First, we discuss Tokenomics in general. What is Tokenomics, what is its importance, what are the factors of Tokenomics and how does it work? Then we'll talk about the Tokenomics of LEO.
Have you ever thought that cryptocurrency does not come under any government financial system? Why is it getting such a high valuation? And why is there so much price variation within these cryptocurrencies? If we examine bitcoin and dogecoin, we find that the price of bitcoin is close to 26000$ while the price of dogecoin is less than 1$. While bitcoin and dogecoin work on the same algorithm. To analyze all these factors, we need to know what Tokenomics is.
What is Tokenomics?
Today we will talk about some of the same factors of tokenomics, keeping in mind that if you invest in cryptocurrency, your bank balance will not decrease but increase. First we know what tokenamics is. tokenamcis means the economics of tokens. Within the economic of tokens, for example, there is any study on the production and distribution of goods and services that have been tokenized. Tokenize means sensitive data which cannot be accessed without authorization. Cryptocurrency is digital sensitive data that cannot be accessed by any unauthorized person.
There are two things in cryptocurrency, the first is crypto coins and the second is crypto tokens. These two things are very different from each other. Like bitcoin, dogecoin, and Ethereum they work on a simple blockchain network. All these are crypto coins. The crypto coin has its own blockchain. On the other hand, crypto tokens work on multiple blockchains. They do not have their own private blockchain. You can use cryptocurrency coins like an asset. It has some value and can be used like currency. While cryptocurrency tokens have some characteristics similar to stocks.
Factors of Tokenomics:
There are seven factors of tokenamics, all of which are very important, so we try to understand them in detail.
- Supply
- Allocation
- Distribution
- Vesting
- Inflation
- Staking
- Utility
Supply:
The Total circulating supply of LEO is 16,040,061.343. The first factor in Tokenomics that greatly affects the value of a cryptocurrency is supply. The higher the supply of the asset, the lower its value. Just like you take dogecoin. Its supply is much higher than its demand due to which its value remains less than 1 dollar. Yearn on the other hand. finance (YFI) is a cryptocurrency. Also known as wifi. Its supply is very low due to which its value has increased greatly. From this you can guess that dogecoin which is a very popular cryptocurrency has such a low value and a non-popular cryptocurrency has such a high value. Which is in very short supply.
Allocation & Distribution:
As you might have guessed from the name itself. Allocating cryptocurrencies at the time of creation and then distributing them to the market. Now it is important to know how this allocation and distribution is done. It has two types. One is fair launch and the other is pre-mine. In a fair launch, a group of people start mining a cryptocurrency and at the same time start distributing it to the market. This is called fair launch. Because the cryptocurrency you are mining becomes available to buy in the market immediately after it is mined. On the other hand, what happens in pre-mine? In this, the cryptocurrency is mined in huge amounts before it is launched in the market. Which increases the value of the cryptocurrency even before it enters the market. After that, it comes to the market.
Vesting & Inflation:
The fourth and fifth factors of Tokenomics are vesting and inflation. Let's first discuss what vesting means. Vesting refers to how the cryptocurrency that has already been mined will be brought to the market. A cryptocurrency that is heavily pre-mined may be mined once a month or once a year or four times a month. Vesting depends on crypto holders. How they want to supply the market. Due to vesting, the confidence is built in the cryptocurrency holders in the market that if the supply of this particular cryptocurrency is coming to the market, then there must be work going on in it. On the other hand comes inflation. Inflation refers to the rate at which a particular cryptocurrency is rising in the market. At what rate is its price increasing? So the higher the inflation, the higher the value of this cryptocurrency. Obviously, as you can see bitcoin. How much its price had increased during the days of covid-19? If we try to check the inflation of LEO, we will know that the inflation rate of LEO is very high. On 01- May- 2023 the closing balance of LEO was 0.080165 Hive. Now the closing balance is 0.19 Hive which is a 137% increase in approximately 1 month.
Stacking & Utility:
Total Stacked LEO is 13,165,238.15 right now. The last two factors of Tokenomics are staking and utility. Stacking refers to the shares of any particular cryptocurrency you have purchased. What that particular cryptocurrency does is hold the shares for some time. Now the thing to think about is what happens by holding them. This happens when there is a rise in the cryptocurrency and its value increases a lot. And people start realizing that selling at that time will be profitable. So what that cryptocurrency does is hold those stack holders for a short period of time. Due to this, the entire supply does not come into the market at once and all the people do not sell and leave. If everyone starts selling, it will bring a lot of cryptocurrency into the market and the rate of the currency will decrease. By holding, the rate of this cryptocurrency increases.
Utility on the other hand refers to the use of any cryptocurrency. Where can it be used apart from trading? For example, if we talk about Bitcoin, we can buy gold with it. The utility of Ethereum is that the wallet you will use to use Ethereum will pay fees through Ethereum. Only through the utility will you know where you can use a cryptocurrency other than trading. Or what you can buybuy in return.
Tokenomics of LEO:
LEO is a token built on top of the Hive Blockchain. Its circulating supply is 16,040,061.343. The Total Stacked LEO tokens are 13,165,238.15. LEO MARKET CAPITALIZATION is $1,023,289.The current price of LEO is 0.19499 hive and $0.0639. Its community is Leofinance. Which is the largest tokenized community for crypto & finance content creators. Running several projects on the Hive blockchain: leofinance.io, hivestats.io, leopedia.io, https://leodex.io, and a Hive Witness Node -- @leofinance. LeoDex is a Decentralized Exchange (DEX).
Right Now, 24 hours volume of LEO is 1198.27 Hive and 392.025 dollars. Now bid of LEO is 0.19 Hive and $0.062. LEO asked for 0.19499 Hive and $0.064. Today's opening price of LEO is 0.1753 Hive and the highest price of LEO today is 0.20 Hive. The lowest price of LEO is 0.1753 Hive today.
If we try to check the inflation of LEO, we will know that the inflation rate of LEO is very high. On 01- May- 2023 the closing balance of LEO was 0.080165 Hive. Now the closing balance is 0.19 Hive which is a 137% increase in approximately 1 month. If anyone invests 20000 $ in LEO then now he gets a total 47400$ with a profit of 27,400$ in only one month. It means its inflation is very high.
These are all the factors of Tokenomics that you may know why the value of cryptocurrency is so high. And why is there so much difference between different cryptocurrencies? A cryptocurrency is worth so much that one coin can fetch thousands of dollars and a cryptocurrency is so cheap that thousands of crypto coins can be bought for one dollar.
Because LEO is a token on Hive Blockchain. So, I want to give an introduction to Hive Blockchain also.
Hive Blockchain:
Hive is a decentralized public ecosystem and blockchain. It was started by the community with no central authority. There is no corporation or a set team of founders behind Hive. It is only backed by the people who love decentralization like developers, investors, content creators, gamers, nft lovers, and many more. Hive enables a protocol where users are rewarded for sharing their content. It is a new kind of attention economy. Unlike mainstream social media projects like Facebook, Twitter, and other social networks, Hive is built to grant accessible opportunities and a degree of ownership to all of its users. Content posted on Hive is subjected to time-based monetization. Hive is 100 % open source and community-backed without any private corporation controlling it. It is a censorship-resistant blockchain that enables social media platforms to thrive. These platforms cannot sense your posts, suspend, delete, or ban anyone from posting due to their decentralized nature. All contents are permanently etched into the blockchain itself. To make this simple and clear, we rest assured that no one has the power to delete your content from the Hive Blockchain.