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Token Economics

Token economics, or "tokenomics," refers to the design and distribution of digital tokens within a blockchain network. These tokens have specific functions—such as granting access, incentivizing participation, or representing assets—and their value depends on factors like supply, demand, and governance rules. Proper tokenomics encourages users to contribute, maintains network security, and aligns incentives among stakeholders. In essence, it’s the economic strategy that ensures the digital currency or token effectively supports the platform's growth and sustainability.