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Tokenomics refers to the economic model behind a cryptocurrency or token, including its distribution, supply limits, inflation rate, and utility within the ecosystem. It encompasses aspects like how tokens are created, how they’re allocated (e.g., to the team, investors, or community), and how they are used in the project (e.g., governance, staking, or transaction fees). A well-designed tokenomics structure ensures that a project has long-term viability, incentivizes participation, and prevents inflation or excessive centralization. Evaluating tokenomics helps investors assess the sustainability and potential growth of a project, as poorly designed tokenomics can lead to inflation, centralization of power, or a lack of utility.