Thoughts on Tokenomics

People often say Web3 without tokens/cryptos is the castrated version of Web3. Yet, as I dig deeper into the industry, the effect of tokenomics is actually very limited.

All ecosystems, regardless of defi or gamefi, are fundementally closed economies. Without introducing new money flows into the ecosystem, there is essentially no room for growth. No abnormal profit for existing users, which is equivalant to no high yields in defi. Unless it is some neccesity products that people cannot live without, such as lending and borrowing or swap. The same reason why only the DeFi 1.0 is the evergreen projects in the industry.

All other passing-fad projects are essentially benefiting from craze of the industry. People flooding into the crypto space creates numerous demand. New money keeps flooding into the ecosystem and becomes the high APY. Yes, the OHM craze is fundementally people paying for the high APYs they expect.

Anyway, for DeFi products, without tailoring themselves to satisfy specific customer needs, are just ponzi. Period.

Tokenomics, however complicated it might be, is about changing they way tokens circulating inside the ecosystem but not altering the stock of it. If not introducing refreshing inflows into the ecosystem, demand and supply of the token will enventually reach the same equilibrium. Simple economics 101. All branding techniques are just marketing campaign to allure new people into the ecosystem.