๐ Day 56 of 100 โ What Is "Tokenomics"? ๐ค
In crypto, Tokenomics is a blend of "Token" + "Economics." It refers to all the elements that impact a tokenโs value, demand, and usage.
Understanding tokenomics helps you invest smartly by evaluating the potential and stability of a project.
---
๐ Key Elements of Tokenomics:
1. Total Supply โ How many tokens will ever exist?
2. Circulating Supply โ How many tokens are currently in the market?
3. Token Allocation โ Who gets how much? (Team, investors, public)
4. Vesting Schedule โ When are locked tokens released?
5. Burn Mechanism โ Will tokens be destroyed to reduce supply?
6. Utility โ What can the token be used for? (payments, governance, staking?)
7. Incentives โ How are users encouraged to hold or use it?
---
๐ง Why Tokenomics Matters to Traders & Investors:
A low supply with high demand = potential price surge.
Heavy unlocks or poor vesting = potential dump.
No real use case = weak long-term value.
---
โ Pro Tip:
Before buying any token, always read its whitepaper and check tokenomics. Even hyped coins can crash if the economics donโt make sense.
