kaal:claim:4900878-022

Supply side mechanisms such as token burns, which permanently remove tokens from circulation, and staking, which locks tokens up in exchange for rewards, let a token economy balance supply and demand and thereby sustain stable growth.

Source quote, verbatim

By carefully designing these incentives, token economies can balance supply and demand, ensuring stable and sustainable growth.

From

Wulf A. Kaal, Quantum Economy and Tokenomics (2024), 5.2.1 Economic Incentive Designs, p. 41
https://ssrn.com/abstract=4900878 · source PDF

Cite as

Wulf A. Kaal, Quantum Economy and Tokenomics (2024). SSRN: https://ssrn.com/abstract=4900878

Holds when

requires deliberate calibration of the incentive parameters

Classification

designsupport: assertedtokenomicsrisk-and-incentives

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