Tokenomics

The economic design of token flows — how tokens are created, distributed, and destroyed to incentivize desired system behavior.

Tokenomics encompasses supply mechanics (inflation, burning, vesting), distribution (mining rewards, airdrops, liquidity incentives), and utility (governance rights, staking, fee payment). Well-designed tokenomics creates feedback loops that align individual incentives with network health.

Systems Connection

Tokens are the primary flow in cryptoeconomic systems, analogous to currency in economies or ATP in cells. The tokenomic design shapes state evolution — how value accumulates, circulates, and exits the system. Poor tokenomics creates destabilizing feedback; good tokenomics enables adaptive resilience.

See Also

• Cryptoeconomics — parent domain
• Mechanism Design — broader incentive engineering
• Flow — systems concept tokens instantiate