Tokenomics

Tokenomics is the study of a cryptocurrency's economic design: its total and circulating supply, how new coins are issued, who holds them, and what utility the token has within its ecosystem. It covers factors like whether supply is fixed or inflationary, how quickly early investors' or team tokens unlock (vesting), and what actually creates demand for the token beyond speculation. Strong tokenomics generally align incentives between early backers, the team, and long-term users; weak tokenomics — such as a small circulating supply with huge future unlocks — can create heavy sell pressure regardless of the project's other merits. Reading a project's tokenomics is a core part of evaluating it, separate from evaluating the technology itself.