In this latest report, Binance Research deep-dived into the topic of tokenomics, exploring both the supply and demand dynamics.On the supply side, the team analyzed token allocations, vesting periods, and emission schedules. Data showed that Layer 1 projects have seen Public Sales allocations go down in favor of higher allocations towards Ecosystem Incentives in recent years. Exploring case studies on high FDV / low market capitalization tokens and high DeFi APRs, the team also noted the importance of understanding burn mechanisms and emission schedules of tokens.On the demand side, the team emphasized that still, too many protocols pay too little attention to the incentive function of the token and token utility. For the team, trust plays an essential role in the utility of tokens as they define tokenization as a form of digitalization of value.Binance Research also looked beyond supply and demand and evaluated the two-token model, and further explored the importance of a solid product when thinking about tokens.Want to read the complete insights from the report and deep-dive into tokenomics?For more details, the full report can be found here: https://research.binance.com/en/analysis/tokenomics-deep-dive About Binance Research: Binance Research is the research arm of Binance, the world’s leading cryptocurrency exchange. The team is committed to delivering objective, independent, and comprehensive analysis and aims to be the thought leader in the crypto space. Our analysts publish insightful thought pieces regularly on topics related but not limited to, the crypto ecosystem, blockchain technologies, and the latest market themes.General Disclosure: This material is prepared by Binance Research and is not intended to be relied upon as a forecast or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, cryptocurrencies or to adopt any investment strategy. The use of terminology and the views expressed are intended to promote understanding and the responsible development of the sector and should not be interpreted as definitive legal views or those of Binance. The opinions expressed are as of the date shown above and are the opinions of the writer, they may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by Binance Research to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Binance. This material may contain ’forward looking’ information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. This material is intended for information purposes only and does not constitute investment advice or an offer or solicitation to purchase or sell in any securities, cryptocurrencies or any investment strategy nor shall any securities or cryptocurrency be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the laws of such jurisdiction. Investment involves risks.