Tokenomics
Also known as: Token Economics, Crypto Economic Design, Token Supply Model
The economic model and distribution logic governing a cryptocurrency token's supply, demand, and utility.
Tokenomics, short for token economics, refers to the design, distribution, and incentive structure of a crypto token within its ecosystem. It includes details like total supply, issuance schedule, allocation, inflation/deflation mechanisms, use cases, and governance. Strong tokenomics incentivize adoption, liquidity, and participation, while poor design can lead to inflation, manipulation, or lack of demand. Tokenomics is typically outlined in a project's whitepaper and impacts investor behavior, DeFi yields, and protocol sustainability.