# Article Introduction
**What is Tokenomics: How Token Allocation, Inflation Mechanisms, and Burn Rates Work**
This comprehensive guide explores the foundational economics shaping cryptocurrency projects through tokenomics design. Discover how Bitcoin, Ethereum, and emerging blockchains distribute tokens among teams, investors, and communities while managing supply through inflation, deflation, and strategic burn mechanisms. The article examines token allocation strategies, compares fixed versus controlled supply models, and reveals how burn rates create scarcity and enhance value. Learn how governance tokens align stakeholder incentives and drive network participation. Whether you're an investor evaluating project sustainability on Gate, a developer building blockchain infrastructure, or a crypto enthusiast seeking deeper protocol understanding, this guide provides actionable insights into tokenomics frameworks that determine long-term project viability and market performance.