Tokenomics: Start with the Basics

In the modern world, bank bailouts and pandemic responses have required governments to create a tremendous amount of new coins. While governments oversee this process, creating additional coins can cause a slow, or sometimes fast, reduction in the value of the existing money. We call this reduction “inflation” and it is most visible when the prices of the things we buy increase year after year. Crypto assets and token economy act as a hedge against the old financial system. The idea of the token economy was first called by the Harvard psychologist B.F. Skinner in 1972. He believed a token economic model could control behavior, giving some unit of value would incentivize positive actions and vice versa. Incentives control behaviors. The first thing that you should notice is that the world we see around us runs on incentives. For example, a child goes to school because of a learning procedure. People follow the recommendations of their dentist to reduce the risk of dental problems.

medium.com/@coorest.official/tokenomics-determines-the-future-of-every-crypto-project-4f2e2a4fbf76

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