Tokenomics

Tokenomics combines the words ‘token’ and ‘economics’ and refers to the study of the economic ecosystem in the blockchain and cryptocurrency landscape. It emphasizes the role of token supply, demand, distribution, incentives, and utility, which influence a token’s value and functionality within an ecosystem. It allows investors and developers to analyze a cryptocurrency’s prospects and sustainability.

Token supply and demand are the primary components of tokenomics, as a cryptocurrency’s value is highly dependent on these two factors. In addition to these, token burning and distribution also play a pivotal role.