Glossary
Tokenomics
The supply design of a token: how much exists, who holds it, and how much is released over time.
Tokenomics is the study of a token's supply: total supply, circulating supply, how much each category of holder controls, and the schedule on which new tokens are released.
Three numbers do most of the work. Circulating supply sets the current market cap. The insider allocation tells you how much of it could move at once. The unlock schedule tells you how fast new supply arrives.
A whitepaper section on tokenomics is usually where a token's risk is written down honestly. Read it there rather than inferring the structure from the price chart.
Related terms
Airdrop
Free tokens distributed to wallet addresses, usually to reward early users of a protocol.
AMM
Automated Market Maker — a protocol that prices assets with a formula instead of an order book.
APR vs APY
APR is the yearly rate without compounding; APY includes compounding and is always higher.
ATH
All-Time High — the highest price an asset has ever traded at.
Bear Market
A prolonged decline, conventionally 20% or more from recent highs.
Bull Market
A prolonged rise driven by new demand, easy credit and rising confidence.