Tokenomics Analysis — Checklist
Systematic approach to analyzing project tokenomics before investment.
Tokenomics (token economics) is the most important factor in altcoin long-term performance — bad tokenomics guarantees failure regardless of technology.
Checklist:
1. Total supply □ Fixed supply? (BTC: 21M) □ Inflationary? (how much % annually?) □ Buyback/burn mechanism?
2. Circulating Supply vs Max Supply □ How many tokens are already circulating? □ How many are locked (vesting)? □ FDV (Fully Diluted Valuation) = Market cap at max supply □ FDV >> Market Cap = many tokens coming = sell pressure
3. Allocation □ What % does the team hold? □ What % do investors hold? □ More than 20% for team = red flag □ Airdrop to community?
4. Vesting schedule □ Cliff period? □ TGE (Token Generation Event) unlock %? □ Next massive unlock when? □ Token.unlocks.app for tracking
5. Token use case □ Required for protocol or just governance? □ Fee sharing with holders? □ Staking utility?
6. Sink mechanisms □ Are there mechanisms reducing supply? □ Gas burn, buyback, protocol revenue burn
Red flags: