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