ATOM Tokenomics - Currency Types Modeling in Markets
CONTEXT: Firstly, we express our gratitude to @effortcapital for their extensive research and the comprehensive post they shared ( link to the post ). The ongoing discussion about tokenomics is expected to take longer than anticipated. To strike an appropriate balance, we need to explore various technical and fundamental approaches. The community has already contributed interesting perspectives to this discussion. At Govmos (PRO Delegators validator governance branch), we plan to leverage our experience in traditional finance to propose our inflation modeling, aiming to enrich this discussion. We believe that examining existing “tradfi” (traditional finance) structures can offer valuable insights into their decentralized counterparts in the digital assets realm. ANALYSIS: First and foremost, we assert that comparing Cosmos to other decentralized “money” systems like Ethereum or Bitcoin is misleading. The confusion often arises from the distinction between money and value. Money is meant for spending, whereas value is meant for storage. For an asset to be considered a “store of value,” it must possess predictable scarcity and have limited use cases within the economy. In…
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