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What is Tokenomics?

Tokenomics (token economy or crypto economics); examines economic policies regarding the production and distribution of tokenized goods and services. 


Such developments have stimulated economic transactions that rely on tokens and do not require centralized intermediaries such as banks or large corporations.


Blockchain technology represents the attractive power of innovation on the internet of the future.


What is a Token?


Tokens are units of value issued by an organization, but more specifically in the context of tokenomics, they are built on an existing blockchain. Tokens have been rebranded with the advent of blockchain. Concert tickets, gym membership cards, and the type of driver’s license-style IDs are examples of tokens in the physical world that represent value with a more specific use case than currency.


Token Types


Before we introduce the basics of tokenomics, we need to know the complexities of tokens. The properties of tokens can be classified under the following headings:


Tier 1 (Protocol Tokens): These tokens are the underlying blockchain itself. For example, Ethereum (tier 1 token) backed by Ether.


Tier 2: These tokens are built on top of the existing tier 1 blockchain. For example, OmiseGO (layer 2 tokens) built on top of the Ethereum blockchain and powered by OMG.


Security vs Utility


Security tokens pass the Howey test and classify them as securities. Most ICOS are investment opportunities within the company itself. Therefore, most tokens count as securities.

On the other hand, utility tokens are issued to provide resources for a project that can then be used to purchase the project’s goods or services.

A token can facilitate the exchange of units of a commodity such as Bitcoin or Ethereum for other units of that commodity, and to sum it up, it may facilitate the exchange of a unit of a commodity for other units of that commodity. On the other hand, tokens are unique and therefore cannot be exchanged. Examples include ID cards or gym membership cards, intangible password devices.


UBXT Tokenomics


Total supply: 499.746.871

Circulating supply: 400.180.259


Thanks to the UBXT Burning program and performance fee system, a portion of performance fees collected in UBXT is being burnt that will help us to burn  50% of 500 million total supply and beyond! Read details in our Burn article HERE


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