# Experimental Tokenomics in Web3

### Dynamic Supply Mechanisms

Dynamic supply models adjust token availability algorithmically to maintain stable pricing and market conditions. Projects such as Olympus DAO have successfully implemented rebasing tokens with predictable price floors supported by Protocol-Owned Liquidity (POL).

### Merit-Based and Reputation Systems

Projects are increasingly experimenting with merit-based token distribution, rewarding users based on their contributions and reputation scores, enhancing fairness and reducing risks of token centralization.

### Integration of NFTs and Token Rewards

Web3 gaming and engagement platforms leverage NFTs alongside traditional tokens, creating innovative reward structures and incentive alignments. Examples include NFT staking and game-integrated tokenomics, boosting user retention and ecosystem growth.

### On-Chain/Off-Chain Dual Token Models

Hybrid dual-token systems are being explored to combine centralized stability (off-chain tokens) with decentralized flexibility (on-chain tokens). While early attempts had mixed results (e.g., Axie Infinity), continued experimentation aims to refine this model's effectiveness.<br>


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