Guides
How to read tokenomics
Updated 2026-03-20
Tokenomics is the economic design of a token: how many exist, who gets them and when. It is the part of a whitepaper that most directly affects anyone holding the token.
Supply
Total supply is the maximum number of tokens. Circulating supply is how many are actually tradable today. A large gap between the two means many tokens will enter the market later.
Allocation
| Group | Typical share | What to check |
|---|---|---|
| Team | 10–20% | vesting of at least 2–4 years |
| Investors | 10–25% | price they paid, lock-up |
| Community / ecosystem | 30–50% | who controls the funds |
| Treasury | 10–20% | governance rules |
Vesting and unlocks
Vesting releases tokens gradually. Large "cliff" unlocks — when a big batch becomes available at once — often lead to selling pressure.
Emissions
Some tokens are minted continuously as staking rewards. High emissions dilute existing holders, much like printing new shares.