Core Tokenomics Concepts
- Tokenomics: The economics of a token, including its creation, distribution, and utility.
- Token: A digital asset built on a blockchain.
- Utility Token: A token with specific use cases within a platform.
- Security Token: A token representing ownership or investment in an asset.
- Governance Token: A token that grants voting rights in a decentralized system.
- Stablecoin: A token pegged to a stable asset like fiat currency.
- NFT (Non-Fungible Token): A unique, indivisible token representing ownership.
- Fungible Token: A token interchangeable with others of the same type.
- Token Supply: The total number of tokens in circulation.
- Circulating Supply: The number of tokens currently available for trading.
Token Distribution
- Initial Coin Offering (ICO): A fundraising method using tokens.
- Initial Exchange Offering (IEO): Token sale conducted on a cryptocurrency exchange.
- Initial DEX Offering (IDO): Token sale conducted on a decentralized exchange.
- Airdrop: Free distribution of tokens to wallet addresses.
- Vesting: Locking up tokens for a specific period before release.
- Token Burn: Permanently removing tokens from circulation.
- Minting: Creating new tokens.
- Token Allocation: Distribution of tokens among stakeholders.
- Private Sale: Early token sale to select investors.
- Public Sale: Token sale open to the general public.
Token Utility and Functionality
- Staking: Locking up tokens to support network operations.
- Yield Farming: Earning rewards by providing liquidity.
- Liquidity Mining: Rewarding users for adding liquidity to a pool.
- Gas Fees: Transaction fees paid in tokens.
- Governance: Using tokens to vote on protocol changes.
- Token Burn Mechanism: Reducing supply by burning tokens.
- Inflationary Token: A token with an increasing supply over time.
- Deflationary Token: A token with a decreasing supply over time.
- Token Utility: The purpose or function of a token within its ecosystem.
- Token Velocity: The rate at which tokens are exchanged.
Economic Models
- Inflation Rate: The rate at which new tokens are created.
- Deflation Rate: The rate at which tokens are removed from circulation.
- Tokenomics Model: The economic framework of a token.
- Monetary Policy: Rules governing token supply and distribution.
- Token Value: The market price of a token.
- Market Cap: The total value of all tokens in circulation.
- Fully Diluted Market Cap: The market cap if all tokens were in circulation.
- Token Scarcity: Limited supply to increase token value.
- Token Demand: The desire to hold or use a token.
- Token Incentives: Rewards for participating in the ecosystem.
Regulation and Compliance
- KYC (Know Your Customer): Verifying user identities.
- AML (Anti-Money Laundering): Preventing illegal financial activities.
- Securities Law: Regulations governing security tokens.
- Utility Token Regulation: Rules for tokens with specific use cases.
- Taxation: Tax implications of holding or trading tokens.
- Compliance: Adhering to legal and regulatory requirements.
- Token Classification: Categorizing tokens as utility, security, or payment tokens.
- Regulatory Sandbox: A controlled environment for testing token projects.
- Legal Framework: Laws governing token issuance and use.
- Token Audit: Reviewing a token’s code and economics for security and compliance.