Tokenomics Outlook in 2022
Written by EmergentX Insights team
February 23, 2022 | 1 Min
Highlights
- Cryptocurrencies and the tokenized economy will increasingly serve as the pillar for
Web3 development, elevating the importance of tokenomics. - Decentralized projects with real communities and robust tokenomics will prevail in the
event of broad-based sector weakness. - It is imperative that projects structure tokenomics to align stakeholders’ incentives
around long-term sustainable growth.
Core thesis
Token economics (“tokenomics”) “refers to any factor that might influence the value of the
token. Tokenomics is among the most critical designs to the functioning of a blockchain
project, or more broadly, the tokenized economy. Tokenomics cuts through multiple layers
by aligning the incentives of all stakeholders in a way that is beneficial to the protocol and
alters how the utility is measured.
Significance and Disruptive Impacts
Tokenomics needs to be carefully designed as it determines the long-term sustainability and
success of decentralized projects. Tokenomics help predict the intrinsic value of the
underlying token.
Expectation for 2022
- The important role of tokenomics in the web3 economy
Cryptocurrencies and the tokenized economy will increasingly serve as the pillar for
Web3 development. - Digital assets undergo ‘natural selection’
Survival of the fittest, considered a natural progression of cycles, will play out in the
digital assets space. With the hype in the digital asset space, an eventual pullback
may be inevitable. Projects with real communities and services will prevail. - Projects with tokenomics that focus on long-term sustainability and community
alignment will outperform.
It is imperative that projects structure tokenomics to align stakeholders’ incentives
around long-term sustainable growth.
EmergentX Digital Asset 2022 Outlook
Year of Consilience
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