What is Tokenomics?
Tokenomics is the study of a token's supply schedule, distribution, utility, incentives and sinks. Strong tokenomics align long-term holder interests with protocol growth; weak tokenomics create inflation, mercenary capital and predictable sell pressure.
Why Tokenomics matters
Understanding Tokenomics is part of building a solid mental model of how Bitcoin, blockchain and Web3 systems actually work. Concepts in the General category sit at the foundation of the broader stack — get them right and the rest is far easier.
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Related terms
- Halving — The scheduled 50% cut in Bitcoin's block subsidy.
- Stablecoin — A cryptocurrency designed to track a stable reference value.
- Governance Token — A token that grants voting rights in a protocol.
More general terms
- Altcoin — Any cryptocurrency that is not Bitcoin.
- Cryptocurrency — Digital money secured by cryptography on a blockchain.
- CEX (Centralized Exchange) — A company-operated crypto trading venue.
- Whitepaper — The technical document describing a protocol's design.
- KYC (Know Your Customer) — Identity verification required by regulated services.
- AML (Anti-Money Laundering) — Regulations preventing illicit financial flows.
- Market Capitalization — Circulating supply × price.
- ICO (Initial Coin Offering) — An early-stage token sale to fund a project.
Keep exploring
Continue with the full blockchain glossary — 136 terms in total — or read the developer blog and FAQ for deeper context.