# Tokenomics

> The economic design of a token: total supply, how it is distributed, and how it changes over time.

Canonical URL: https://fudfomo.co/glossary/tokenomics
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

Tokenomics is short for token economics. It covers questions like: how many tokens will ever exist, who got them at the start, how new ones are created, and how old ones are removed.

Good tokenomics tries to align the interests of users, builders, and long-term holders. Weak tokenomics often shows up as heavy concentration in a small number of wallets, aggressive emissions, or short vesting schedules for insiders.

## Related terms

- [Total Supply](https://fudfomo.co/glossary/total-supply): The maximum number of coins or tokens that will ever exist for a project.
- [Circulating Supply](https://fudfomo.co/glossary/circulating-supply): How many coins or tokens are actually in the market right now and free to trade.
- [Vesting](https://fudfomo.co/glossary/vesting): A schedule that releases tokens to founders, investors, or staff gradually over time.
- [Burning](https://fudfomo.co/glossary/burning): Permanently destroying tokens by sending them to an address nobody can spend from. Reduces supply.

## See the full catalogue

What The Block! covers more than 2,000 plain-English crypto terms, delivered as embeddable hover-state tooltips for crypto exchanges. https://wtb.fudfomo.co