What are Token Metrics?
Token metrics is a plan on how to release tokens and share them among stakeholders. In particular, it is the percentage of tokens assigned to different categories of investors and stakeholders. Token metrics is also known as Tokenomics or Coin Economics. It is included in a white paper or a token sale website so that investors can see the potential for the coin to grow in value over time.
A Deeper Look at This Term
When a startup plans to create, release, and sell digital tokens on the blockchain, they have to schedule the actual numbers. That is because the numbers are going to influence the token price and value in the marketplace.
For example, a startup has to have a cap on how many tokens it will in order to control inflation. Too many tokens can make the token valueless, and too few make it difficult for investors to be part of the project.
They also have to define the number of tokens that go to investors and the development team, while setting aside tokens for future funding needs. Too many tokens in the developer’s hands could make them look greedy, and too little could make it seem they are not confident about the project succeeding.
That is what Token Metrics or Coin Economics is all about.
← Back to Dictionary
