This is a chapter from **Tokenomics for Builders: The Practitioner’s Guide to Token Design.*

This document and all resources, threads, models, and materials linked to within are for informational purposes only. None of this document’s contents, nor the contents linked to within, should be construed as legal advice, financial advice, technical advice, investment advice, accounting advice, or representations in any way regarding legal, technical, financial, investment, or accounting matters by the author. The author is not a lawyer or financial advisor in any jurisdiction, and highly encourages readers to engage with registered professionals to ensure compliance with any and all relevant laws and regulations.*

Tokenomics can be a loaded term - it’s easier to first answer what it isn’t, rather than what it is.

Tokenomics is not a token’s…

• Max supply number
• Pie chart with 10% - 20% allocated to the team
• Emissions schedule
• Staking yield
• Buyback and burns
• Utility

These are all elements **related to a protocol's tokenomics, but tokenomics is a much more holistic concept. Here are two helpful definitions:

“[Tokenomics] includes everything about the mechanics of how the asset works, as well as the psychological or behavioral forces that could affect its value long term.”

Source: Tokenomics 101

Tokenomics is a term that captures a token’s economics. It describes the factors that impact a token’s use and value, including but not limited to the token’s creation and distribution, supply and demand, incentive mechanisms, and token burn schedules. Source: What Is Tokenomics and Why Does It Matter?