For the uninitiated, tokenomics is similar to a business model. William Mougaya defines a token as
A unit of value that an organization creates to self-govern its business model, and empower its users to interact with its products, while facilitating the distribution and sharing of rewards and benefits to all of its stakeholders.
Wagerr introduces WGR a utility token and the native currency of the Wagerr Blockchain. WGR is not just a “currency", Wagerr has engineered an economy centred on the WGR coin. The key to the economy's design has been the structuring of incentives to reward and maintain behaviors that add value to the Wagerr network, and devising subsystems that translate the Wagerr network value to the WGR token value.
Cryptocurrencies like WGR have value fundamentally because of supply and demand forces. The design of Wagerr tokenomics is quite simple in principle and focuses on both forces:
- 1.Create demand for WGR by creating a product that has strong utility
Demand for Wagerr comes from having a product with a strong value proposition. The reduction of supply of WGR comes from the network operating effectively. Demand for Wagerr drives upward price pressure on WGR whilst supply pressure creates scarcity. It is the combination of demand for the product and the reduction of WGR in the market through interaction with the protocol that gives WGR value. Simply, the value of WGR is coupled to the network value.