🧮 "What is Tokenomics?" Understand it as how an economy operates... but in the world of coins
You may have heard:
"This project's tokenomics is really good."
"That game distributes tokens randomly; it's bound to fail."
But what is tokenomics really?
💡 It's as simple as talking about money in... a virtual country
If a country has paper money, then a crypto project has tokens.
But to ensure that the economy of that country does not experience inflation or poverty... there must be smart monetary policies.
→ Tokenomics is the set of laws governing the tokens of a project:
What is the total supply?
Who holds what percentage?
When will it be unlocked?
What is the token used for in the ecosystem?
Is there a burning mechanism or not?
📌 A project with "good" tokenomics will:
Distribute tokens fairly, not letting whales take everything.
Encourage users to hold long-term, not panic sell.
Create real incentives to use the tokens, rather than just buying to wait for a price increase.
🚨 What if the tokenomics is bad?
The project may "pump" the price for a few days, then crash uncontrollably.
Why? Because:
The team dumps tokens.
Investors unlock early and sell everything.
No one actually needs to use the tokens in the ecosystem.
✅ In summary:
Tokenomics is the "rules of the game regarding money" in a crypto project. It determines whether the token has real value or is just... a pie in the sky.