Arweave TX
Fabian Owuor
In Kenya, we understand value. For instance, one ugali in the evening = peace in the household. In crypto, tokenomics is the set of rules that determines a coin’s value, supply, and how it moves around. Think of it like SACCO by-laws, but instead of chairmen, you have code. And instead of angry WhatsApp groups, you have people on X (formerly Twitter) shouting “HODL!” and “To the moon!”
Tokenomics answers questions like:
How many coins will exist? (Is it like maize during harvest or unga during subsidies?)
How do you get some? (Mining? Airdrops? Asking your cousin in Dubai?)
Who gets rich and who gets rekt? (Mostly you, if you bought at the top.)
Let’s talk motisha. In crypto, incentive mechanisms are how networks reward people for doing good things—like confirming transactions or not running away with everyone’s money.
Imagine if Safaricom paid you every time you convinced someone to buy airtime. That’s a bit like how Ethereum or Bitcoin pays “miners” for keeping the network running. Only difference: instead of scratch cards, you need a warehouse full of hot computers and a backup generator from River Road.
1. Deflationary Coins (a.k.a. The Price of Tomatoes in January)
Some coins, like BNB or SHIB, burn a portion of tokens over time. This means the total supply reduces slowly, like how your bundles disappear mysteriously even when you're on Wi-Fi. Safaricom, yawa, we see you.
2. Inflationary Coins (a.k.a. Kenyan Shilling on a Bad Day)
Other coins increase supply over time. Think of them as the sugarcane you keep chewing but never finishes. Unfortunately, more supply usually means less value, unless you slap the word “AI” on it and post it on LinkedIn.
3. Staking Rewards (a.k.a. Farming in Crypto Land)
Stake your tokens and earn more, just like planting sukuma and getting free caterpillars. Only difference? In crypto farming, the insects are called "rug pulls."
Buying because someone said, “Don't miss out!” – My guy, that's how you ended up with Oriflame in 2012.
Putting your rent into a coin named “FlokiInuZebraMoon” – Unless you want to move back in with your folks, don’t.
Thinking tokenomics is short for “token ni ya mics” – This is not a DJ school, please.
Tokenomics isn’t witchcraft. It's just complex economics wrapped in computer code and hyped by people with YouTube channels and questionable fashion sense. But if you understand how value is created, shared, and protected in a token economy, you can avoid becoming the next victim of a coin that promises “Lambo by Tuesday” and delivers “Chapati by next month.”
So next time someone offers you a new coin, ask them:
"What’s the tokenomics, bro?"
If they answer with “It’s the future,” just walk away slowly, like you’ve spotted a traffic cop, and your insurance expired last week. They are literally insurance salesmen and women, cops, they should just get paid by the insurance companies.
Soko ya crypto sio kwenu. Invest responsibly.