Tokenomics
token · economics
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
Total Supply
→The amount of a coin or token that currently exists, including circulating, locked, reserved, and escrowed units.
tokenomics · metrics
Circulating Supply
→The estimated number of coins or tokens currently available to the market, excluding locked or unissued supply.
blockchain · cryptocurrency
Maximum Supply
→The upper bound on asset issuance under a cryptocurrency's current protocol rules.
economics · tokenomics
Market Capitalization
→A sizing estimate calculated by multiplying an asset's reference price by its reported circulating supply.
finance · market