Tokenomics

Tokenomics, a combination of “token” and “economics”, is a catch-all term for the characteristics that provide a certain cryptocurrency value and appeal to investors. This covers everything from a token’s quantity and issuance method to factors like its utility.

A project that has thoughtful and well-designed incentives to buy and hold tokens for the long haul is more likely to outlive and perform better than a project that hasn’t created an ecosystem around its token, so tokenomics is a crucial concept to take into account when making an investment decision. A solid base frequently leads to greater demand over time as more investors pour money into the enterprise, which raises pricing.