On Jan. 24, the dYdX Foundation, the entity responsible for the dYdX decentralized crypto exchange, announced “changes” to its tokenomics — the way it distributes tokens to early investors, employees and contractors, and, of course, the public. So, what’s uncommon about the situation? The project’s foundation, in agreement with dYdX Trading Inc. and its early investors, decided to amend the project's tokenomics and extend the period for which such investors’ initial batch of tokens would be locked, changing the date from Feb. 1 to Dec. 1, 2023. Whether this was a good or a bad thing depended on which side …

Jared Grey, CEO of the decentralized exchange Sushiswap, has plans to redesign the tokenomics of the SUSHI token, according to a proposal introduced on Dec. 30 in the Sushi's forum. As part of the new proposed tokenomics model, time-lock tiers will be introduced for emission-based rewards, as well as a token burning mechanism and a liquidity lock for price support. The new tokenomics aims to boost liquidity and decentralization in the platform, along with strengthening "treasury reserves to ensure continual operation and development," noted Grey. In the proposed model, Liquidity Providers (LPs) would receive 0.05% of swap fees revenue, with …

Tokenization is the process of converting something with tangible or intangible value into digital tokens. Tangible assets like real estate, stocks or art can be tokenized. In a similar vein, intangible assets like voting rights and loyalty points can be tokenized, too. We see Avios as an example of tokenized loyalty points by the traditional credit card industry. However, when tokens are created on a blockchain, they add a level of transparency that previous iterations of tokens couldn’t achieve. There are several banks that are experimenting with tokenization. But, before diving into the use cases in banking, it would be …

After four years of development and millions in funding, the layer-1 blockchain Aptos (APT) has finally launched its mainnet, though it has been marred by mixed reception. The much-anticipated proof-of-stake blockchain, dubbed by some as a “Solana killer” due to its claimed 160,000 transactions per second (TPS) has launched its mainnet on Oct. 17. However, some members of the community have pointed out that the previously claimed TPS is falling far short of expectations on the mainnet. According to Aptos’ blockchain explorer the network is seeing around 4 TPS at the time of writing, while some users on Twitter have …

All facets of a token's production and management, including its allocation to various stakeholders, supply, token burn schedules and distribution, are managed through tokenomics analysis. Tokenomics help to determine the potential value of decentralized finance (DeFi) projects. Since the law of supply and demand cannot be changed, tokenomics dramatically impacts the worth of each nonfungible token (NFT) or cryptocurrency. Related: What is Tokenomics? A beginner’s guide on supply and demand of cryptocurrencies However, there are various loopholes in the tokenomics design, such as a substantial initial supply allocation to insiders, which may be a pump and dump warning sign. Also, …