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Token economy
A token economy in crypto space refers to the system of crypto assets used within a specific blockchain ecosystem. These tokens serve various purposes, including representing ownership, granting access to services, incentivizing participation, and facilitating transactions.
- They can be utility tokens with specific functions, incentivize behaviors, represent real-world assets, enable fundraising through token sales, support interoperability across blockchains, and provide governance and voting rights.
- Token economies are designed to create value, incentivize engagement, and foster growth in blockchain projects, aligning the interests of stakeholders and promoting the adoption of cryptocurrencies within their respective ecosystems.