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Platform Tokenomics

Definition

Platform tokenomics refers to the economic model and design principles governing the utility, distribution, and value accrual of a native token within a specific blockchain platform or decentralized application. This includes mechanisms for staking, governance, fee structures, and reward systems that incentivize desired behaviors from network participants. A well-designed tokenomics model aims to align the interests of users, developers, and validators with the long-term health of the platform. It dictates how the token functions as an economic instrument within its ecosystem. This structure is crucial for sustainability.