Tokenomics 102: Digging Deeper on Supply

Understanding a token’s supply, and how that supply is going to change over time, is one of the biggest factors in your ability to get a good return on investing in a project.

By reading the docs or whitepaper, you should get a good sense of how the supply is going to be managed, and what forces will drive demand for the token or cryptocurrency.

The last thing you want to consider with supply is allocation. Do a few investors hold a ton of the tokens which are going to be unlocked soon? Did the protocol give most of its tokens to the community? How fair does the distribution seem? If a bunch of investors have 25% of the supply and those tokens will unlock in a month, you might hesitate bef... See more

Market Cap & Fully Diluted Valuation (FDV)

• Market cap is the circulating supply of tokens multiplied by the token price