Understanding Tokenomics

Tokenomics is the economics of a crypto token: how it's distributed, what utility it provides, how supply changes over time, and what mechanisms capture value. We focus on the FDV/MCap ratio as a key metric.

Fully Diluted Valuation (FDV) is what the market cap would be if all tokens were in circulation. If FDV is much higher than current market cap, it means massive token unlocks are coming — diluting current holders.

Tokenomics is weighted at 8% in our Value Score. A MCap/FDV ratio close to 1.0 means most tokens are already circulating — less dilution risk and more mature tokenomics.