Emissions
New tokens distributed by a protocol as incentives, typically to liquidity providers or users.
In-Depth Explanation
Emissions are how protocols bootstrap liquidity and usage. They're often the largest cost for DeFi protocols—if a protocol earns $1M in fees but emits $5M in tokens, it's operating at a loss. Sustainable protocols aim to reduce emissions over time as organic usage grows.
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Related Terms
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View all →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.
Vesting
A schedule that gradually releases tokens to recipients over time, preventing immediate selling.