What is the primary concern regarding the token economics of layer one blockchains?
Replied byBill Barhydt
Founder & CEO at Abra
Niche: Cryptocurrency
Revenue: Approx. 3 Million USD/month
Location: Mountain View, California, United States
Started: 2014
Many layer one platforms have broken token economics because their transaction costs are so low that they do not generate sustainable revenue. Without a viable business model to support block space usage once it is at a premium, these foundations are forced to dilute users through staking inflation.
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