Tokenomics (token + economics) encompasses all the economic rules and mechanisms that define how a cryptocurrency token functions. It includes supply parameters, distribution plans, utility within the ecosystem, incentive structures, and governance mechanisms.
Good tokenomics design balances the interests of all stakeholders — founders, investors, users, and the broader ecosystem. Key elements include a clear value accrual mechanism, sustainable emission schedules, aligned incentives through vesting, and transparent governance.
Evaluating tokenomics is essential for making informed investment decisions. A project with strong technology but poor tokenomics (excessive insider allocations, aggressive unlock schedules, no utility) may still fail to generate long-term value for token holders.