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tokenomics

What does tokenomics mean?

A blend of 'token' and 'economics' covering a project's token supply, emission schedule, allocation, utility and incentive structure — key to assessing its long-term value.

"The tech is fine but the tokenomics are broken with 90% going to insiders."

Origin

Crypto portmanteau of 'token' and 'economics'.

Frequently asked questions

What does tokenomics mean?
It is the economic design of a crypto token, covering its supply, distribution, emission schedule, utility and incentive structure.
Why do tokenomics matter?
They determine how supply enters the market and who benefits, which heavily influences a token's long-term value and sustainability.
What makes tokenomics bad?
Warning signs include a huge share allocated to insiders, aggressive emissions, or no real utility driving demand for the token.
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Slang definitions: FreeDict original editorial.