FBX Understands Tokenomics
Tokenomics is the study of the economics of digital tokens—the blockchain-based digital assets that are used to represent a variety of digital activities and ownership rights, such as loyalty points, digital currencies, and utility tokens. Tokenomics encompasses the design, issuance, and use of tokens, and the economic incentives that drive their adoption. Tokenomics studies the economic functions and outcomes of token-based activities, as well as the relationship between token usage and the broader economy. Tokenomics is an important component of the larger “token economy”, which involves the use of digital tokens to facilitate economic activities.
When looking to create a new version of money FBX said, Tokenomics, No thank you.
Tokenomics is in the main the dark art of manipulation, carrots on sticks, meaningless rewards and other just out of reach enticements to have people buy and/or hold a digital asset.
It is a word that history will make fun of, the fine art of predicting to an exact % the various costs involved in a new enterprise, mix in some AirDrops, Staking Rewards and other nonsensical magic money giveaways that dilute holders and add to operational costs.
Here are some actual facts:
If there is a reward, someone paid it. It must then be taken in to the cost of financing. If the cost of financing is too high the underlying business will fail.
Staking, putting your tokens on deposit to earn more of the same tokens, only in the Crypto world is this not recognized for what it is, dilution, massive dilution in some cases undermining all investors in the project.
How does it work at FBX?
So far there are $1b tokens, none are for sale, the public own less than 1%.
New tokens will only be issued in exchange for value received or to meet demand across new networks, never diluting the market or the balance sheet.
There will not be a Public Offering of tokens.
The objective is creating a currency that grows in value compared to other currencies (Crypto and Fiat) over time.