Investors buy, sell and trade tokens on crypto exchanges and the value of these tokens is what ascribes the crypto platform with a value. How a token behaves and is affected on the market is what most would understand as tokenomics. In this article, we’ll look at the market behaviour of three tokens in particular, belonging to that of Ripple (XRP), Pepe Coin (PEPE) and DogeMiyagi (MIYAGI).
Firstly, we should probably explain what tokenomics means! It’s a term that encapsulates a token’s economics by explaining the variables that affect a token’s use and value. This includes the token’s creation and distribution, its supply and demand, and any token burn schedules or incentive mechanisms that it may have.
DogeMiyagi’s Tokenomics Are Crucial To Its Success
DogeMiyagi is the new meme coin that is catching attention. Drawing inspiration from the honourable and loveable Mr Miyagi from the iconic Karate Kid films, it is looking to establish itself in the meme coin market and eventually take over. For it to do that it needs to have good tokenomics that investors can believe in. So, let’s have a rundown of what DogeMiyagi’s tokenomics is about and see what we’ve got here!
The MIYAGI token is at the heart of its ecosystem and at first glance is a very promising token. It enables excellent cross-border payments and is the currency for acquiring and trading DogeMiyagi’s exciting NFTs. The MIYAGI token governs the entire network and keeps the platform functioning. It possesses rapid token swaps that are conducted with minimal interruptions which means that users do not have to suffer through slow transactions.
Will The PEPE Token Have Any Use For Investors?
Pepe (PEPE) is another meme coin that has been catching attention and sits inside the top 100 cryptocurrencies on CoinMarketCap. As ever with meme coins, it is able to generate a lot of excitement in short bursts but take a deeper look at its tokenomics and you might rethink whether it’s a good investment.
Pepe is very easy to acquire. Right now it’s trading for somewhere near $0.000001434 on the market. This might mean that it’s easy to buy but the risk then is that there is little value in holding it for those who have bought it. This is made truer when one considers the gigantic circulating supply of PEPE tokens in the market, currently standing at around 391,790,000,000,000. This means that it’s very unlikely to reach a dollar on the market and the sheer size of its supply of circulating tokens will most likely prevent such a scenario.
Of course, token burning would lead to an increase in price by reversing the supply-and-demand imbalance that currently exists, but right now, it’s difficult to ascertain whether the tokenomics of PEPE is something that it should be pursuing for the long-term future.
XRP’s Tokenomics Has Been Serving Excellence
XRP was created to make international transactions faster and cheaper. Unlike Bitcoin and Ethereum, which have a limited supply, XRP has a maximum supply of 100 billion tokens. Ripple, the company behind XRP, uses a system called the XRP Ledger to validate transactions, making it very efficient.
One interesting thing about XRP’s tokenomics is that it’s designed to be deflationary. Every time a transaction is made, a small fee called a “burn fee” is taken out of circulation. This reduces the total number of XRP tokens available over time. As more people want to use XRP, this deflationary model could make it more valuable because there would be fewer tokens around.
Ripple owns most of the XRP tokens, and a big chunk of them are held in escrow. This has led to debates about how decentralized the Ripple ecosystem really is and how much control the company has. However, Ripple has been working on being more transparent and reducing its influence over XRP’s tokenomics.
In summary, XRP’s tokenomics are unique in the world of digital assets. The deflationary mechanism, along with Ripple’s efforts to be more transparent, has made XRP a major player in cross-border payments. As the fintech industry continues to adopt blockchain technology, XRP’s tokenomics could have a big impact on the future of global transactions.
For more about DogeMiyagi:
Website: https://dogemiyagi.com
Twitter: https://twitter.com/_Dogemiyagi_
Telegram: https://t.me/dogemiyagi
