Tokenomics

Tokenomics refers to the economic design and structure of a cryptocurrency or token, including factors like supply, distribution, incentives, and governance. Tokenomics outlines how the token is used within the ecosystem, how it's issued, and the mechanisms that affect its value, such as staking, burning, or reward systems. Strong tokenomics can help drive the adoption and sustainability of a project by aligning the interests of users, developers, and investors. For example, Ethereum’s tokenomics involve gas fees paid in ETH for transactions and smart contract interactions, as well as staking incentives with Ethereum 2.0.