists in a blockchain, this makes it nearly impossible for hacker's to gain admission into the blockchain, when staking is been done some coin's are set aside for the purpose of smart contract's.

• Yields: Various Dex finance platform in all ramification grants a higher yields for various person's who either buys or stake their tokens, when these tokens are been staked they are in liquidity pools.

• These pools are humongous more like a decentralized exchanges, when the yields gets matured courtesy those who lended then the yields will be disburse like a new tokens.

• Burn Token: burn token are purely protocol's, when a token is taken out from circulation you find out that the supplication of the coin is brought to minimal.

• Just as we are familiar with the law of supply and demand's, now lets say we reduced a token supply, you find out that the token in circulation will be hard to get and the price will go up.

• i vividly remember in the month of August 2021, ETH burnt some of its token portion that where sent as transaction fees, ordinary it was supposed to be sent to miner's.

Choose a token and discuss its tokenomics. From the information deduced about the tokenomics of the asset.

Tokenomics relates to token and its economics, determining the total tokens in circulation knowing how many that is in circulation, how the token has been minted and all the rest.

Courtesy this i will be talking about a particular token which is shiba inu it's one of the very famous token around the globe.

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Shiba inu operates on the Etherium blockchain just as we all know, it has a consensus allogrithm of proof of work, but sometimes it changes from POW to POS=proof of stake.

Very important to note, shiba inu is a token which is ERC-20 which in all facet's are created and its value are equivalent, the token itself was created by a scientist called Ryoshi.

Looking at the all round tokenomics of this token regarding supply and demand let's go back to September when BTC got an abrupt fall down we are all familiar with that right.

When that happened shiba inu went down series of lower highs in bearish manner, I could remember the ATH of shiba inu which happened last year in the month of May which was $0.0000083.

Looking at the end of August in 2021 Shiba Inu price stood at $0.000007023, quick analysis at this particular time of writing Shiba Inu price stands at $0.00002614, with total trading Volume of $6,740,119,007.

Do you consider the asset worthy of investing in? Why?.

I will consider investing in Shiba Inu coin because I believe that within the amount of coins in circulation trust me it's going to outclass the previous ATH.

Currently now we have over 500 trillion Shiba Inu coin in circulation all round with tokenomics you will surely will know that this particular coin in high circulation definitely there will be more supply and demand's so there will be a total hike in price.

Give a few points on why you think tokenomics is important to investors or traders.

Is very important to trader's because before you start trading or before you think of investing in a token you must consider its input and output.

• Before you buy a token you conduct technical analysis to determine what happens to the token in nearest time.

• Technical analysis gives you the edge to determine whether a particular token will fall or rise within some specific time of asking.

• Buying a coin for HOLD requires intensive work output, by this it comes with knowing the total coin in supply and demand.

• Market capitalization is splendid, just as i have explained in the case of Shiba Inu coin, you see that it has huge market capitalization.

• meaning many person's are in possession of the coin and it will make the coin token to rise.

If you are to be a creator of a token, what aspect of tokenomics would you consider most important to drive investors to the project? Give reasons.

Answering this question is very simple, for me i will consider the supply and demands very important.

You find out that when investor realize that a particular token are very much in demand's they will like to key into that particular project.

Just as we know there are around 21 million Bitcoin, and it's the father of crypto simple because it drivers other coins in general.

Look at Shiba Inu coin, we have over 500 billion Shiba Inu coin in circulation, that is one reason why the value keep appreciating.

Its just natural that when there is more demand for a commodity the value gets to rise, and in the case of a token that isn't difference.

Conclusion.

• Tokenomics is very key whenever you intend making a key investment, they are very essential and perhaps key because it guide's you to know when, and how to buy a token.

• When token and economics are combined then we talk about tokenomics, this helps accelerate the decision making when it comes to trading and investing.

• Thank you very much for reading through my post great people in the Steemit crypto Academy i really appreciate.

• I will keep stretching and engaging in this wonderful contest all round, i will keep on doing my possible best to deliver good and quality content here.

• Let me use this medium to invite @j-clef, @julstamban, @sahar78