Business

Top Three Token Distribution Models Shaping Crypto

Published

2 years 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

First wind turbine components arrive as LNG project moves ahead

Published

8 hours ago

December 4, 2025

Tom Sinclair

THE FIRST ship carrying major components for Dragon LNG’s new onshore wind turbines docked at Pembroke Port last week, marking the start of physical deliveries for the multi-million-pound renewable energy project.

The Maltese-registered general cargo vessel Peak Bergen berthed at Pembroke Dock on Wednesday 26^th November, bringing tower sections and other heavy components for the three Enercon turbines that will eventually stand on land adjacent to the existing gas terminal at Waterston.

A second vessel, the Irish-flagged Wilson Flex IV, has arrived in Pembroke Port today (Thursday) carrying the giant rotor blades.

The deliveries follow a successful trial convoy on 25 November, when police-escorted low-loader trailers carried dummy loads along the planned route from the port through Pembroke, past Waterloo roundabout and up the A477 to the Dragon LNG site.

Dragon LNG’s Community and Social Performance Officer, Lynette Round, confirmed the latest movements in emails to the Herald.

“The Peak Bergen arrived last week with the first components,” she said. “We are expecting another delivery tomorrow (Thursday) onboard the Wilson Flex IV. This will be blades and is currently showing an ETA of approximately 03:30.”

The £14.3 million project, approved by Welsh Ministers last year, will see three turbines with a combined capacity of up to 13.5 MW erected on company-owned land next to the LNG terminal. Once operational – expected in late 2026 – they will generate enough electricity to power the entire site, significantly reducing its carbon footprint.

The Weather conditions were favourable for the arrival of the Wilson Flex IV, which was tracking south of the Smalls at midnight.

The abnormal-load convoys carrying the components from the port to Waterston are expected to begin early next year, subject to final police and highway approvals.

A community benefit fund linked to the project will provide for residents in nearby Waterston, Llanstadwell and Neyland.

Further updates will be issued by Dragon LNG as the Port of Milford Haven as the delivery programme continues.

Photo: Martin Cavaney

Business

Cardiff Airport announces special Air France flights for Six Nations

Published

12 hours ago

December 4, 2025

Tom Sinclair

Direct services to Paris-Charles de Gaulle launched to cater for Welsh supporters, French fans and couples planning a Valentine’s getaway

CARDIFF AIRPORT and Air France have unveiled a series of special direct flights between Cardiff (CWL) and Paris-Charles de Gaulle (CDG) scheduled for February 2026.

Timed to coincide with two major dates — the Wales v France Six Nations clash on Saturday 15 February and Valentine’s weekend — the flights are designed to offer supporters and holidaymakers an easy link between the two capitals.

For travelling French rugby fans, the services provide a straightforward route into Wales ahead of match day at the Principality Stadium, when Cardiff will once again be transformed by the colour, noise and passion that accompanies one of the tournament’s most eagerly awaited fixtures.

For Welsh passengers, the additional flights offer a seamless escape to Paris for Valentine’s Day, as well as opportunities for short breaks and onward travel via Air France’s wider global network.

Cardiff Airport CEO Jon Bridge said: “We’re thrilled to offer direct flights to such a vibrant and exciting city for Valentine’s weekend. Cardiff Airport is expanding its reach and giving customers fantastic travel options. We’ve listened to passenger demand and are delighted to make this opportunity possible. There is more to come from Cardiff.”

Tickets are already on sale via the Air France website and through travel agents.

Special flight schedule

Paris (CDG) → Cardiff (CWL):

13 February 2026: AF4148 departs 17:00 (arrives 17:30)
14 February 2026: AF4148 departs 14:00 (arrives 14:30)
15 February 2026: AF4148 departs 08:00 (arrives 08:30)
15 February 2026: AF4150 departs 19:40 (arrives 20:10)
16 February 2026: AF4148 departs 08:00 (arrives 08:30)
16 February 2026: AF4150 departs 16:30 (arrives 17:00)

Cardiff (CWL) → Paris (CDG):

13 February 2026: AF4149 departs 18:20 (arrives 20:50)
14 February 2026: AF4149 departs 15:20 (arrives 17:50)
15 February 2026: AF4149 departs 09:20 (arrives 11:50)
15 February 2026: AF4151 departs 21:00 (arrives 23:30)
16 February 2026: AF4149 departs 09:20 (arrives 11:50)
16 February 2026: AF4151 departs 17:50 (arrives 20:20)

Business

Cwm Deri Vineyard Martletwy holiday lets plans deferred

Published

19 hours ago

December 4, 2025

Bruce Sinclair - Local Democracy Reporter

CALLS to convert a former vineyard restaurant in rural Pembrokeshire which had been recommended for refusal has been given a breathing space by planners.

In an application recommended for refusal at the December meeting of Pembrokeshire County Council’s planning committee, Barry Cadogan sought permission for a farm diversification and expansion of an existing holiday operation through the conversion of the redundant former Cwm Deri vineyard production base and restaurant to three holiday lets at Oaklea, Martletwy.

It was recommended for refusal on the grounds of the open countryside location being contrary to planning policy and there was no evidence submitted that the application would not increase foul flows and that nutrient neutrality in the Pembrokeshire Marine SAC would be achieved within this catchment.

An officer report said that, while the scheme was suggested as a form of farm diversification, no detail had been provided in the form of a business case.

Speaking at the meeting, agent Andrew Vaughan-Harries of Hayston Developments & Planning Ltd, after the committee had enjoyed a seasonal break for mince pies, said of the recommendation for refusal: “I’m a bit grumpy over this one; the client has done everything right, he has talked with the authority and it’s not in retrospect but has had a negative report from your officers.”

He said the former Cwm Deri vineyard had been a very successful business, with a shop and a restaurant catering for ‘100 covers’ before it closed two three years ago when the original owner relocated to Carmarthenshire.

He said Mr Cadogan then bought the site, farming over 36 acres and running a small campsite of 20 spaces, but didn’t wish to run a café or a wine shop; arguing the “beautiful kitchen” and facilities would easily convert to holiday let use.

He said a “common sense approach” showed a septic tank that could cope with a restaurant of “100 covers” could cope with three holiday lets, describing the nitrates issue as “a red herring”.

He suggested a deferral for further information to be provided by the applicant, adding: “This is a big, missed opportunity if we just kick this out today, there’s a building sitting there not creating any jobs.”

On the ‘open countryside’ argument, he said that while many viewed Martletwy as “a little bit in the sticks” there was already permission for the campsite, and the restaurant, and the Bluestone holiday park and the Wild Lakes water park were roughly a mile or so away.

He said converting the former restaurant would “be an asset to bring it over to tourism,” adding: “We don’t all want to stay in Tenby or the Ty Hotel in Milford Haven.”

While Cllr Nick Neuman felt the nutrients issue could be overcome, Cllr Michael Williams warned the application was “clearly outside policy,” recommending it be refused.

A counter-proposal, by Cllr Tony Wilcox, called for a site visit before any decision was made, the application returning to a future committee; members voting seven to three in favour of that.