What Is ‘Tokenomics’ and Why Is It Crucial for an ICO?

Tokenomics refers to the economic model of a cryptocurrency, encompassing the supply, distribution, utility, and incentives. It is crucial because it dictates the long-term value proposition and sustainability of the token.

Poor tokenomics, such as excessive inflation or an unfair distribution favoring the team, can lead to price instability and project failure, regardless of the technology.