What Does Tokenomics Refer to In Web3

Feb 18, 2025 White Line Ibiam Wayas

[{"selector":"#anim-ab38f2fc-aa14-447d-bfcd-cab8f5f29d74","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-67327d2a-7f62-4763-8dc6-7bac6a60ee4a","keyframes":{"transform":["translate3d(0px, 3340.27346%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-26baba1e-9131-4081-bc12-5a95e0376f7e","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-eceba1e8-a3ad-490b-a84e-831cb5b2a0c9","keyframes":{"transform":["translate3d(0px, 242.64867%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] White Line Tokenomics is short for "token economics." In the context of Web3, it refers to the economics of a cryptocurrency or token.

What is the primary goal of tokenomics?

[{"selector":"#anim-9624fe76-7ca0-4a49-b3c0-c42f9adbfe1d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a20c6d12-7c9e-4b9d-b7b3-384e889d1482","keyframes":{"transform":["translate3d(0px, 3340.27346%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6b809820-df38-408b-b7d0-16f8e1506881","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-53ec7d14-db07-4dbd-81b5-6cba0b37c8fe","keyframes":{"transform":["translate3d(0px, 164.53574%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-baefe0b3-f894-498c-a6c5-603c4098f329","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4d560ae5-3e3a-47e6-bfab-bb62e63b785f","keyframes":{"transform":["translate3d(0px, 569.21681%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] White Line Tokenomics is the assessment of a token's supply, distribution, and utility. These metrics help investors determine the value of a token and the overall health of its associated ecosystem.

[{"selector":"#anim-1094bd62-82bf-4aee-8fce-0967ae8043fd","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-35debada-fb53-4894-838a-05422f6982c4","keyframes":{"transform":["translate3d(0px, 3340.27346%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9f1a1860-2f4e-43a1-953f-d27661c7ed4f","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-26b06f9f-fdf5-417b-8f1e-b0319c85e9f5","keyframes":{"transform":["translate3d(0px, 316.08199%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] White Line Here’s a breakdown of important information that tokenomics reports entail.

Token Supply and Distribution

[{"selector":"#anim-c0713935-3068-4234-bdb6-3a152c43f9e6","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-255b855c-0066-4b81-8deb-4a0247e7f74d","keyframes":{"transform":["translate3d(0px, 3340.27346%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b468add1-1d37-4811-bd29-b0d828d354e2","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9c1e5e8a-348f-49ba-a2a1-a0a2851c7d9e","keyframes":{"transform":["translate3d(0px, 195.30265%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-02abccae-48bd-463b-8161-80b7226deba7","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c6e621de-f643-41c7-8fdc-03ad4daec1e4","keyframes":{"transform":["translate3d(0px, 569.21681%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] White Line This reveals the total number of tokens created, and how they are distributed, whether through initial coin offerings, airdrops, or mining.

Token Utility

[{"selector":"#anim-f137fc31-9200-406a-9001-5e7b6a83d679","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f800bfc6-f180-4499-91f9-4765df39f365","keyframes":{"transform":["translate3d(0px, 3340.27346%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-baa77fdc-f0b5-4ae5-a79e-91387b941514","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7b236edc-c94a-46e4-bf76-58b6bf67bf92","keyframes":{"transform":["translate3d(0px, 242.64867%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-48fb66da-639b-4501-a422-207cd63e3d9f","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-89cfd5af-14b2-4512-96be-94097a9be018","keyframes":{"transform":["translate3d(0px, 994.44514%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] White Line This tells investors about the purpose of a token within its ecosystem. Basically, what it can be used for.

Governance

[{"selector":"#anim-14d816b6-3a28-4f9d-b703-1d47d8e30376","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d1f1fe46-7d3a-47a6-bad4-f2f5b5007714","keyframes":{"transform":["translate3d(0px, 3340.27346%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f723caca-d33d-42ae-ab5e-5409459db8ba","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-10a72f19-fbad-45fa-b42c-8ff090dcc9b4","keyframes":{"transform":["translate3d(0px, 164.53574%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-835885a2-41fe-4ba3-965f-13db3379462a","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f6c5dc9f-6877-4b6d-95c7-e35c9c0122f6","keyframes":{"transform":["translate3d(0px, 994.44514%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] White Line In many Web3 projects, tokens grant holders the right to participate in governance decisions. This would tell investors if a token is also for governance.

Does Bitcoin have tokenomics?

[{"selector":"#anim-22aa4178-5999-46d5-8475-242dd40e0cd8","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-970aca03-f733-4e0b-a3ac-df9db7b469d6","keyframes":{"transform":["translate3d(0px, 3340.27346%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3f3c3667-035d-452f-91cb-7420b629dd9a","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f5bad5c4-4f16-40d2-88f3-7a11f5e39a89","keyframes":{"transform":["translate3d(0px, 195.30265%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-901d927c-0fcf-48bd-817f-061da55bbac1","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d15c23f8-7873-4ecf-8cf8-669201901b3c","keyframes":{"transform":["translate3d(0px, 569.21681%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] White Line Yes, Bitcoin has tokenomics, although it predates the widespread use of that term. For instance, Bitcoin has a hard cap of 21 million coins.

Is Uniswap a Layer 1 Blockchain?

Next Up White Line Read Now