What Is Tokenomics? Why It Can Make or Break a Project
If you're investing in crypto and ignoring tokenomics… you're flying blind.
Tokenomics = how a token works, moves, and grows — or fails.
Here’s a simple breakdown 👇
🔢 1. Total Supply vs Circulating Supply
Total Supply: Max number of coins that will ever exist
Circulating Supply: Coins in the market right now
More coins released later = possible price dilution.
🔒 2. Token Allocation
Who gets how much?
If the team or VCs own too much, they can dump on retail investors later.
⏳ 3. Vesting Periods
Good projects lock tokens for founders/investors to avoid dumping.
No vesting = 🚩 red flag.
🔥 4. Burn Mechanisms
Some tokens burn a % of fees or supply to reduce inflation and boost scarcity (like BNB).
⚙️ 5. Use Case
The best tokenomics are useless if the token has no purpose.
Always ask: “Why does this token exist?”
🧠 Final Thought
Before buying a coin, study its tokenomics like you’d study a business model.
Strong tokenomics = long-term strength.
Weak tokenomics = short-term pump, long-term dump.
👉 Do you check tokenomics before investing? Comment below!