With the emergence of many groundbreaking and technologically sound paradigms, the evolution of today’s crypto ecosystem has become highly dynamic. Among such, “Tokenomics” has been a powerful driving force in creating the prominence of Blockchain technology worldwide.
The word ‘Tokenomics’ comes from two words ‘token’ and ‘economics’. Understanding this highly innovative paradigm would not be justified if we do not understand tokens first.
Tokens, in a general sense, are value units distributed by an organization. However, with context to tokenomics, tokens are built directly on top of the blockchain. Tokens were rebranded with blockchain’s arrival, but the existence of tokens can be traced back to the 17th century when tokens were used to accommodate the shortage of money. Further in 1983, the idea of digital cash through tokens was also introduced.