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TWT's Updated Tokenomics: Genuine Sustainability or Just Postponing Devaluation?

TWT's Updated Tokenomics: Genuine Sustainability or Just Postponing Devaluation?

Bitget-RWA2025/11/23 10:38
By:Bitget-RWA

- Trust Wallet Token (TWT) rebranded as Toncoin in 2025, shifting from governance to gamified utility via the Trust Premium loyalty program. - A 2020 token burn eliminated 88.9B TWT (40% of supply), creating scarcity but raising liquidity concerns amid limited adoption incentives. - TNSR's market resilience contrasts with TWT's risks, as centralized utilities and opaque supply management threaten liquidity and institutional trust. - TWT's success depends on balancing gamified engagement with decentralized

The (TWT), which will be known as starting in 2025, has experienced a major transformation in its tokenomics to better connect its value to practical use and active user participation. Yet, a key question persists: can these foundational adjustments truly preserve investor value over time, or are they simply postponing an unavoidable decline? To explore this, we need to analyze the token’s changing economic structure, draw parallels with similar projects like , and assess the potential pitfalls in liquidity, openness, and user uptake.

Structural Changes: From Governance to Gamified Utility

In 2025, TWT’s tokenomics will shift focus from governance to gamified utility, launching the Trust Premium loyalty scheme. This program incentivizes users for activities such as swapping, staking, and holding

, granting perks like lower gas fees and eligibility for airdrops. The approach , anchoring the token’s worth to the ecosystem’s expansion rather than speculative voting rights.

A pivotal part of this overhaul was the 2020 token burn, which removed 88.9 billion TWT from circulation—creating scarcity but also sparking liquidity concerns. By that year, more than 40% of TWT tokens were already available on the market, so the burn’s scarcity effect could be weakened if liquidity remains low. Some observers

, unlike what Ontology offers, may limit its ability to maintain both scarcity and sufficient market liquidity.

Utility and Adoption: A Double-Edged Sword

The effectiveness of the Trust Premium model depends on attracting a large user base. If the program fails to reach enough participants, the token’s practical use—and its price—could remain limited. For comparison, staking rewards in 2024 averaged 18.5% for

(ATOM) and 11.5% for (DOT), while TWT’s staking incentives are clearly specified. This implies TWT’s value is more closely linked to the ecosystem’s growth than to competitive returns, if expansion slows.

TNSR’s recent performance during a market downturn provides a contrasting case. Its strong position in the

NFT sector (holding 70% of the market) and its governance-led reinvestment of fees (with half of platform fees supporting ecosystem growth) have strengthened its utility and long-term prospects . For TWT, achieving similar success may require building comparable structural strengths, such as a secure market niche or self-reinforcing tokenomics.

Liquidity and Transparency: Critical Gaps

Issues of transparency and liquidity remain unresolved. TWT’s tokenomics do not offer the same clarity as projects like Monad, which locks over half its supply at launch to support long-term objectives. In contrast, TWT’s less transparent approach to supply could discourage institutional investors, who value predictability

.

Liquidity challenges are further highlighted by TNSR’s recent situation. Following Coinbase’s purchase of Vector.fun, TNSR holders lost access to a key utility (Vector’s consumer app), turning the governance token into one with fewer practical uses. This led to increased selling and price swings, highlighting the vulnerability of tokens that rely on centralized platforms

. TWT needs to ensure its utilities are decentralized and can withstand external disruptions.

TNSR Analogy: Lessons for TWT

TNSR’s adoption of open-source protocols and grant initiatives has broadened its revenue streams but also brought the risk of increased selling from large token distributions. TWT’s 2025 update must similarly find a balance between expanding utility and managing supply. For example, TNSR’s emphasis on real-world assets and AI-powered tools has added both complexity and execution risk

. TWT’s focus on gamified participation, though creative, could face comparable obstacles if user growth is sluggish.

Conclusion: A Delicate Balance

TWT’s tokenomics redesign marks a strategic move toward value based on real utility, but its future depends on overcoming challenges in liquidity, transparency, and adoption. The gamification and scarcity elements are encouraging, yet they echo the vulnerabilities seen in TNSR’s post-acquisition decline. If Trust Wallet can maintain user momentum and align incentives with ecosystem development, TWT could sidestep the fate of purely speculative governance tokens. Still, without strong liquidity solutions and transparent practices suitable for institutions, these changes may only postpone a potential downturn.

Investors should keep an eye on critical indicators: Trust Premium’s user growth, staking involvement, and how TWT compares to TNSR’s track record. At present, TWT’s tokenomics walk a fine line between breakthrough and instability—a risk that could either yield rewards or falter under market stress.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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