Ponzinomics
Derogatory term for token economics that rely primarily on new buyer inflows to pay existing holders, rather than sustainable revenue.
In-Depth Explanation
Ponzinomic projects promise high yields funded by token emissions or new deposits rather than real economic activity. Warning signs: yields far above market rates, heavy reliance on token price appreciation, and inability to sustain returns if growth slows.
Related Terms
Real Yield
Yield derived from actual protocol revenue and economic activity, not token emissions or inflation.
Emissions
New tokens distributed by a protocol as incentives, typically to liquidity providers or users.
Sustainable Yield
Yield that can be maintained long-term because it's backed by real economic activity, not temporary subsidies.
More in Tokenomics
View all →Emissions
New tokens distributed by a protocol as incentives, typically to liquidity providers or users.
Liquidity Mining
Earning token rewards by providing liquidity to a DeFi protocol.
Token Buyback
When a protocol uses revenue to purchase its own token from the open market, reducing circulating supply.
Dividend
Direct distribution of protocol revenue to tokenholders, typically in ETH, stablecoins, or the protocol's native token.