Tokenomics is the study of a token's economic design — how it's created, distributed, used, and destroyed. It covers supply mechanics, incentive structures, and value capture mechanisms that determine whether a token is likely to appreciate or depreciate over time.

Why does circulating supply matter more than total supply?

Circulating supply tells you how many tokens are actually tradeable right now. A token might have a low price, but if billions more are about to unlock from vesting schedules, the selling pressure could crush the price. Always check what percentage of total supply is currently circulating.

What is a vesting cliff and why is it dangerous?

A vesting cliff is a specific date when a large batch of locked tokens becomes available for sale at once. When insiders, VCs, or team members can suddenly sell millions of tokens, it creates massive sell pressure. Check unlock schedules on token.unlocks.app before buying.

Tokenomics 101: How to Evaluate a Crypto Token Before Investing

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Fundamental Analysis

7 min

Tokenomics 101: How to Evaluate a Crypto Token Before Investing

Supply mechanics, emission schedules, vesting cliffs, burn mechanisms, and token utility — the complete framework for analyzing any token's economics.