🧠 Topic: What is tokenomics — from issuance and locks to why 100% APY ≠ profitable

💰 Tokenomics (#Tokenomics ) — is the 'economics of the token':
everything related to the issuance, distribution, use, and value of the project's cryptocurrency.

It determines whether the token will be a valuable coin 💎 or 'garbage' for dumping 🗑

📦 What is tokenomics made of:

Issuance — how many tokens will there be in total
🔹 Limited (for example, 21 million $BTC )
🔹 Unlimited (for example, $ETH  until updates)

Distribution — who receives the tokens:

🔹 Team

🔹 Founders

🔹 Investors

🔹 Community

🔹 Reserves / DAO / ecosystem

Vesting (locks) — when the tokens can be sold
🔒 Often, the team and investors are given tokens with a lock (for example, 1 year of locking + 12 months of unlocking)

Use case of the token — why is it needed?
🔸 For paying gas
🔸 For participating in governance
🔸 For farming, staking
🔸 For access to #nft , #IDO , #defi  etc.

💡 Why high yield ≠ project success

📈 See 200% APY? Great.
But…

🔻 If at the same time:

there is no vesting

the entire token is with the team

there is no demand

there are no burn mechanics
— → the token will simply devalue

💣 Often, projects print tokens under APY but do not ensure demand → inflation eats into profits

📊 Example of bad tokenomics:

60% with the team and venture capital

Tokens unlock after 3 months

No product and use case
→ result: price falls after TGE

📊 Example of good tokenomics:

40% of tokens — for the ecosystem and community

Team — 20% with 3 years of vesting

Clear use case and burning mechanics
→ the token holds or increases in price

📌 Conclusion:
Tokenomics is like a business plan for the project.
Before investing — read the tokenomics, not just tweets.
Bad tokenomics will eat any yield.

📖 In the next issue, I will tell you:
What is TGE, how projects go to market and when is the best time to enter so as not to become 'exit liquidity' for investors.

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👆This article is for informational purposes only and is not investment advice. Thank you for subscriptions, likes, comments, and reposts!$SOL