Tokenomics MCQs September 29, 2025 by u930973931_answers 50 Score: 0 Attempted: 0/50 Subscribe 1. : In tokenomics, what does “circulating supply” mean? (A) Total number of tokens ever created (B) Tokens locked in smart contracts (C) Tokens currently available and tradable in the market (D) Tokens reserved by developers 2. : What is the primary function of a token burn? (A) Increase the circulating supply (B) Reduce the circulating supply (C) Reward miners (D) Create inflation 3. : Which token type usually represents ownership or equity in a project? (A) Utility Token (B) Governance Token (C) Security Token (D) Meme Token 4. : What does “staking” generally involve? (A) Destroying tokens permanently (B) Locking tokens to support network operations (C) Selling tokens on exchanges (D) Mining new tokens 5. : A fixed maximum supply of tokens typically leads to which effect? (A) Hyperinflation (B) Deflationary pressure (C) Unlimited issuance (D) Higher staking rewards 6. : Which metric compares a token’s market cap to its realized value? (A) Price-to-Earnings ratio (B) NVT ratio (C) MVRV ratio (D) Staking ratio 7. : Utility tokens are primarily used for: (A) Legal compliance (B) Accessing services within an ecosystem (C) Paying government taxes (D) Stock dividends 8. : What is the main purpose of vesting schedules in tokenomics? (A) Release all tokens immediately (B) Prevent token holders from selling too early (C) Increase inflation rate (D) Burn unsold tokens 9. : Which type of token is used for voting on protocol decisions? (A) Governance Token (B) Stablecoin (C) Security Token (D) Wrapped Token 10. : Stablecoins are a part of tokenomics to: (A) Reduce price volatility (B) Increase inflation (C) Generate mining rewards (D) Replace smart contracts 11. : What does “token utility” refer to? (A) The number of holders of the token (B) The actual use case or purpose of the token (C) The exchange listing price (D) The inflation rate of the token 12. : A project’s “fully diluted market cap” assumes: (A) Only half the tokens are in circulation (B) All possible tokens are already issued (C) Tokens are burned yearly (D) Team holds no tokens 13. : Inflationary tokens: (A) Reduce over time (B) Increase circulating supply regularly (C) Have fixed maximum supply (D) Can never be staked 14. : Which is an example of a deflationary mechanism? (A) Token minting (B) Block rewards (C) Token burning (D) Vesting schedule 15. : “Token distribution” in tokenomics usually includes: (A) Airdrops, sales, team allocation (B) Mining only (C) Token burning only (D) Exchange trading fees 16. : What is the benefit of having a capped token supply? (A) Predictable scarcity (B) Unlimited inflation (C) Unlimited staking rewards (D) Continuous dilution 17. : Tokenomics directly impacts: (A) Token price stability and adoption (B) Internet speed (C) Blockchain size only (D) Government policies 18. : In tokenomics, liquidity pools are used for: (A) Destroying tokens (B) Mining coins (C) Facilitating decentralized trading (D) Limiting governance rights 19. : What happens if too many tokens are released too quickly? (A) Price may crash due to oversupply (B) Price will always rise (C) Market cap decreases automatically (D) Inflation stops 20. : “Token vesting” mainly protects: (A) Exchanges (B) Project teams and long-term investors (C) Miners (D) Governments 21. : What does “token lockup” mean? (A) Tokens permanently burned (B) Tokens cannot be sold for a period (C) Tokens automatically staked (D) Tokens used for governance 22. : Which type of token is designed to maintain a stable value? (A) Security Token (B) Stablecoin (C) Governance Token (D) Utility Token 23. : What is a token buyback program? (A) Exchange listing mechanism (B) Project repurchasing tokens to reduce supply (C) Investor selling program (D) Airdrop to community 24. : Tokenomics helps investors understand: (A) Token supply, demand, and value drivers (B) Internet usage (C) Mining equipment setup (D) Government taxation policies 25. : “Hard cap” in tokenomics refers to: (A) The minimum amount of funds a project can raise (B) The maximum amount of funds a project will accept (C) Unlimited fundraising (D) Tokens reserved for the team 26. : What does “soft cap” represent? (A) Maximum tokens issued (B) Minimum target funds for a project (C) Token burning threshold (D) Airdrop allocation 27. : Which factor does NOT directly affect tokenomics? (A) Supply mechanism (B) Demand use cases (C) Governance rights (D) The weather 28. : A high token inflation rate usually leads to: (A) More scarcity (B) Reduced value per token (C) Stronger governance (D) Token burn events 29. : What is a “whale” in tokenomics? (A) A large crypto exchange (B) A trader holding a huge amount of tokens (C) A deflationary mechanism (D) A governance token holder only 30. : Tokenomics of Bitcoin is based on: (A) Unlimited issuance (B) Fixed maximum supply of 21 million coins (C) Continuous inflation (D) Weekly token burns 31. : What does “liquidity mining” reward? (A) Developers (B) Users who provide liquidity (C) Exchanges (D) Governments 32. : Tokenomics ensures: (A) Balance between supply and demand (B) Internet speed increase (C) Stock market regulations (D) Blockchain centralization 33. : What is a “governance proposal”? (A) Suggestion to change token supply (B) Community-driven decision-making process (C) Token burning method (D) Investor airdrop 34. : What does “token liquidity” mean? (A) Ease of buying/selling without big price changes (B) Token burning speed (C) Inflation percentage (D) Vesting duration 35. : What is the purpose of token airdrops? (A) Distribute tokens for free to increase adoption (B) Burn excess tokens (C) Pay transaction fees (D) Reduce liquidity 36. : What happens in a deflationary token model? (A) Token supply decreases over time (B) Token supply always increases (C) Supply is infinite (D) Inflation grows 37. : Which is a common use of governance tokens? (A) Mining rewards (B) Voting on protocol changes (C) Token burning (D) Paying gas fees 38. : What does “token allocation” mean? (A) How tokens are distributed among stakeholders (B) How tokens are mined (C) How tokens are burned (D) How tokens are priced 39. : “Market capitalization” in tokenomics is calculated by: (A) Circulating supply × current price (B) Total supply × inflation rate (C) Token burns × supply (D) Exchange volume × liquidity 40. : Why are token burns often used? (A) Increase scarcity and support price (B) Reduce trading activity (C) Pay miners (D) Reward governments 41. : In tokenomics, “vesting cliff” means: (A) Tokens are immediately available (B) Tokens unlock only after a set initial period (C) Tokens are permanently locked (D) Tokens burned by default 42. : What is a “dual-token model”? (A) Project using two types of tokens for different purposes (B) Project using tokens and fiat (C) Token with two supply caps (D) Token burned twice 43. : Which type of supply keeps increasing without limit? (A) Fixed supply (B) Inflationary supply (C) Deflationary supply (D) Stable supply 44. : Which factor encourages holding a token long-term? (A) Staking rewards (B) Unlimited inflation (C) Token dumps (D) Market crashes 45. : Tokenomics of Ethereum after EIP-1559 includes: (A) Only inflationary supply (B) Both issuance and token burns (C) Unlimited burning (D) Fixed supply cap 46. : What is the purpose of token rewards in DeFi? (A) Incentivize user participation (B) Increase inflation only (C) Support fiat money (D) Burn circulating supply 47. : Which factor can negatively affect tokenomics? (A) Poor distribution strategy (B) Strong utility (C) Limited supply (D) Active governance 48. : What is an “IDO allocation” related to tokenomics? (A) Tokens reserved for liquidity pool participants (B) Tokens burned before listing (C) Tokens only given to developers (D) Tokens locked forever 49. : Why do some projects create governance tokens separately from utility tokens? (A) To separate voting rights from usage rights (B) To reduce inflation (C) To burn tokens faster (D) To avoid exchanges 50. : What is the ultimate goal of tokenomics design? (A) Create a sustainable and valuable token ecosystem (B) Print unlimited money (C) Eliminate all volatility (D) Avoid blockchain usage