GlossaryIntermediate
Tokenomics
The design of a token's supply, distribution, and incentives.
Tokenomics refers to the overall economic design of a cryptocurrency token, including how many units exist, how they're distributed, how new units are issued, and what incentives the design creates for holders and participants.
Understanding a project's tokenomics, such as who holds large portions of the supply or when locked tokens will unlock, is often part of evaluating a token beyond just its stated purpose.
Examples
- A project's tokenomics might allocate portions of supply to the team, investors, and the public.
- Large upcoming unlocks of previously vested tokens are often discussed as a tokenomics consideration.