Unit 3 · Level 2 · The Long Game
Tokenomics: reading crypto supply
Tokenomics = the economic design of a token: how many exist, how many will ever exist, who holds them, and WHEN locked tokens unlock. Two coins with identical charts can have opposite futures if one has a tsunami of insider tokens unlocking next month.
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What you get asked
Match the tokenomics term to its meaning
Bitcoin's famous property: max supply 21 million, schedule carved in code. Most tokens are far more… creative.
A token's chart looks great, but 40% of supply unlocks to early investors next month. The risk?
A supply flood the current price never had to absorb. Unlock calendars are public (tokenomist sites track them). Checking one takes a minute and has saved fortunes. Supply and demand, always and forever.
Why did 'low float, high FDV' tokens burn so many buyers?
Then years of unlocks dilute holders relentlessly. FDV = price × MAX supply, the valuation if everything unlocked today. When FDV is 10x the market cap, you're buying into a decade of scheduled selling.
Before buying any token, check who holds it and when their tokens ___.
The three-minute tokenomics check: supply schedule, insider allocation, unlock calendar. Most people never look. You will.
Bitcoin halvings cut new supply issuance every ~4 years. Through your supply-and-demand lens, halvings are…
Same demand meeting fewer new coins. Whether it's 'priced in' each cycle is eternally debated, but the mechanism is pure League 1 economics. You can now read any token's design critically. 🐜
The rest of this unit
DCA, market cap, tokenomics and earnings: telling investments from trades.