Business

Top Three Token Distribution Models Shaping Crypto

Published

6 months ago

May 22, 2024

Tokenomics, the economic model behind cryptocurrency tokens, plays a pivotal role in their distribution and success. In this article, we explore the top three tokenomics models that have revolutionized the way tokens are distributed in the crypto space. Explore essential token distribution models with bitcoinsystem.app, where educational experts elucidate complex crypto mechanisms.

Fixed Supply Model

The fixed supply model is a foundational concept in the realm of tokenomics, particularly in the cryptocurrency space. This model entails establishing a predefined limit on the total supply of tokens that can ever be created or circulated within a blockchain ecosystem. The purpose behind implementing a fixed supply model is to imbue the tokens with a sense of scarcity, akin to finite resources in the physical world, which can potentially drive up their value over time.

One of the most notable examples of a cryptocurrency that employs the fixed supply model is Bitcoin, with its total cap set at 21 million coins. This limitation on the supply of Bitcoin plays a crucial role in its value proposition, as it positions the cryptocurrency as a digital alternative to traditional stores of value, such as gold.

Projects that opt for the fixed supply model often do so with the goal of creating a deflationary asset that can serve as a hedge against inflation and economic instability. However, while the fixed supply model can create a sense of scarcity and value appreciation, it also presents challenges.

For instance, the initial distribution of tokens must be carefully managed to ensure fairness and prevent hoarding. Additionally, the long-term sustainability of the project relies heavily on factors such as adoption, network security, and governance.

Inflationary Model

The inflationary model in tokenomics is a concept where the total supply of tokens increases over time. This is typically achieved by periodically adding new tokens to the circulating supply through mechanisms such as mining rewards or staking rewards. Unlike traditional inflation, where an increase in the money supply can lead to a decrease in purchasing power, the inflationary model in tokenomics is often used to incentivize network participation and secure the blockchain.

One of the key benefits of the inflationary model is its ability to provide ongoing incentives for users to participate in the network. By rewarding users with newly minted tokens, the inflationary model can encourage activities such as mining, staking, or providing liquidity. This can help ensure the network remains secure and functional, even as it grows in size and complexity.

However, the inflationary model also presents challenges. One of the main concerns is the potential for inflation to decrease the value of existing tokens. If the rate of token issuance outpaces the rate of adoption and use, it can lead to a decrease in token value over time. Projects using an inflationary model must carefully balance the need for incentives with the risk of devaluing the token.

Deflationary Model

The deflationary model in tokenomics is a strategic approach aimed at reducing the total supply of tokens over time. This is typically achieved through mechanisms such as token burning, where tokens are permanently removed from circulation. The goal of the deflationary model is to create scarcity and increase the value of each token, potentially leading to a more stable and valuable ecosystem.

One of the key advantages of the deflationary model is its ability to incentivize early adoption and long-term holding of tokens. As the total supply of tokens decreases, the remaining tokens become more scarce, which can drive up their value. This can create a positive feedback loop where increasing token value incentivizes holders to retain their tokens, further reducing the supply and increasing value.

However, the deflationary model also presents challenges and risks. One of the main concerns is the potential impact on liquidity. As the supply of tokens decreases, it can become more difficult to buy and sell tokens, leading to increased price volatility. Additionally, the deflationary model requires careful management to ensure that token burning does not occur too rapidly, which could lead to a sudden decrease in supply and a corresponding increase in price.

Projects implementing a deflationary model must carefully balance the benefits of token scarcity and value appreciation with the need for a stable and liquid market. This often requires implementing mechanisms to control the rate of token burning and ensure a steady and predictable decrease in supply over time.

Conclusion

In conclusion, understanding and implementing effective tokenomics models are crucial for any cryptocurrency project’s success. Whether it’s a fixed supply model, an inflationary model, or a deflationary model, choosing the right tokenomics strategy can significantly impact a project’s adoption and longevity in the market.

Business

Upgrades completed at Port of Milford Haven’s simulator suite

Published

3 days ago

November 14, 2024

Tom Sinclair

UPGRADES have been completed to state-of-the-art equipment within the Port of Milford Haven’s navigation simulator suite at Milford Waterfront enabling marine professionals to receive bespoke specialist training. The virtual reality simulation system can safely replicate a range of scenarios that seafarers may experience in real world situations such as extreme weather conditions, emergency situations and escort tug work.

The upgrades provided by Netherlands-based company MARIN contain the latest hardware in terms of processing power and graphics, as well as upgrades to MARIN’s ‘Dolphin’ software, increasing the capability to create scenarios. These are complemented with new 4k visuals on 75” screens which increase the depth and field of vision, adding to the realism.

Recently, a training day was led by Training Pilot Captain Mark Johnson, assisted by ex-Pilot Andy Hillier, involving members of the Svitzer team as well as Pilots Matt Roberts and Ian Coombes. As part of the scenario, they were faced with a loss of engine power and steering along with worsening weather and sea conditions. The Pilots had to communicate with Svitzer in order to successfully instruct them on how to tow and direct a drifting tanker. While scenarios like these are uncommon within port operations, it is important to rehearse procedures that would be implemented if they are required and enhances participants’ skill sets.

Marine Pilot and Simulator Instructor, Captain Ewan McNicoll, said “This simulator suite has future proofed our training capabilities, both internally for Pilots and marine staff, but also externally for clients wishing to use the facility, be it for training purposes or research and development. We can create any type of scenario with any type of ship, ranging from practicing ship handling manoeuvres to emergency situations, it really is game changing! Working with our partners at MARIN has been a complete success and I am very proud of our new facility.”

For more information about training at the navigation simulation suite please contact the Port of Milford Haven at [email protected] or 01646 696100.

Business

Thousands of homes in rural Wales gain from faster 4G boost

Published

3 days ago

November 14, 2024

Tom Sinclair

RURAL Wales is seeing a major upgrade in mobile connectivity, with faster 4G now live in several areas. Seven locations across North, South West, and West Wales are benefitting from new 4G mast upgrades funded by the UK Government’s Shared Rural Network (SRN), aimed at closing the digital gap between rural and urban areas.

The upgrades, which went live on Thursday (Nov 14), bring improved 4G coverage to communities including Bontddu, Llanelltyd, Llanarmon Dyffryn Ceiriog, Penmaenpool, Tabor, Snowdonia National Park, and Bontgoch. Local businesses, emergency services, and residents are expected to benefit from faster internet access, which supports daily communication, business opportunities, and economic growth.

***There is a £170 million agreement with Openreach to provide gigabit-capable broadband to 70,000 remote Welsh properties***

Technology Secretary Peter Kyle said: “Fast, reliable connectivity is essential for modern life and should be available from Cardiff to the remotest parts of Wales. Today’s upgrades bring us closer to making this a reality.”

SUPPORTING DIGITAL INCLUSION

As part of the rollout, Peter Kyle and Telecoms Minister Sir Chris Bryant visited Ebbw Vale to discuss digital inclusion with charity and industry leaders. They met with representatives at BGfm, a digital inclusion hub in Blaenau Gwent, to learn about how connectivity impacts daily life in Welsh communities.

Telecoms Minister Bryant said: “We are working tirelessly to make sure rural communities aren’t left behind online.

“These upgrades mean businesses can now operate without connectivity limitations, 999 services are better equipped to respond, and residents and tourists can stay connected across the Welsh countryside.”

ADDRESSING CONNECTIVITY GAPS

An estimated 1.5 million homes across the UK remain without internet access, limiting people’s ability to access essential services such as banking and healthcare. In addition to the SRN upgrades, the Chancellor has allocated over £500 million in next year’s budget for digital infrastructure expansion, targeting these underserved areas.

Welsh Secretary Jo Stevens highlighted the importance of this investment, particularly for rural Wales, where fast, reliable internet can be transformative.

“Connectivity is critical for day-to-day life in rural areas – from supporting local businesses to ensuring emergency services are just a call away,” Stevens said.

The upgraded masts, previously limited to EE customers and emergency 999 calls, now serve a wider user base, bringing essential internet access to more people without requiring new infrastructure.

Ben Roome, CEO of Digital Mobile Spectrum Limited, said: “With the activation of five new SRN sites, Wales is seeing the tangible benefits of the Shared Rural Network, bringing crucial connectivity to rural communities.”

GOVERNMENT INVESTMENT IN REMOTE WALES

The improvements come alongside a £170 million agreement with Openreach to provide gigabit-capable broadband to 70,000 remote Welsh properties, helping future-proof digital access in even the most isolated locations.

The latest upgrades mark another step in the Government’s mission to improve mobile coverage and close the connectivity gap across Wales, creating opportunities and supporting economic growth across rural communities.

Business

Pembrokeshire Coast National Park Authority invites businesses to advertise in mag

Published

3 days ago

November 14, 2024

Tom Sinclair

As 2024 comes to a close, Pembrokeshire Coast National Park Authority is encouraging local businesses to prepare for the year ahead by reserving advertising space in Coast to Coast, Pembrokeshire’s highly regarded, award-winning visitor magazine.

Launching its 43rd edition in Easter 2025, Coast to Coast provides a prime opportunity for businesses to reach a wide audience, with a readership exceeding one million people.

The bilingual publication, distributed across Pembrokeshire’s busiest locations and parts of Carmarthenshire and Ceredigion during peak tourism months, is a valuable resource for both visitors and residents. From unique products and delicious offerings to exciting experiences, businesses of all types can benefit from the exposure Coast to Coast offers. The magazine is available in hundreds of outlets countywide and has become an essential guide for anyone looking to explore the best of Pembrokeshire.

“Over the years, Coast to Coast has established itself as the must-have summer guide, packed with inspiration for exploring the Park,” said Marie Parkin, Head of Marketing and Communications for the Authority. “In addition to showcasing our visitor attractions such as Carew Castle and Tidal Mill, Castell Henllys Iron Age Village and Oriel y Parc, National Park Discovery Centre, the magazine includes practical information like maps, bus schedules and tide tables.”

“From scenic walks and beach days to rich insights into the Park’s heritage, culture, and wildlife, Coast to Coast offers something for everyone. Our Activities and Events listings ensure families can enjoy a full calendar of experiences,” Marie Parkin added.

With advertising deadlines set for early January 2025, businesses are encouraged to act swiftly to secure their spot and avoid disappointment.

For more information about advertising in Coast to Coast, please contact [email protected] or call 01646 624895.