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What is the main risk of a poorly designed tokenomics model?

Lim How Wei
March 30, 2025

Xenea is a digital wallet powered by blockchain for financial transactions and rewards.

You can complete missions to earn rewards, mine to get more rewards, and invite friends.

To get started, you must download the Xenea app from the App Store/Google Play Store.

Use this link: xenea.app/register/15tiVsJCqm or “15tiVsJCqm” as the invite code.

Lastly, go to your wallet > Ongoing Gem Campaign > Missions > Daily Quiz.

This article contains the Xenea daily quiz answer today for 30/03/2025 to earn 100 gems coins if you’re correct.

Xenea Daily Quiz Answer Today

Question: What is the main risk of a poorly designed tokenomics model?

Answer: Rapid inflation or collapse of the token’s value.

Further reading

What is the significance of ‘token governance’ in a project?

What is the role of a “token airdrop” in a cryptocurrency project?

Which of the following is NOT a common method of token distribution?

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About the author

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Lim How Wei

Lim How Wei is the founder of followchain.org, with 10+ years of experience in Social Media Marketing and 5+ years of experience as an active investor in stocks and cryptocurrencies. He has researched, tested, and written thousands of articles ranging from social media platforms to messaging apps.

Lim has been quoted and referenced by major publications and media companies like WikiHow, Fast Company, HuffPost, Vice, New York Post, The Conversation, and many others. One of his articles about the gig economy was quoted by Joe Rogan, who hosts The Joe Rogan Experience (the most popular podcast in the world), in the This Past Weekend podcast (the third most popular podcast in the world as of 2026) by Theo Von.

In his free time, Lim uploads personal finance videos on his YouTube channel, Lim Finance, to guide others on their financial journey. He also creates gaming guides, walkthroughs, solutions, and tips for the games he plays, helping players with their progression.