What is Tokenomics?

Tokenomics
2 min read

Blockchain technology goes one step beyond bitcoin and leads to a new revolution, but to really understand what tokenomics is to understand we first need to understand the meaning of a token.

A token is a physical or virtual object that has a certain value but only in a certain context. The simplest way to exemplify this is through the casino chips, which by themselves are simple pieces of plastic, but in the context of a casino they represent the value of money while helping to facilitate the dynamics of the games.

tokenomics

What is tokenomics?

Tokenomics or token economy is called the entire economy that can be created through a token. Either to improve its governance, to incentivize usability, offer better liquidity, facilitate exchange or any other benefit.

Tokenomics aim to create an economic ecosystem supported by tokens, which can represent anything both physically and digitally (a book, a house, a car, etc.).

The true value of tokenomics is that they will allow us to transfer any type of value from the real world to the virtual world and also decentralize its control through blockchain technology.

Tokenization Example

If a company decides to apply tokenomics to its work environment, it could promote that its workers earn tokens if they perform certain tasks (eg, volunteer work, online courses, etc.) and in return they can exchange those tokens for benefits (eg. Office decoration, etc. ).

Although tokenomics are economies that are in a growth phase, in some sectors we can already see various applications. A good example is Basic Attention Token (BAT), a token designed to be used within the advertising and digital marketing sector and which has already achieved a market capitalization of USD 374,316,640. If you are interested in this project and would like to invest in it, you can do it through Bitnovo in simple steps and safely.