ECONOMIC MODEL OF THE SWAX TOKEN

To understand what is the Economy of the Token, it is important to define token and economy.

Token: digital assets or units of value with real-world worth that can be stored, recorded, and exchanged within a blockchain system. They take the form of an alphanumeric string that can be governed by a smart contract, and they are interchangeable across various services.

Economy: a social science that studies how to manage available resources to satisfy human needs. It analyzes the behavior, actions, and decisions of individuals, companies, and governments concerning production, distribution, and consumption.

Considering these two concepts, Tokenomics is the study of digital assets and tokens management within a blockchain system.

Token engineering is an emerging field focused on the design, development, and management of digital assets like cryptocurrencies. Essentially, token engineering aims to create robust and efficient economic systems based on tokens that can be used for a wide range of purposes, from user rewards to project financing.

The process of designing a token-based system involves decisions that will impact the final outcome, such as the initial token allocation, implementation of incentives, or long-term token supply management. These aspects are crucial for the success of any token system and, therefore, require careful planning and design.

To achieve this, Swaphix and its token engineering team use tools and methodologies such as game theory, mechanism design, complex systems theory, or behavioral economics. These tools allow modeling and simulations of economic systems in real-time, allowing them to predict system behavior and adjust incentives and parameters to optimize outcomes.