Popular Guide

Understanding Tokenomics

Tokenomics is the foundation of any successful crypto project. Learn how to design sustainable token economics that attract investors and drive growth.

What is Tokenomics?

Tokenomics (token + economics) refers to all the factors that make a cryptocurrency valuable and sustainable. It includes:

Supply

Total, circulating, and max supply

Distribution

How tokens are allocated

Utility

What the token is used for

Mechanics

Burns, taxes, rewards, vesting

Recommended Token Allocation

Presale

30-50%

Liquidity

20-30%

Team

10-15%

Marketing

5-10%

Development

5-10%

Reserve

5-10%

* Percentages are guidelines. Adjust based on your project's specific needs.

Common Token Features

Burn Mechanism

Permanently removes tokens from circulation, potentially increasing value

Good for deflationary models

Reflection/Rewards

Distributes a percentage of transactions to all holders

Incentivizes holding

Anti-Whale

Limits maximum wallet holdings or transaction sizes

Prevents price manipulation

Vesting

Locks tokens with gradual release over time

Builds trust, prevents dumps

Red Flags vs Green Flags

Red Flags

✗Team allocation over 20% with no vesting
✗No liquidity lock or lock period under 30 days
✗Hidden mint functions in contract
✗Unrealistic APY promises (1000%+)
✗No clear utility or use case

Green Flags

✓Team tokens locked for 6-12 months minimum
✓Liquidity locked for 1+ years
✓Verified and audited contracts
✓Clear roadmap with achievable milestones
✓Strong utility and real use case

Example: Good Tokenomics

Sample Token: EXAMPLE ($EXM)

Total Supply: 100,000,000

Presale: 40%

Liquidity: 25% (locked 1 year)

Team: 10% (6-month cliff, 12-month vest)

Marketing: 10%

Development: 10%

Reserve: 5%

Buy/Sell Tax: 2% (1% burn, 1% reflection)

Continue Learning

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