Tokenomics

The economic design of a token: supply schedule, emission rate, vesting terms, utility, distribution, and value-capture mechanisms. Sound tokenomics aligns long-term holder incentives with protocol growth; poor tokenomics creates perverse incentives that extract value from early participants. The most important questions for any DeFi allocation: how much new supply is created each year, who receives it, and what mechanisms (if any) reduce circulating supply.