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Tokenomics is the study of token usage and the effects of a token’s design on its economics. It ensures that the project has a sustainable business model that will make it profitable in the long-term. A token that appreciates rewards early investors, makes the project richer, and ensures that long term viability of the whole endeavour. The objective of a good token economy is to create a system that benefits all parties involved, not just one party or group of parties. The equation of exchange connects the total value of an economy to the value of its coin.