Tokenomics
The economic design of a token, including supply, issuance, distribution, utility, incentives, and unlocks.
Tokenomics describes how a token is created, allocated, released, used, and removed from supply. It includes emission schedules, vesting, burn or mint rules, fee capture, governance rights, and incentives for users, teams, and validators.
Good tokenomics does not guarantee success, but poor design can create obvious risks such as excessive dilution, weak utility, concentrated ownership, or incentives that attract short-term mercenary capital.
Related terms
4 linkedExplore connected entries beyond the alphabetical index.
Total Supply
→The amount of a coin or token that currently exists, including circulating, locked, reserved, and escrowed units.
Circulating Supply
→The estimated number of coins or tokens currently available to the market, excluding locked or unissued supply.
Maximum Supply
→The predetermined total number of a cryptocurrency that will ever exist, enforced by the protocol's rules.
Market Cap
→Market cap estimates a cryptocurrency's total circulating value by multiplying price by circulating supply.
All terms and definitions may update as the Cryptionary improves.
