**How to evaluate the tokenomics of a project? A simple framework**

1. Supply

Key question: based on supply alone, will the token be able to hold/increase in price, or will it be eroded by inflation?

General Supply
- How many tokens exist today?
- How many will exist in the future? Is there a cap on supply?
 rate.

Emission
- Is the emission fixed or changing? 
- If changing, what factors determine it?

Allocations/vesting
- How was the supply originally allocated to investors, community, team? Are there groups that own a significant portion of the offering and can put significant selling pressure after the end of vesting?
- What is the vesting schedule for the largest holders?

2. Demand

Key question: why would anyone want to hold this token?

Return on investment
- Excluding price growth, what is the return on simply holding the token (e.g., at the expense of stealing)?
- Is there an opportunity to make additional profits through pharming?
- Is the income of the protocol distributed to token holders? 
- Does rebasing occur as inflation occurs?

Community
- How active are the project's Discord and Twitter? 
- Is there some sort of ecosystem fund? Grants? Hackathons? 
- How active is the protocol in engaging the community? 
- Are there one-time or ongoing initiatives to create additional demand for the token?

Locks
- Is there a token blockchain program? If so, what amount of rewards is allocated to it and what are the requirements to get those rewards?
- What percentage of the total number of tokens in circulation is locked?

- What additional sales pressure will arise once the locks expire?
- Are there any non-monetary benefits from stacking and locking tokens (e.g., increased voting rights)?

It is worth noting that even taking into account all of these factors alone does not guarantee token growth or project success, but is only one of the necessary aspects, in addition to the market phase, the hype around a particular direction, and others

Below you will find the basic questions to ask yourself when analyzing the tokenomics of a project - this scheme will not predict the price of a token to the nearest cent, but it will help you predict the dynamics and evaluate the prospects.