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Onchain Economics
Tokenomics

Tokenization

Converting ownership rights in real-world assets into blockchain tokens.

In-Depth Explanation

Tokenization puts traditional assets on-chain: real estate, art, commodities, securities. Benefits include fractional ownership, programmable compliance, and potentially more liquid markets. Challenges remain around legal recognition, custody, and connecting on-chain tokens to off-chain enforcement. The BlackRock and Franklin Templeton tokenized funds show growing institutional interest.

Related Terms

Security Token

A blockchain token that represents ownership of a real-world asset or investment contract.

Real World Assets

RWA

Traditional financial assets like treasuries, real estate, or private credit that have been tokenized and brought on-chain.

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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.

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