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LIKE Tokenomics

Updated June 2023
Tokenomics is the economics of how a utility token function within the platform. The value of any digital assets is closely tied to its supply and demand, simply put — when there are more demand than supply, price appreciates.
Imagine a world where both consumers and creators earn on the social platform they use. Similar blockchain-based economic model where users earn by engaging on the platform usually take the form of P2E (Play to Earn). These platforms reward users by minting native utility tokens to distribute to active users. However, without sufficient buyback, the value of the token will appreciate only when there is a continuous stream of new buyers, and once the hype dies out, the token will merely become hyperinflated over time and lose its value.
We realize that in order to sustain the value of the platform’s native token, the platform must have more deflationary factors in place than inflationary factors. The platform must also provide value to users more than just reward token incentives. In other words, the inflow of native token via buybacks using platform revenue must be larger than the outflow of the native token to reward users. Let’s do a deepdive into the tokenomics of LIKE, the native token of the Only1 platform.