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Tokenomics

The economic design of a cryptocurrency: its supply, distribution and incentives.

CryptoIntermediate

Definition

Tokenomics covers total and circulating supply, how tokens were allocated to insiders and the public, inflation rate, burning and staking rewards. Bitcoin's hard cap of 21 million coins is a well-known example.

Watch out for

Large insider allocations that unlock later can create heavy selling pressure.

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