How Does Tokenomics Influence the Long-Term Intrinsic Value of a Cryptocurrency?

Tokenomics refers to the supply and demand characteristics of a token, including its distribution, vesting schedules, inflation/deflation mechanisms, and utility. A token with a fixed or deflationary supply, coupled with high utility and demand (e.g. required for fees or staking), tends to have a higher long-term intrinsic value.

Conversely, a highly inflationary token with weak utility will likely face downward pressure on its value. Strong tokenomics align incentives between users, developers, and investors.