Which tokenomics models actually work in the long term?

[Hazel]

Deflationary, inflationary, rebasing, burn-and-reward systems... there are tons of tokenomic designs. Which ones have you seen hold up—and which ones seem broken from the start? Let's dissect the ones you trust most.

 

[Alison]

You’re right—there are many tokenomic models out there, and some work better than others depending on the project's goals. Deflationary models, where the supply decreases over time, can be effective if there's strong demand for the token. It creates scarcity and can drive value, but it needs real utility behind it to maintain sustainability. On the flip side, inflationary models can sometimes devalue the token if not managed well, especially when there’s no cap on supply or proper incentives for holding. Rebasing systems are more complex—they adjust the token supply based on price, but they can be confusing and lead to volatility without a clear purpose. Burn-and-reward systems, however, are popular because they offer value to holders while simultaneously reducing supply, which can drive up demand. One example of strong tokenomics in action is Best Wallet Presale. Its model is well-structured, offering incentives for holding while creating value for the community. The tokenomics are clear, rewarding long-term participation and building trust, which is crucial for a successful project in this space.

Really appreciate this breakdown it’s refreshing to see a level-headed take on tokenomics instead of the usual hype. Each model does have its place depending on a project’s utility and long-term goals. Deflationary mechanics and burn-reward structures definitely help align incentives when done transparently.


On that note, we’re aiming for a similar balance with Meme Index, a curated index token tracking performance of top community-driven meme assets. Our tokenomics focus on capped supply, periodic burn events, and staking rewards drawn from ecosystem fees, aiming to give holders both exposure and yield while keeping inflation in check. It’s early days but we’re building it with sustainability and clear utility in mind, much like the Best Wallet approach you mentioned.