By Nicholas Walter | Updated: 12 September 2024
Binance Announces New Feature to Onboard Global Users onto Tokenomics as the cryptocurrency giant continues to expand its services portfolio to maintain its competitive edge and stay ahead in what has undoubtedly become a very competitive market.
The exchange unveiled a new ‘token unlock and vesting timeline’ function on Thursday, September 12, claiming it will increase user accessibility and transparency in tokenomics. Binance’s head of regional markets, Vishal Sacheendran, stated that the features intended to improve trade for the company’s more than 210 million global users.
Understanding Tokenomics Binance’s New Feature
Tokenomics is derived from the fusing of the words “token” and “economics,” which refers to the economic design and structure of a cryptocurrency or blockchain-based project. It encompasses the factors influencing a token’s value, utility, and behavior within its ecosystem. Since it outlines the creation, distribution, and long-term management of tokens, tokenomics is an essential component of blockchain projects.
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Tokenomics’ essential components include:
The relationship between supply and demand
The maximum quantity of tokens that can ever be produced.
Circulating Supply: The quantity of tokens that are presently in use and exchangeable.
Deflation/Inflation: The gradual reduction of the supply (deflationary) or introduction of additional tokens (inflationary) over time.
Utility
What the token is used for, including transaction fees, staking (locking tokens to sustain network operations), voting on protocol updates for governance, or access to services within the project’s ecosystem.
Distribution
The initial distribution of tokens, including airdrops, mining incentives, staking rewards, and initial coin offerings (ICOs). It also includes vesting periods for team members or early investors, which have an impact on the token’s price and supply.
Incentives
the incentives for mining or staking that are intended to incentivize users to participate in the network.
Governance
The part token holders play in the blockchain project’s decision-making procedures. Certain tokens allow owners to vote on important project updates or changes.
Mechanisms of Burning
Token-burning techniques are employed by certain projects in an attempt to decrease supply and maybe raise demand. This involves removing a part of tokens from circulation permanently.
Marketability and Liquidity
How simple it is to trade the token on exchanges and whether there is enough liquidity to allow for trading. Greater liquidity can draw in more investors and lessen volatility.
Investors and users can better comprehend a blockchain project’s long-term viability and economic behavior by using tokenomics. It can reveal information about the network’s stability, potential for value growth, and overall health.
Binance Announces New Feature
Binance has simplified these insights with its most recent addition, making them conveniently accessible next to the cryptocurrency names. Important information such as the amount of each token in circulation, the percentage of locked and unlocked tokens, impending unlock dates, and a countdown timer are now visible to users. Now, the Binance website has all of this information displayed.
Binance and CoinMarketCap, a well-known platform for tracking the price of cryptocurrency assets, have partnered to provide this feature.
“Token unlocking and vesting refer to the scheduled release of a specific volume of tokens into the open market over a set period. This approach offers predictability and transparency for market participants.” Binance explained in an explanation of the idea.
Rollout Details
Although the precise release date has not yet been disclosed, the details are now accessible on Binance’s official website and will soon be available on the mobile app.
Vishal Sacheendran added “Our Token Unlock and Vesting Schedule is a first for any crypto exchange. It’s a highly intuitive feature that equips our users with additional information to enhance their experience on the platform,”
This project is in line with DYOR (Do Your Own Research), a crucial piece of advice given by crypto analysts. With more than 2.4 million cryptocurrencies in circulation worldwide, experts constantly advise investors to do extensive due diligence on the tokens they intend to purchase.
