Tokenomics = token + economics.
It’s the setup behind every crypto, how supply is structured, who gets what and what the token is actually used for.
𝐖𝐡𝐲 it matters
Even with great tech or narrative, poor tokenomics can drag price performance. Some setups reward early insiders too heavily, flood the market over time, or rely purely on hype to sustain demand.
Strong tokenomics create alignment. Weak tokenomics create bagholders.
𝐊𝐞𝐲 𝐭𝐡𝐢𝐧𝐠𝐬 to check.
👉🏼 Total Supply
A massive supply makes it harder for price to move unless demand is off the charts. Numbers matter.
👉🏼 Circulating Supply
If most of the supply isn’t in the market yet, that means more tokens will unlock later. That can create sell pressure unless handled well.
👉🏼 Unlock Schedules
Gradual, long term unlocks = healthy. Sudden or oversized releases = often followed by volatility.
𝐖𝐡𝐨 Holds What?
A fair share to the community and ecosystem is a good sign. If most of it sits with insiders, that’s something to be cautious about.
𝐓𝐨𝐤𝐞𝐧 Utility
If there’s no real use case, the token ends up being driven by speculation. Real utility creates real demand.
𝐄𝐱𝐚𝐦𝐩𝐥𝐞𝐬 of strong tokenomics
$ETH powers transactions, has a burn mechanism, and is actually used daily. Not perfect, but proven.
$LINK is what powers real world data onchain. If a project needs reliable info from outside the blockchain, it pays for it in LINK. No token, no data. Steady structure and upcoming staking adds even more reason to hold.
$ONDO has clear allocation, capped supply, long vesting. Still early, but structurally it looks reasonable.
𝐄𝐱𝐚𝐦𝐩𝐥𝐞𝐬 of tokenomics that raised concerns
OM (Mantra) High supply, weak utility, and poor early structure.
Projects with huge supply and no utility is often positioned for hype rather than lasting value.
$JASMY I know there are a lot of Jasmy fans here so don’t shoot me. This token has strong community backing and a compelling narrative, but tokenomics have been debated. With most of the supply already in circulation and questions around utility, it’s something worth understanding before jumping in.
Not every project with questionable tokenomics is a bad investment, but it adds risk. Especially in a market where hype fades fast. Understanding the structure helps you figure out if you’re genuinely investing, or unknowingly providing someone else with their exit.
Have a great day 👩🏻💻☕️