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Tokenomics is the study of the economic principles and mechanisms that underlie the creation, distribution, and use of tokens in a blockchain-based system. This can include the design of the token issuance and distribution, the use cases, and the overall economic model of the system. A good design can help to ensure that a project is sustainable, and that the value of the token is aligned with the health and growth of the underlying ecosystem.

Tokenomics can also include factors such as: the total supply of tokens, the distribution, burning, vesting, utility, governance, incentives and penalties for holding or staking, and much more.