Tokenomics
Tokenomics is the study of a token’s economic design, including supply, utility, distribution, incentives, and unlocks.
✦ Key Insight
Good tokenomics can support long-term value. Poor tokenomics can create constant selling pressure.
✕ Common Misconceptions
Only looking at price and ignoring supply changes.
Detailed Explanation
How It Works
Traders examine max supply, circulating supply, emissions, vesting, utility, burn mechanisms, and holder concentration.
FAQs
Is tokenomics only about supply?
No. It also includes incentives, utility, and distribution.
In Practice
Dig Deeper
Market Cap
Market capitalization is the total value of a cryptocurrency (price × supply).
Circulating Supply
Circulating supply is the number of coins currently available in the market.
Token Unlock
A token unlock is a scheduled release of previously locked tokens — typically those allocated to team members, early investors, the treasury, or advisors — into the circulating supply. Unlocks are defined by the token's vesting schedule, often published at launch.
Vesting
Vesting is a schedule that gradually releases tokens to investors, founders, teams, or contributors.
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