Economic Model Components

Supply and Demand Dynamics

Balance token supply with realistic demand scenarios to avoid oversupply, which can lead to rapid value dilution, or undersupply, which can trigger excessive volatility.

Emission and Inflation Rates

Clearly define emission rates with flexibility to adjust based on market demand, avoiding rigid schedules that can't adapt to changing conditions.

Revenue and Value Capture

Ensure revenue mechanisms directly feed back into liquidity pools or treasuries, actively supporting token price and ecosystem health.

Actionable Insight:

• Regularly update your demand projections based on user growth and actual usage data, adjusting emission rates quarterly.