What are Tokenomics?
The economic model and design principles of a cryptocurrency or token.
Key details
- Supply
- Includes total supply, circulating supply, and emission schedule.
- Distribution
- How tokens are allocated among stakeholders.
- Utility
- The token's use cases within its ecosystem.
- Incentives
- How the token model incentivizes desired behaviors.
Examples
- 01Bitcoin's fixed supply cap and halving events.
- 02Ethereum's shift from PoW to PoS and its impact on ETH issuance.
- 03Governance tokens in DAOs that confer voting rights.