This story was originally published on HackerNoon at: https://hackernoon.com/if-we-dont-reinvent-tokenomics-decentralized-infrastructure-will-fail.
How control theory and burn-and-mint tokenomics can create scalable, stable blockchain infrastructure networks like Helium and Filecoin.
Check more stories related to web3 at: https://hackernoon.com/c/web3. You can also check exclusive content about #blockchain-infrastructure, #decentralized-networks, #burn-and-mint-equilibrium, #decentralized-infrastructure, #helium-network, #dynamical-systems-in-crypto, #predictive-tokenomics, #hackernoon-top-story, and more.
This story was written by: @tokenomy. Learn more about this writer by checking @tokenomy's about page, and for more stories, please visit hackernoon.com.
Blockchain-based infrastructure networks (like Helium and Filecoin) struggle with fixed-supply tokenomics that reward early adopters but fail to incentivize long-term growth. This article proposes modeling token economies as dynamical systems using control theory to balance supply, demand, and pricing. By applying adaptive burn-and-mint strategies and predictive optimization, networks can achieve sustainable equilibrium, avoiding inflation while encouraging new suppliers to join. The result: token economies up to 2.4× more stable than traditional stablecoin heuristics.