Tokenomics

Tokenomics is the study of how a cryptocurrency is designed and distributed—basically the economic rules that govern a digital coin or token. You'll hear this term constantly when researching crypto projects, because it directly affects whether a token might gain or lose value. A project's tokenomics includes things like how many tokens exist, how they're released over time, who gets them, and what they're actually used for. For example, if CoinX releases 1 million new tokens every month but burns (destroys) 2 million, the shrinking supply might push the price up—but if the team holds 90% of all tokens, they could dump them anytime and crash the price. Understanding tokenomics helps you spot red flags before investing.