Tokenomics.
In plain English
Tokenomics describes the economic rules built into a crypto project: total supply, how new tokens are created, who received them at launch, and what the token is actually used for. A key detail is the vesting schedule, which sets when founders, early investors, and team members can sell, because large releases add supply to a market that may be thin. Another is whether the token has a function, such as paying fees or voting, or exists only to be traded. Some designs destroy tokens over time to reduce supply, others issue steadily to pay participants. All of it is disclosed by the project itself, so verification matters.
01Why it matters
Knowing when insider tokens become sellable tells you when a large amount of new supply can arrive, which is information about the token that its price chart does not show.
02The math, step by step
Say a project has 100,000,000 tokens, with 20,000,000 circulating and 30,000,000 held by insiders vesting over two years. That is 1,250,000 tokens a month entering a market where only 20,000,000 trade, adding roughly 6 percent to the float every month.
Illustrative example. The amounts here are hypothetical, chosen to show how the math works, not real quoted rates or figures.
03What this is NOT
Market cap usually multiplies price by circulating supply and ignores locked tokens. Tokenomics covers the whole schedule, including what has not been released. A project can look small by market cap and be far larger once fully diluted.
04Receipts
Every figure on this page is sourced to a primary document. Tap to open the original.
Plain-English answers from our glossary. Receipts included. Never advice.
Educational tool. Answers come only from ClearMoneySchool's published glossary and are not advice. Why we never give advice