Tokenomics

Tokenomics describes the complete economic system surrounding a token — total supply, initial distribution, vesting schedules, inflation/emission rate, burn mechanisms, and how the token captures or distributes protocol value. Well-designed tokenomics align incentives between protocol growth and token value; poorly designed tokenomics result in sustained sell pressure from unlocks, inflation, or misaligned incentive structures. Analyzing token unlock schedules and insider vesting is a core due diligence step.