Important Notice: I recommend to those who want to learn about our ecosystem to read our white paper. It will provide you a very depth look at our ecosystem.

It is vividly clear with the emergence of cryptocurrency over the last few years that digital assets can actually be used for so much more than just displacing the fiat currencies already in existence.

Digital assets can be used for example to:

Provide access to Dapps (decentralize applications) Signify ownership Lowering the entry of barrier to financial ecosystems Tokenization of Assets

Due to various use cases, digital assets and its underlying technology have the potential to create entirely new economic structures that have never existed before. The features of each Token vary as you will soon learn how we are utilizing the ERA Token for our ecosystem.

Understanding the basic knowledge of token economics as the underlying framework of Cryptocurrencies can teach you to determine the projects that can be regarded as solid.

In this article, we will basically analyze the dynamics of token economics and give you the basic insight that will help you understand the token behind ETHA and possibly any of your desired cryptocurrency.

Overview Of Token Economics

Token economics generally refers to the immense studying, designing, and operation of economic structures that are strictly based on the technology of blockchain. Each blockchain platform and blockchain operation makes use of its own economic model.

The topic of token economics has a strict focus on the initial economic models that are new and built through cryptocurrencies. This does not include tokens that are exclusively used for fundraising, and it has no important role to play in the platform as they are not stroked as new models.

Token securities have been available for some time, and their dynamics have been well understood over time. Although, blockchain and cryptocurrencies can enable a more powerful way to deal with securities when it comes down to ownership and transferability.

An assumption on which almost all the models of the token economics stand on is that humans behave based on incentives. This stand is however based on the incentive hypothesis.

It is a human behavioral thesis that assumes actions are inspired by an appeal for incentives. For token economics, the incentives are the tokens. They are basically used to engage the communities of a network to behave accordingly to benefit from the same network.

It is worthy to note that these incentives are basically monetary because tokens can have monetary value if traded on exchanges.

Benefits Of Token Economics

When a project decides to create a Token, they should always develop an economic model for the utilization of their Token.

Generally speaking, Tokens are used for value exchange. This is the basic usage for digital assets.

To make sure that the system of a blockchain or its application operates efficiently and keeps advancing, tokens are utilized. And since there is no central authority in most cases, tokens are important for the existence and growth of a decentralized platform.

Our value strategy for the ERA token features multiple mechanisms to stimulate its growth.

Our Token has various purposes beyond a speculative asset on an exchange, and this includes but is not limited to;

● Exchange Fees

● Transaction fees for remittance services

● Collateral on the lending platform

● Discount on fees

● Listing fees for the exchange

● Future exclusive services

We capped the total supply of our tokens at 1,000,000,000.

To Wrap It Up

Since we are still in the inception stage of the era of Blockchain technology and the majority of projects and its Dapps are not being utilized fully, for now, the vital question is if token/coins will be still utilized in spite of the highly speculated environment we are currently in.

We are still getting prepared, but there is already an increased number of diverse token economic models.

See you with the next articles and updates.

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