What Is the Primary Purpose of Tokenomics in a Whitepaper?
Tokenomics details the economic model of the cryptocurrency, explaining how the token will be created, distributed, and used within the ecosystem. Its primary purpose is to ensure the token's value is sustainable and aligned with the network's long-term success.
It must clearly outline supply, allocation, inflation/deflation mechanisms, and demand drivers. This transparency builds investor confidence.
Glossar
Initial Circulating Supply
Metric ⎊ Initial circulating supply is a fundamental tokenomic metric representing the total number of a cryptocurrency's tokens that are publicly available and actively trading on the market immediately following the project's launch or token generation event.
Primary Purpose
Intent ⎊ The primary purpose underpinning cryptocurrency derivatives, options trading, and related financial instruments revolves around risk management and speculation, often intertwined.