Deciphr Academy
Module 13 · Flashcards

Tokenomics, vesting and unlocks: key words

Read the word, say the meaning out loud, then open the card.

Tokenomics

How a token's supply and demand are designed: how many exist, how many more will be made, who holds them and when they unlock. Source

Max supply

The most tokens that can ever exist, minus any burned. Some tokens, such as ether, have none. Source

Total supply

The tokens that exist right now, including locked ones, minus any burned. Source

Circulating supply

The tokens available in the market now. It leaves out locked, reserved and burned tokens. Source

Market cap

A token's price times its circulating supply. Source

Fully diluted valuation (FDV)

A token's price times its total or max supply, as if every token were already in circulation. Sites differ on which supply they use. Source

Low float

Binance Research's term for tokens that launch with only a small part of their supply in circulation. Source

Token allocation

How a project splits its supply between groups such as the team, investors, a treasury and the community. Source

Vesting

Releasing tokens to their owner bit by bit, according to a schedule. Source

Cliff

A date before which no tokens vest. In OpenZeppelin's code, the months before it vest all at once on that date. Source

Lock-up

A rule that stops holders selling for a set time. For company shares, most last 180 days. Source

Unlock

The moment locked or vesting tokens become free to move, adding to circulating supply. Source

Token generation event (TGE)

The moment a project first creates and issues its token. Arbitrum counted its first team and investor unlocks from it. Source

Emissions

New tokens created on a schedule, for example as staking rewards. Source

Burn

Removing tokens for good, usually by sending them to an address nobody controls. Source

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