Tokenomics
Tokenomics (“token economics”) refers to the design of a cryptocurrency that encompasses aspects like supply, allocation, and utility.
By Geoffrey Lyons
Published on Aug 2, 2024
Last modified on Feb 26, 2026

Tokenomics (“token economics”) refers to the design of a cryptocurrency that encompasses aspects like supply, allocation, and utility.
There are tens of thousands of cryptocurrencies and they all work in different ways. Bitcoin has a fixed supply of 21 million whereas Ethereum has no supply cap. Solana allows token holders to nominate validators (those who verify transactions), whereas many cryptocurrencies don’t even have validators.
Broadly speaking, these cryptocurrencies have different tokenomics.
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