GLOSSARY // Crypto
Tokenomics
Tokenomics is the economic design of a coin: how many exist, how new ones are created or burned, who holds them, and on what schedule locked tokens unlock. It is the supply-and-incentive blueprint behind the price.
It matters because a great narrative can hide terrible token math. If a founding team and early investors hold most of the supply and their tokens unlock next quarter, that overhang can crush the price no matter how good the product is. Reading tokenomics is the crypto version of checking the share count and insider ownership before buying a stock.
A token launches with only 10% of supply circulating and 90% held by the team and investors, unlocking over two years. Even with rising users, each unlock adds sellers, and the chart can grind down for months while the network itself is growing.
Put it to work
Related terms
Educational only — not financial advice. Definitions simplified for clarity; markets are messier than definitions.