Cryptocurrency Tokenomics : Some of what we have learned so far.

Source Article

This is a very insightful article, which summarizes what I think are accurate observations of the Steem-Engine micro cryptocurrency economy. All the points were well summarized and our current, understanding of the forces at work. Article

We have seen large airdrops of free coins and mass selling of free coins from initial airdrops exert extreme selling pressure with many tribes losing half their value the first week. Then we saw large rewards to content creators turn into large sells exerting further downward pressure on coin prices with further loss of coin value. We have seen modifications of large airdrops to smallesr airdrops, and attempts to air drop to historical Hodlers and long term investors only with varying success. We also have seen creative use of coin sinks and coin burnings.

We have seen some successful application with significant improvements in coin value. Steemleo has been a particularly good example of the coin value improvements previously mentioned above.

Missing from the article and worthy of mention is the Steemcoinpan tribe coin, which has been so successful that it’s valuation is greater the Steems. In my opinion Steemcoinpan coin is a good example of the power of community and size. Little is known by me about the coin other then the reveal at Steemfest. The large numbers of coin hodlers, posters and routinely liquid coin with neither significant buying or selling pressure with consistent upward trajectory of coin price currently above its initial offering serves as an example to other communities that a large community and a large number of HODLing community members seems to provide price stability and appreciation. There is much more to learn I am sure, but currently and sadly it’s hidden behind a language barrier.

Realistically we are all learning here, but we can benefit from knowing how the existing tribes were started and what effect certain decisions have had on their price. It also shows that despite the value of the project or strength of its community selling pressure lowers prices universally in markets with so few participants. It’s a math principle which isn’t a value judgement on the projects it’s simply 1+1= 2 and nothing more.

All members of both the Steemit community and the Tribes should internalize this principle and keep the faith with their projects if they think it is well deserved.

Happy Hodling Stronghands 💪

✍️ written by Shortsegments

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