Tokenomics, if you see this be aware by daje10

hive-167922 · @daje10 · Sep 4 '23

$4.19

Tokenomics, if you see this be aware

![Tokenomics, if you see this be aware](https://images.ecency.com/DQmSGH6oLyepLza9PCfCwituhD8CAedzcTbs4d2NGFCCeN6/whitepaper_reading.jpg)

I have covered reading whitepapers previously. But I feel I did not give this particular topic the spotlight it needs. I feel it is easy to read and miss the true repercussions of what you actually read. I hope that you will find this post useful.

## **Tokenomics and what to look for**

I assume that you are aware of the big red flags that can show up in projects from time to time. I am talking about a few people controlling large amounts of tokens from day one, or perhaps even pre-launched if there was an early sale. And the risk of course is that the project can be rugged or the people will manipulate the token price.

There is a new minable coin that has seen a lot of adoptions very fast, Rethereum. The goal there is to, more or less, bring back Ethereum as it was pre-merge. And I will share a snippet from their whitepaper link to it is down below:

![ "089b74e0203464acef1219ec71c3a41e0e417156e8cb3954d45841d847e423cd.png"](https://cdn.publish0x.com/prod/fs/cachedimages/1010230793-089b74e0203464acef1219ec71c3a41e0e417156e8cb3954d45841d847e423cd.webp)

I am sure that it doesn't really contain anything special, at least not if you read some whitepapers. Most of the things listed here are nothing new in themselves. The foundation gets 2.1 million $RTH that is unlocked after 12 months. But there is a slight trick they are using. And it is something many with me are getting rather annoyed with. If we look at the number of coins they say it is only 1.68% of the total supply. Hardly worth noting right? But the problem is that they are comparing the number of coins with the total number that will exist after nine years.

The truth however is that the coins will unlock after 12 months and not nine years. So why are they not comparing the 2.1 million with the total number of coins that are around after 12 months? It will be a significantly higher percentage than the 1.68%. With the coin launching on August 20th, when I checked the trade volume today, September 3 the trade volume was just over 37.000. Even if we increase the amount we can still see that the 2.1 million will be a significantly larger amount than the stated 1.68%.

Then there is also the whole issue of the coins being "locked". There have been some workarounds allowing individuals to access wallets earlier than stated. Hence you most likely should take the lock period with a grain of salt.

The important part however is not that Retherium is bad, I have no real opinion on it at the current time. So I could not say whether you should stay away or not. But I just used them as a recent example of the issue. Where developers are fudging the numbers for some strange reason. I mean if it is not due to the project being nefarious I see no reason for them to not just be up front and show the "real" numbers instead of these made-up numbers. In Retherium's case at the very least the relevant comparison would have been after 12 months. When the coins are unlocked. So if you are a developer please stop doing these slight of number crap. It is annoying as hell.

Again I hope that you found this post to be useful to you. Do you have any other examples of a coin or token doing this, if so please share them. Or if you have any other things you have come across in the whitepapers that are "strange" to you, please share those too.

If you would like to support me and the content I make, please consider following me, reading my other posts, or why not do both instead. I have also become a partner at [Medium](https://medium.com/@bo.daniel.jensen/membership), so following me there is also a great way to support me.

https://medium.com/@bo.daniel.jensen

See you on the interwebs!

Picture provided by: [https://pixabay.com/](https://pixabay.com/)

**Resources**

1. [https://github.com/Rethereum-blockchain/whitepaper/blob/master/Rethereum\_Whitepaper.pdf](https://github.com/Rethereum-blockchain/whitepaper/blob/master/Rethereum_Whitepaper.pdf)

👍 leo.voter, newhope, mypathtofire, pouchon, thisisawesome, elements5, darmst5339, muratkbesiroglu, steemaction, bitrocker2020, walterjay, niallon11, trasto, treefrognada, dlike, gadrian, neal.power, roleerob, randomvoter, pvmihalache, chmoen, beststart, bradleyarrow, maddogmike, kevinwong, megavest, ijat, rmsadkri, laruche, tydynrain, iamraincrystal, mytechtrail, gurseerat, mervinthepogi, rcaine, rzc24-nftbbg, scaredycatguide, aslehansen, babytarazkp, bigtakosensei, ericburgoyne, sammyhive, leoschein, venarisyndicate, ireenchew, travelwritemoney, invest4free, x9ed1732b, hirohurl, warpedpoetic, cribbio, tsurmb, arrliinn, edian, countrysid, jeffjagoe, robotics101, masoom, flaxz, scrubs24, leo.tokens, agro-dron, grabapack, wearealive, and 34 others

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bigtakosensei	2,993,195,073	2.5%
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newhope	3,355,979,601,213	27%
pouchon	227,128,993,828	5%
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bitrocker2020	33,750,985,493	2.5%
arrliinn	1,458,312,908	1%
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gadrian	15,181,409,607	2%
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rcaine	4,570,821,949	3%
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leo.tasks	52,461,755	5%
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