Introduction to Tokenomics Design Process

Tokenomics, a blend of token and economics, involves the strategic design of a token’s economic model within the ecosystem it operates. More specifically, tokenomics encompasses the set of monetary and non-monetary (governance) rules a protocol employs to incentivise user coordination towards a specific goal, even when individual users hold uncorrelated or conflicting goals. Tokenomics addresses various aspects such as the token’s issuance, management, distribution, and how it can incentivise desired behaviours in its network.

Economics: Given that there is…