📅 Day 56 of 100 – What Is "Tokenomics"? 🤔
In crypto, Tokenomics is a blend of "Token" + "Economics." It refers to all the elements that impact a token’s value, demand, and usage.
Understanding tokenomics helps you invest smartly by evaluating the potential and stability of a project.
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🔍 Key Elements of Tokenomics:
1. Total Supply – How many tokens will ever exist?
2. Circulating Supply – How many tokens are currently in the market?
3. Token Allocation – Who gets how much? (Team, investors, public)
4. Vesting Schedule – When are locked tokens released?
5. Burn Mechanism – Will tokens be destroyed to reduce supply?
6. Utility – What can the token be used for? (payments, governance, staking?)
7. Incentives – How are users encouraged to hold or use it?
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🧠 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.
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✅ Pro Tip:
Before buying any token, always read its whitepaper and check tokenomics. Even hyped coins can crash if the economics don’t make sense.
