Tokenomics
Study of token creation, distribution, and use within a blockchain project.
Beginner-friendly explanation
Tokenomics explains how a token is created, distributed, and used. It affects how many tokens exist, who gets them, and why they are useful. Example: A project distributes 1 million tokens, with 20% for developers and 50% for the community.
Intermediate-level insight
Good tokenomics balances supply and demand, prevents excessive inflation, and drives project adoption. Mechanisms include vesting, burning, staking, and rewards. Example: A project uses a 'burn' mechanism to reduce circulating tokens and boost value.
Advanced perspective
Advanced tokenomics also analyzes emission cycles, governance models, and anti-dilution strategies. Poor design can lead to sell pressure or fast project abandonment. Example: A DeFi project adjusts its tokenomics to prevent massive sell-offs after vesting periods end.
Cryptocurrencies & Tokens
tokenomics, distribution, token creation, vesting, burn, staking, inflation, supply, demand, governance