← Glossary
Tokenomics
The economic design of a token: supply, distribution, and incentives.
Tokenomics describes how a token's economy is designed: how many exist, how new ones are created or burned, who holds them, and what they're used for.
Strong tokenomics align incentives so the project can grow sustainably. Red flags include a tiny circulating supply with huge future unlocks, or a handful of insiders holding most of the supply.