Definition ∞ DePIN tokenomics refers to the economic model and incentive structures governing tokens within Decentralized Physical Infrastructure Networks. This framework outlines how tokens are distributed, earned, and utilized to motivate participants in building and operating the network. Effective tokenomics are essential for network sustainability and growth. It shapes participant behavior and network health.
Context ∞ The design of DePIN tokenomics is a critical area of focus for project developers and investors. News articles often analyze these models to assess a project’s long-term viability and potential for adoption. A well-structured tokenomics model ensures fair compensation for contributors and promotes network decentralization. This element is vital for project success.