By Hello and welcome back to ‘Fun with Tokenomics: A Beginner’s Guide.’ You’ve made it this far, which means you’re serious about understanding the nuts and bolts of the crypto world. We’ve laid the groundwork, defining what tokenomics is and why it serves as the invisible hand guiding every blockchain project. Now, let’s take a deep dive into one of the most fundamental and impactful categories of digital assets: Layer 1 tokens.
In the modern digital economy, Layer 1 tokens are not just pieces of code — they are the foundations or the native cryptocurrencies of a blockchain network – the very backbone upon which everything else is built. Think Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA), Polkadot (DOT), Avalanche (AVAX), and so many more. Understanding their underlying economics is paramount because, in many ways, the success of the entire ecosystem hinges on the health and design of its Layer 1 token.
The Economics Behind Layer 1 Tokens
Fundamentally, a Layer 1 token serves multiple critical functions within its native blockchain….Read More
