Tokenomics Quality Score

WHAT TOKENOMICS MEANS. The supply schedule, distribution and demand mechanics of a token: how many exist, when more arrive, who holds them, and what creates reasons to hold. Price is set at the margin by demand against available sell-side liquidity; circulating supply is the stock that, multiplied by price, gives market capitalisation. Future issuance can increase supply and create dilution or selling pressure, all else equal - but that effect is economic rather than mechanical, which is why the schedule matters and a single supply number does not settle anything.

THE TWO MORE DEFENSIBLE DIMENSIONS. Float - circulating over total supply - genuinely bears on future dilution, with one important qualification: it is a SNAPSHOT, not a schedule. It says how much is outstanding now, not when the remainder unlocks, which lives in the vesting documentation.

The volume-to-market-capitalisation ratio is commonly used and is properly a TURNOVER proxy rather than a liquidity measure. Real liquidity assessment needs bid-ask spreads, executable depth, resilience and price impact, plus screening for venue quality and wash trading - none of which turnover captures, which is why heavily wash-traded markets score as liquid on this ratio.

DEMAND SINKS - staking, DeFi utility - describe uses that may absorb supply, and the qualification matters. Staking or depositing does not necessarily reduce reported circulating supply or effective liquid supply one for one: the native token may be locked or escrowed while a redeemable or transferable receipt token preserves the economic position, so the holder is still exposed and can still exit. The effect depends on lockup terms, withdrawal queues, and the supply methodology the data source uses.

THE INSIDER-ALLOCATION PROXY IS DERIVED FROM DRAWDOWN OFF THE HIGH, AND THIS DOES NOT WORK. Drawdown measures how far price has fallen from its peak. Insider allocation is a fact about distribution. There is no stable monotonic relationship between the two: a price fall can be caused by insider selling, and equally by a market-wide decline, a failed product, a bubble unwinding, or a rotation - so the proxy is not even consistent in direction. High insider allocation might be followed by selling pressure, by restricted float, by price support, or by no observable price effect at all. This is a textbook construct-validity failure: the metric measures something real and not the thing it is named after. The direct evidence would be published allocation and vesting records, supplemented where possible by verified labelled on-chain addresses - noting that on-chain balances alone do not identify insiders without reliable attribution and coverage.

MARKET-CAP RANK AS A QUALITY DIMENSION is also weak. Market capitalisation is price times circulating supply, so rank moves with price; size may proxy adoption, but it does not establish that a token's economic DESIGN is sound, which is what this analysis claims to assess.