Glossary Term
Tokenomics
Tokenomics—short for "token economics"—refers to the design, distribution, supply dynamics, and incentive structures that dictate how a token works within a blockchain ecosystem such as Solana, shaping its value, use cases, and community engagement.
Beginner
General
Crypto Terminology
Tokenomics: what is it?
Examples
- 1
Token launches with fixed maximum supply and scheduled vesting (limiting early dumps).
- 2
Staking systems rewarding holders with additional token emissions.
- 3
Deflationary mechanics (buy & burn) to increase token value over time.
Common Use Cases
Allocating funds during project launches (ICOs, airdrops, liquidity mining).
Staking and yield farming.
DeFi platform utility and governance.
NFT project access and membership systems.
Pro Tips
💡
Always consult the official documentation for each project to deeply understand tokenomics specifics before involvement .