What Is the Primary Purpose of ‘Tokenomics’ in a New Cryptocurrency Project?

Tokenomics refers to the economics of a cryptocurrency token, including its supply, distribution, utility, and incentive structure. Its primary purpose is to create a sustainable and value-accretive ecosystem by aligning the incentives of all participants (users, developers, investors).

A well-designed tokenomic model is crucial for the long-term success of the project.