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Lesson # 5
Sustainable vs Ponzi Tokenomics
Blockchain Basics
1. What is a common risk of offering extremely high APYs in a crypto project?
A. They often rely on unsustainable token minting that leads to inflation
B. They reduce token emissions over time
C. They encourage users to hold tokens long-term
D. They increase the value of all staked tokens permanently
2. Which of the following is a sign of a potentially unsustainable reward-based project?
A. Gradual emission reduction as the protocol matures
B. Constantly increasing token supply with no utility use case
C. Strong utility for the token beyond rewards
D. Transparent governance and protocol documentation
3. Why do reward-based crypto projects often collapse after a period of rapid growth?
A. Their teams stop working on development
B. Emissions become deflationary too quickly
C. Early users sell off rewards and the project lacks real demand or utility
D. Users can no longer stake their tokens
4. What is one feature of a sustainable tokenomics model?
A. Emissions are designed to stay constant forever
B. Rewards are backed by real economic activity such as fees or revenue
C. Staking rewards are always paid from newly minted tokens
D. All tokens are unlocked at launch to encourage liquidity
5. How do token buybacks support sustainable tokenomics?
A. They allow unlimited emissions to continue
B. They increase inflation and expand supply
C. They reduce circulating supply and can support token value
D. They eliminate the need for community governance