# Tokenomics Related Articles

HTX News Center provides the latest articles and in-depth analysis on "Tokenomics", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

Airdrops Rewarded 'Farmers' but Killed the Real Community

Token airdrops, intended to build communities, have instead become mechanisms that train users to extract maximum value and exit quickly. This outcome stems from design flaws in the 2021–2024 token distribution model: low float, high fully diluted valuations, points programs that reward activity over intent, and eligibility rules easily reverse-engineered by those with time and scripting skills. As a result, rational behavior shifted to mass wallet creation, simulated engagement, and immediate selling. Points programs exacerbate this issue, turning participation into a resource-intensive competition that marginalizes genuine users. Teams are aware of wallet clustering and disproportionate token accumulation but continue the model for short-term growth. Consequently, airdrops lose credibility, with significant supply reserved for immediate sell-offs at launch. In response, token sales and ICOs are returning—not out of nostalgia but as a structural correction. New distribution methods incorporate screening mechanisms like identity and reputation signals, on-chain behavior analysis, jurisdictional limits, and allocation caps. These aim to distribute tokens to long-term users rather than mercenaries. This shift highlights a tension between permissionless ideals and practical needs for access control. Privacy-preserving identity systems are becoming essential infrastructure to verify user attributes without exposing identities, avoiding a binary choice between open but exploitable systems and restrictive ones. Wallet limitations—fragmentation, weak recovery, blind signing, and browser-based vulnerabilities—also contribute to these challenges. Forward-thinking teams are integrating identity, wallet, and token distribution into a cohesive system where users can prove uniqueness without revealing identity and maintain control without fragile private keys. The goal is not exclusivity but better alignment: fewer committed participants are more valuable than many indifferent ones. Projects aligned with human values show better retention, governance engagement, and market resilience. Successful teams will treat token distribution as infrastructure, design for adversarial environments, use identity protectively, and embrace well-designed friction. The failure of airdrops lies not in user greed but in rewarding it. To grow beyond its current audience, crypto must stop training people to extract value and instead give them reasons to belong.

marsbit03/25 08:24

Airdrops Rewarded 'Farmers' but Killed the Real Community

marsbit03/25 08:24

Abandoning Token Issuance, Abolishing veBAL: Can Balancer's 'All-or-Nothing Gamble' Bring Renewal?

Balancer, a veteran DeFi protocol, is undergoing a radical transformation following a major $120M security breach in November 2025 that accelerated its existing financial decline. With annual revenue of just $290K against a $2.87M operational budget, its DAO treasury was on track to be depleted within four years. TVL plummeted from a peak of $3B to under $160M. On March 23, 2026, the core team proposed two major overhauls: a tokenomics reform and an operational restructuring. The key strategy shifts from token emission-driven growth to a sustainable, fee-based model. Operational changes include dissolving Balancer Labs, reducing the team from 25 to 12.5 full-time equivalents, and cutting the annual budget by 34% to $1.9M. The protocol will focus solely on its core products: Boosted Pools, a revamped reCLAMM, and LBPs, while maintaining deployments only on Ethereum, Gnosis, Arbitrum, and Base. Tokenomics reforms are more drastic: BAL token emissions will stop immediately, and the veBAL governance system will be abolished. All protocol fees will now go entirely to the DAO treasury, and V3 protocol fees are reduced from 50% to 25% to attract LPs. A $500K compensation fund is allocated for veBAL holders. A crucial exit mechanism is proposed: a 12-week window, opening one year after the vote, allowing BAL holders to burn their tokens for stablecoins at a Net Asset Value (NAV) of $0.16 per BAL. If fully utilized, this could burn 35% of the circulating supply. The team projects that these changes could boost annual DAO revenue to $1.22M and extend the treasury's runway to 9 years. However, this survival depends heavily on the success of the streamlined operations and core products. This high-stakes gamble aims to secure a sustainable future for the protocol.

marsbit03/24 08:49

Abandoning Token Issuance, Abolishing veBAL: Can Balancer's 'All-or-Nothing Gamble' Bring Renewal?

marsbit03/24 08:49

Balancer proposes sweeping overhaul to cut emissions, slash costs, and reset post-exploit strategy

Balancer has proposed a major overhaul of its protocol to shift from an incentive-driven model to a leaner, revenue-focused strategy. The plan includes immediately halting all BAL token emissions, phasing out the veBAL system, and redirecting 100% of protocol fees to the DAO treasury. A buyback program aims to repurchase up to 35% of the circulating BAL supply to counter historical dilution. The protocol will also narrow its focus to high-revenue products and reduce multi-chain deployments to cut costs. While the move may reduce TVL and increase centralization, it reflects a broader DeFi trend toward sustainable, revenue-based growth.

ambcrypto03/24 00:02

Balancer proposes sweeping overhaul to cut emissions, slash costs, and reset post-exploit strategy

ambcrypto03/24 00:02

TGE in a Bear Market: Is Backpack the Starting Point or the End?

Backpack, a prominent Solana ecosystem wallet and centralized exchange, conducted its TGE (Token Generation Event) for the BP token on March 23. The total supply is set at 1 billion tokens, with 25% (250 million) unlocked at TGE—24% for points holders and 1% for Mad Lads NFT holders. No team or investor tokens are in the initial circulation. The tokenomics are designed to prevent insider dumping: founders, employees, and investors receive no direct token allocation. Instead, the team’s share is held in a company treasury, locked until at least one year after a future IPO. Tokens are released based on key milestones like regulatory progress and product expansion. Users could claim tokens by completing TGE verification on Backpack platform. The project implemented strict anti-Sybil measures, including KYC and manual confirmation requirements, reclaiming over 50 million "fake points." Backpack introduced a staking-to-equity mechanism: users staking BP for at least one year can convert tokens into company shares, with 20% of equity allocated to stakers. Market predictions from Polymarket suggest an FDV between $100-200 million at launch, aligning with Backpack’s previous $120 million valuation. The project has raised $17 million in Series A funding and is reportedly negotiating a new round at a $1 billion pre-money valuation. Amid a bear market, Backpack’s TGE is a significant test of market confidence and project sustainability.

比推03/23 08:33

TGE in a Bear Market: Is Backpack the Starting Point or the End?

比推03/23 08:33

‘Quietly rebuilding momentum’ – Scaramucci backs Polkadot despite low network activity

Anthony Scaramucci, founder of SkyBridge, has turned bullish on Polkadot, citing key catalysts that are "quietly rebuilding momentum" for the blockchain. These include recent regulatory clarity from the SEC, which classified DOT as a digital commodity, and a major tokenomics update that hard-capped the supply at 2.1 billion tokens and cut annual emissions by 53%. The launch of the 21Shares Spot DOT ETF was also noted, though it has seen minimal inflows since debuting. Despite these developments, Polkadot's network activity has declined significantly over the past two years, with weekly active addresses dropping from 16,000 to 5,000. The tokenomics changes briefly boosted trader sentiment, leading to an 18% price rally, but positive momentum faded at the $1.65 resistance level. If macroeconomic uncertainty continues, DOT could retreat to $1.23. While Scaramucci highlights bullish factors, Polkadot's adoption remains weak, and it is unclear how quickly recent upgrades will reignite growth and lift the token's value.

ambcrypto03/22 06:38

‘Quietly rebuilding momentum’ – Scaramucci backs Polkadot despite low network activity

ambcrypto03/22 06:38

Five Emerging AI Cryptos With the Highest 2025–2027 Growth Momentum That Could Multiply Investor Capital 100×–300×

Artificial intelligence is reshaping industries, and AI-powered crypto platforms are emerging as high-growth investment opportunities. Among these, Ozak AI ($OZ) stands out as a leading contender, offering predictive analytics, risk assessment, and market insights through its decentralized intelligence platform. Currently in presale Phase 7 at $0.014, it targets a listing price of $1–$5, presenting potential returns of 100×–300× for early investors by 2027. Other notable AI crypto projects include Bittensor (TAO), Render Network (RNDR), NEAR Protocol (NEAR), and Ocean Protocol (OCEAN), each contributing to decentralized computation, data sharing, and AI model training. Early investment in utility-driven tokens like $OZ, which enables staking, governance, and data monetization, is emphasized for capitalizing on this technological shift.

TheNewsCrypto03/20 11:59

Five Emerging AI Cryptos With the Highest 2025–2027 Growth Momentum That Could Multiply Investor Capital 100×–300×

TheNewsCrypto03/20 11:59

From Singapore to Solana: Rebalancing Efficiency, Prosperity, and Cost

"From Singapore to Solana: Rebalancing Efficiency, Prosperity, and Cost" explores the governance of blockchain ecosystems through the lens of nation-building, drawing parallels between Singapore’s historical development and Solana’s evolution as a public blockchain. The article begins by comparing Singapore’s sudden independence in 1965 to Solana’s crisis following the collapse of FTX in 2022—both faced existential threats but leveraged unique advantages to survive. Singapore relied on its strategic geographic location, while Solana capitalized on its high throughput and low transaction costs. It traces Solana’s early dependence on FTX—akin to Singapore’s reliance on British military spending—and examines how both entities navigated periods of "grey" economic activity. For Solana, the meme coin boom (e.g., Bonk, WIF) served a similar role as Singapore’s early tolerance of ambiguous capital flows: attracting users, testing infrastructure, and sustaining economic activity during a downturn. The piece also analyzes token economics as monetary policy, comparing Singapore’s managed exchange rate system to Solana’s emission and burn mechanisms. It argues that dynamic, responsive monetary governance—rather than fixed tokenomics—is essential for long-term stability. Finally, it discusses community alignment using Singapore’s public housing system (HDB) as a model for incentivizing stakeholder commitment. Solana’s challenge is to unify diverse groups—speculators, developers, validators—by aligning their interests with the chain’s success. The conclusion emphasizes that blockchain competition is ultimately about governance: short-term narratives, mid-term technology, but long-term institutional and economic design. Solana, like Singapore, must transition from survival to sustainable, value-driven growth.

比推03/20 06:48

Reevaluating the Public Blockchain Ecosystem with the Logic of Governance: Examining Solana's Ecological Transformation through Singapore's Prosperity and Costs

This article draws a parallel between the development of the Solana blockchain and the nation-building journey of Singapore, arguing that managing a public blockchain is akin to governing a digital nation. The analysis is structured in six chapters. It begins by comparing Solana's initial heavy reliance on Sam Bankman-Fried and FTX for growth and credibility to Singapore's post-independence dependence on British military spending. The sudden collapse of FTX in 2022 is framed as Solana's pivotal crisis moment, forcing it to find a new path for survival, much like when Britain withdrew its forces from Singapore's sole innate resource was its strategic geographic location, which it leveraged to become a trade hub. Similarly, Solana's foundational resource is its high-performance architecture, enabling fast and cheap transactions, which is its competitive advantage for attracting users and developers. The article then examines a "grey" survival phase. Post-FTX, Solana experienced a boom in meme coin trading, facilitated by platforms like Pump.fun. This is compared to Singapore's pragmatic acceptance of capital from questionable sources during its early development to build its financial reserves and user base. The key insight is that while this activity was speculative and chaotic, it provided essential transaction volume, new adopters, and stress-tested the network's infrastructure, all while more substantial development continued underneath. A core section explores monetary policy. Singapore's unique approach of managing its economy through controlling its currency's exchange rate is presented as a model. The author argues that Solana's tokenomics, with its fixed inflation schedule and transaction fee burn mechanism, lacks a similar dynamic, responsive "central bank" governance model to intelligently adjust for different economic cycles on the chain. The concept of national unity is explored through Singapore's "HDB" public housing policy, which gave citizens a tangible asset stake in the country's success and enforced racial integration. For Solana, the community is fractured into distinct groups: speculators, builders, and validators. The article suggests Solana needs a more systematic "asset-binding" mechanism, like improved staking or airdrops, to better align the interests of these disparate groups and turn them into long-term stakeholders. Finally, the piece places Solana at a critical juncture, analogous to the end of Singapore's second phase of development. It has survived its crisis and leveraged a meme-driven phase for growth, but must now transition to a more mature, sustainable economy built on deeper fundamentals—such as robust governance, true decentralization, and valuable core applications—or risk being relegated as a mere "casino chain." The long-term competition between blockchains, the article concludes, will ultimately be determined by the quality of their governance.

marsbit03/20 06:17

Reevaluating the Public Blockchain Ecosystem with the Logic of Governance: Examining Solana's Ecological Transformation through Singapore's Prosperity and Costs

marsbit03/20 06:17

Crypto Morning Brief: Prediction Market Kalshi Raises Over $1 Billion, Block Recalls Some Laid-Off Employees

Crypto & AI Daily Digest **Key Market Events:** - The Bank of Japan kept its benchmark interest rate unchanged at 0.75%, as expected. - US initial jobless claims for the week of March 14 came in at 205,000, lower than the forecast of 215,000. **Major Funding & M&A:** - Prediction market platform Kalshi raised over $1 billion in a new funding round, doubling its valuation to $22 billion. - OpenAI is acquiring startup Astral to expand its presence in the programming sector. - Animoca Brands announced a strategic investment in AVAX and a partnership with Ava Labs to develop the Avalanche ecosystem, focusing on Asia and the Middle East. **Corporate News:** - **Meta** experienced a significant AI Agent malfunction, leading to a two-hour leak of sensitive company and user data. - **Block** (formerly Square) has quietly recalled some of the employees it laid off in February, with CEO Jack Dorsey admitting the decision may have been a mistake. - **Crypto.com** is cutting approximately 12% of its workforce as part of a company-wide push to integrate enterprise-level AI tools. - **Gemini** has reduced its headcount by about 30% this year and reported an annual loss of approximately $585 million. **Token & Ecosystem Updates:** - The Perle Foundation unveiled the tokenomics for its PRL token, with 37.5% allocated to the community. - Perpetual DEX edgeX has launched a page for its EDGE token airdrop, with claims open until April 1st.

marsbit03/20 01:13

Crypto Morning Brief: Prediction Market Kalshi Raises Over $1 Billion, Block Recalls Some Laid-Off Employees

marsbit03/20 01:13

Annual Revenue of Hundreds of Millions, Aggressive Buybacks: Why is Pump.fun Still Being 'Shorted' by the Market?

Despite circulating rumors, on-chain evidence and multiple independent data sources (DeFiLlama, Dune, and verifiable wallet transactions) confirm that Pump.fun's revenue and aggressive buyback program are legitimate. Over eight months, 99.5% of daily protocol revenue—totaling $328 million—was used to repurchase and burn 105.1 billion PUMP tokens, offsetting 29.52% of the circulating supply. Statistical analyses of the 747-day revenue data further validate its authenticity, showing expected patterns like weekend effects, autocorrelation, and structural breaks aligned with product updates. However, PUMP's valuation remains suppressed due to three key factors: its classification as a "sin stock" (98.6% of tokens launched on the platform are alleged scam "rug pulls"), trust issues (anonymous founders, discretionary buyback policy, and historical controversies), and insider selling pressure (notable wallets dumping tokens at market prices despite the buyback). While community token emissions will stop in July 2026—reducing monthly inflation from 10 billion to 9.2 billion tokens—current buybacks already absorb twice the new supply. The trust discount, rather than fundamentals, explains the undervaluation of a protocol generating $1.25 million in daily verifiable revenue.

marsbit03/19 10:12

Annual Revenue of Hundreds of Millions, Aggressive Buybacks: Why is Pump.fun Still Being 'Shorted' by the Market?