Token economics

Robert Wayne Gregory and Tobias Mini

Chapter 53 in Elgar Encyclopedia of Cryptocurrencies, Blockchain and DLT, 2026, pp 256-261 from Edward Elgar Publishing

Abstract: Tokenomics, the economic framework governing digital tokens and the behavior of their users in blockchain networks, plays a crucial role in incentivizing participation and sustaining decentralized ecosystems. This chapter explores key aspects of tokenomics, including token supply, distribution, and utility. We discuss governance mechanisms through token-based voting, various tokenomic strategies such as token burning, minting, and staking, and risk management and collateralization mechanisms. Additionally, we highlight how these mechanisms ensure network stability, promote decentralization, and align participant incentives. By analyzing real-world examples, this chapter demonstrates the importance of tokenomics in shaping the sustainability and success of blockchain-based networks and decentralized finance protocols.

Keywords: Tokenomics; Digital token; Cryptocurrency; Blockchain; Decentralization; Incentive system (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035339952
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