What is tokenomics and why does it matter to you? More importantly, what does it even mean? By using BTZ, Bitazza Global utility token as an example, we’ll explain what is tokenomics, how it’s driven by Bitazza holders and stakers, as well as several keywords you should familiarize yourself with.
Tokenomics is the portmanteau of token and economics, which refers to the token’s use and value, as well as distribution, supply and demand, and how all these factors impact the token’s economics.
Utility: the BTZ token fuels the entire Bitazza ecosystem which includes all our products and services worldwide.
Token allocation: the percentages of a token that gets allocated for specific purposes. BTZ allocates 50% of its token towards community building and ecosystem incentives across all markets including Thailand. Allocations such as local partnerships outside of Thailand can be determined by Bitazza’s management, or subsequently, a DAO-based decision making body that votes on such decisions.
Distribution: Bitazza’s global expansion covers developing economies that represent lucrative, readily evident opportunities with high crypto adoption rates but inadequate traditional banking infrastructures. Target developed economies on the other hand, represent the pioneering nations in the crypto space with accommodating policies, high-income levels, and competitive market structures. These factors weigh into how much BTZ is allocated to a particular market.
Elimination: Removing tokens from circulation is also a crucial part of tokenmics. Bitazza introduced a new model called “The Redistribute and Signal model” as it takes BTZ utility tokens received as payment for Freedom Wallet subscriptions and redistributes them to those who would both create value for the network and credibly signal their confidence in it. As the exchange platform and related ecosystem grow, we would utilize a portion of the trading commission and transaction revenues to purchase BTZ for the same purpose. Thus, the model is one of redistribution and signaling, which would eventually evolve to encompass a buyback element.
Staking: one way to earn extra without doing anything. Staking allows users to lock their BTZ holdings for a period of time and earn interest on them. Staking campaigns are now accessible to people who believe in BTZ and our long-term growth.
Bitazza currently has two open staking campaigns, at up to 6% APY for 365 days, as well as the Freedom Card. Read more at https://www.freedom.cards/
Disclaimer: Digital assets involve risks; investors should study information carefully and make investments according to own risk profile. BTZ token is developed by Bitazza group company. Thus there could be potential conflicts of interest. Bitazza Global is not the regulated entity by Thai SEC
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