Tokenomics
Tokenomics is the study of a cryptocurrency's economic model—supply, distribution, inflation rate, utility, and incentives. It's the economics behind the token.
Understanding the Concept
Tokenomics determine if a project will succeed or become a rug pull. Good tokenomics align incentives between users, developers, and investors. Bad tokenomics create death spirals where early holders dump on new buyers. Check these red flags: huge team allocations (>20%), low circulating supply with massive unlocks coming (dilution bomb), no actual utility (just a meme), or hyperinflationary emissions. Green flags: reasonable supply (not 100 trillion tokens), utility beyond speculation, fair distribution, token burns or buybacks creating deflationary pressure. Bitcoin's tokenomics are perfect—fixed 21M supply, predictable issuance, clear utility. Most altcoins? Garbage.
Real-World Example
You research a new DeFi token. Total supply: 1 billion. Circulating: 100 million. Team holds 400 million unlocking next month. That's a dump waiting to happen. You pass.
How Strykr Helps
Strykr tracks Tokenomics developments across the crypto ecosystem. Our AI provides real-time insights and alerts to help you navigate the market with confidence.
Try Strykr Free