Clear DefinitionsUnit Bias
1 min read
Pronunciation
[yoo-nit bahy-uhs]
Analogy
Unit bias is like preferring to buy one whole apple rather than a quarter of an apple, even if the quarter costs less.
Definition
A behavioral tendency where users perceive whole tokens as more valuable than fractional amounts, influencing purchasing and pricing psychology.
Key Points Intro
Unit bias shapes token demand through:
Key Points
Psychological pricing: Users target round token counts (e.g., 1 TOKEN over 0.01 TOKEN).
Minimum denomination: High token prices can deter small investors.
Display effects: Wallets showing many decimals may confuse users.
Mitigation: Use smaller base units or rebasing to adjust nominal price.
Example
A token priced at $1 000 deters retail buyers due to unit bias; splitting into 1 000 000 sub‑units priced at $0.001 each increases perceived affordability.
Technical Deep Dive
Designers adjust `decimals` in ERC‑20 contracts to set the smallest unit. Front‑end interfaces format balances to hide large decimal places. Rebase tokens modify totalSupply algorithmically to maintain price within psychological ranges.
Security Warning
Rebasing to counter unit bias can introduce complexity and unexpected balance changes; test UI/UX thoroughly.
Caveat
Unit bias varies across cultures and user segments; research target audience preferences.
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