Tokenomics
Token economics — supply, distribution, inflation, and incentive model of a project.
Tokenomics (token + economics) describes the economic model of a cryptocurrency or token — everything that defines how a token functions as a financial asset within a project.
Key tokenomics parameters:
•Total supply — maximum number of tokens that will ever exist
•Circulating supply — tokens currently in circulation
•Vesting schedule — when team/investor tokens unlock
•Token utility — what the token is used for (governance, gas, staking, payment)
•Inflation/deflation — whether new tokens are minted or burned
Why tokenomics matters:
•Projects with high "unlock" loaded on investors = sell pressure risk
•Inflationary token without utility = value declines long-term
•BTC tokenomics: limited supply + deflationary halving = bullish long-term
Where to check tokenomics: CoinGecko, Messari, project documentation (whitepaper, litepaper).