What Is Tokenomics and Why Does It Matter? | Binance Academy

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Tokenomics is a fundamental concept in crypto. Let’s dive into the key elements that could impact the value of a token.

Based on these rules, it’s easy to calculate that around 328,500 bitcoins will be mined in 2022 by dividing the total number of minutes of the year by 10 and then multiplying by 6.25 . Therefore, the number of bitcoins mined each year can be predicted, and the last bitcoin is expected to be mined around the year 2140., which miners receive when a new block is validated. This fee is designed to increase as transaction size and network congestion rise.

Token utility refers to the use cases designed for a token. For example, BNB’s utility includes powering the BNB Chain, paying transaction fees and enjoying trading fee discounts on the BNB Chain, and serving as community utility token on the BNB Chain ecosystem. Users can also stake BNB withThere are many other use cases for tokens. Governance tokens allow the holder to vote on changes to a token’s protocol. Stablecoins are designed to be used as a currency.

On the other hand, pre-mining allows a portion of the crypto to be minted and distributed to a select group before being offered to the public. Ethereum and BNB are two examples of this type of token distribution.

 

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