Tokenomics refers to the economic model that governs how tokens (cryptographic assets) function within a blockchain ecosystem. It includes token supply, distribution, utility, incentives, and governance mechanisms that drive user participation and network security.

A common use case for tokenomics is cryptocurrency networks, where tokens serve as rewards for miners, validators, or participants contributing to decentralized applications. Well-designed tokenomics ensure fair distribution, long-term sustainability, and demand-driven growth of a blockchain project. Elements like staking, burning mechanisms, and inflation control are carefully planned to maintain value and encourage ecosystem adoption.