Understanding Tokenomics: The Basics of a Strong Crypto
Tokenomics is the invisible backbone that supports any serious crypto project. Too often overlooked, it's actually the first thing you should analyze before investing in a token or blockchain.
1. Maximum Supply
40M tokens
This is the total limit of tokens that can ever exist. It protects against dilution and sets a scarcity similar to gold for Bitcoin.
2. Initial Allocation
15% of supply
Allocated to the team, investors, or community at launch. Too concentrated = risk of massive dumping. Too spread out = little means to support the project.
3. Gradual Vesting
50k tokens/month
The tokens aren't all available from the start. They’re “unlocked” bit by bit, which protects the market from excessive volatility.
4. Concentration of Large Holders
20%
A figure to watch: if a few wallets control too much of the supply, they can manipulate prices or “dump” the market.
5. Circulating Supply
29M tokens
This is the number of tokens that can actually be traded today. A supply far below the maximum shows that the vesting is still ongoing.
6. Annual Inflation
2%
Some projects create new tokens each year to reward the community or fund development. A moderate rate is healthy.
7. Usage
What really gives a token its value is its utility: payments, governance, access to services…
8. Activity Rate
50k transactions/day
The more activity, the livelier the project!
9. Burn Mechanism
1% of fees
Destroying tokens during transactions (“burn”) reduces supply and supports the price in the long run.
10. Governance
The more tokens you hold, the greater your decision-making power.
A healthy system should be balanced to prevent a handful of people from controlling everything.
11. Liquidity
$10M available
The more liquidity on exchanges, the easier it is to buy or sell without affecting the price.
Conclusion
Tokenomics isn't just geek talk—it's the backbone of any serious crypto project.
Before you dive in, check these points. A well-designed token attracts investors… a poorly designed one is quickly forgotten!
The IVT Team
01 August 2025