5.6 Token Demand Model

In the intricate tapestry of a decentralized network's economy, understanding token demand is as crucial as gauging its supply. The demand for tokens isn't merely a reflection of its popularity; it's an indicator of the network's health, the efficacy of its use cases, and the trust reposed in it by its users. The Token Demand Model seeks to elucidate these complexities, providing stakeholders with a clear picture of how, when, and why tokens are sought after.

Token demand, inherently influenced by a myriad of factors ranging from technical developments, external market conditions, to user adoption rates, often dictates the perceived value of the network's native token. Thus, modeling this demand is pivotal, not just to ensure that the network operates at its optimum but also to forecast its future trajectory, enabling proactive measures.