Startup Funding Espresso – Ethereum Tokenomics

Ethereum Tokenomics

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

The Ethereum network is one of the largest blockchain networks available.

Here are the tokenomics for ETH, the token of the Ethereum network.

There are three constituents in the Ethereum community as follows:

Users who hold ETH are either investors or application users of the network.

Miners who process the transactions on the network which generate new ETH.

Stakers who invest funds in exchange for ETH to verify the transactions. 

Users pay a transaction fee to the miners and a tip fee to the stakers for the use of the network which decreases the supply of ETH.

Miners generate new ETH in exchange for processing transactions which increases the supply.

The tokenomics can be measured by reviewing the total number of active addresses holding Ethereum and the number of transactions.

The applications running on the Ethereum network also point to the strength of the chain.

Too much demand inflates the price of the token.

Too many new tokens generated deflates the price of the token.

A good tokenomics system keeps a balance between supply and demand achieving equilibrium.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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