Tokenomics

Unlike in traditional economics models, where the return on investment (ROI) of an asset is determined by how far the price of the asset can increase, the ROI on a crypto token such as NFTs is determined by the income it can generate simply by holding the token. When marketed well, this makes NFTs a viable investment for buyers due to its guaranteed ROI by merely collecting and minting them.

Determining the supply and demand of NFTs is slightly different from that of regular crypto tokens; it is also influenced by online trends and feeling among users in social media hubs and crypto communities. Tokenomics also deals with evaluating what kind of assets can be made into NFTs, how high its rarity should be, how many should be minted and how many can be available in the future, and more.

Tokenomics can help you determine if your NFT project can be pre-mined or have a fair launch. Some pre-mined projects have done historically well with select investors and developers granted early access to NFTs before the public offering, but some projects require limited, rarer tokens that cannot be hoarded beforehand. A good tokenomics strategy will help your NFT project launch on a solid footing.