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DEC 30, 2023

Tech Over Tokenomics ?

by Fbsn..eYCt, Michaelo

An analysis why tokenomics matter a lot in Crypto
As important as having a good tech innovation is in web3, it's always about the Tokenomics 
Why?
Grab a coffee let me explain it to you 
Tokenomics have always been at the forefront of developments in Web3. 
It is the fuel that helps push the tech innovation a web3 project has
I'm gonna give you 3 tangible reasons 
(The 2nd is a hard truth but the 3rd will blow your mind)

First Reason:  Tokenization

We're in a tokenized space and for tokenized Web3 projects, the economics of their tokens will always be very important (if not the most important thing)
We cant actually separate the tokenomics from the token. They are so intertwined that you cant deal with one separately 

2nd Reason: Gain Syndrome 

Note these raw facts ; 
  • Most folks are just here for the gains and not the tech. 
  • Your pot-belly VCs don't give a damn about your Tech. If you make the mistake of pitching to them without good tokenomics , be ready for a heartwarming "NO" (*Heartwarming if you have a good tech thou, otherwise you will need super glue for the heartbreaking NO that you will get..😂). 
  • Your users are probably hungry, broke or greedy investors who just want to make quick bucks at each slightest opportunity . We call them the Ranjeet Pajeets 😂 (IYKYK).
Admitting these raw facts about how this Web3 ecosystem works will guide you both as an investor and as a builder 

Final Reason: Token-Centric Model of De-fi

The Decentralized finance (De-fi) space has a similar model to the Stock markets were the price of shares determine the success or failure of companies 
Apparently, company progressing = Shares going to the moon
Same thing goes on in De-fi .
Token price going up = project succeeding 
It's a financial space and most times people care about the activities of money rather than what is behind the money
Can I leak a secret for you? 
Keep your Tech very simple and focus on your Tokenomics 
I'm gonna be writing later on " how best to tighten your tokenomics "
But for now,Play with the Bulls otherwise wrestle with the Bears 
Peace ✌️

If you love these insights, then you are gonna love my next post 

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