Definition: tokenomics

(TOKEN econOMICS) The incentives for using the tokens of a particular cryptocurrency or crypto protocol. Tokens are issued for many reasons. They may be used for governance, which allows holders to participate in the management of the chain. The more tokens, the more say in making changes. To increase a person's wealth, tokens may be used for pure speculation or for yield, and tokens may be offered to incentivize people for some purpose. For example, the Braintrust talent network, which runs on the Ethereum blockchain, issues tokens for referring workers and organizations (see Braintrust). See token and crypto glossary.