Tokenomics
The rules about how a cryptocurrency works - how many exist, how they're given out, and what makes them valuable or useful.
Example
Bitcoin only having 21 million coins ever, with rewards cut in half every 4 years, creating scarcity.
Related Terms
Advanced Concepts
⚙️How It Works
- 1
Supply
How many tokens exist and will ever exist (max supply, inflation rate)
- 2
Distribution
How tokens are allocated (team, investors, community, treasury)
- 3
Utility
What the token is used for (governance, fees, staking, access)
- 4
Value Accrual
How token holders benefit (fee sharing, buybacks, burns)
📊Key Numbers
10-20%
Team Allocation
typical for new projects
5-15%
Community/Airdrop
to bootstrap users
1-4 years
Vesting Period
for team/investors