📖Vocabulary

A

Airdrop – A distribution of tokens, often free, to multiple wallet addresses to promote a project or increase token distribution.

APR (Annual Percentage Rate) – The rate of return on an investment, without taking into account the compounding effect. Commonly used to describe staking or yield farming rewards.

APY (Annual Percentage Yield) – The rate of return on an investment, including the effects of compounding over time. APY is typically higher than APR because it accounts for interest earned on previously accrued rewards.

Available to Claim – The amount of tokens that have vested and are ready to be claimed by the token stakeholders.

B

Burn Rate – The rate at which tokens are intentionally destroyed or "burned" to reduce the total supply, often used as a deflationary measure to increase token value.

C

Circulating Supply – The total number of tokens currently available and actively traded in the market. This excludes tokens that are locked or reserved.

Cliff Amount – The portion of tokens that are unlocked and available immediately after the cliff period ends.

Cliff Date – The specific date and time when tokens and TONs will be unlocked and available for distribution after the cliff period.

D

DEX (Decentralized Exchange) – A platform that allows peer-to-peer trading of tokens without the need for a central authority or intermediary.

Farming Pool – A pool where users can stake or lock tokens to earn rewards, typically in the form of additional tokens. This is a common mechanism in DeFi for incentivizing participation.

FDV (Fully Diluted Valuation) – Calculated by multiplying the token price by the total supply. This metric estimates the potential market cap when all tokens are in circulation.

G

Gas Fee – A fee paid to process a transaction on a blockchain. The amount depends on network activity and the complexity of the transaction.

Gas Limit – The maximum amount of gas a user is willing to spend on a blockchain transaction. Setting the gas limit too low can result in a failed transaction.

Governance Token – A token that gives holders the right to vote on decisions regarding the project’s development, including proposals for protocol changes or funding allocations.

H

HODL – A term originating from a misspelling of "hold" that is now commonly used in the crypto community to refer to holding onto tokens rather than selling them, particularly during volatile markets.

Holders – The total number of unique wallet addresses holding the token.

I

Impermanent Loss – A temporary loss that liquidity providers experience when the price of tokens in a liquidity pool changes compared to the price when they were deposited. This occurs due to price fluctuations of the paired assets in the pool.

L

Liquidity – The amount of tokens and TONs available in a pool for trading, ensuring smooth transactions and stable prices.

Liquidity Pool (LP) – A pool of tokens locked in a smart contract on a decentralized exchange (DEX). It provides liquidity for trading pairs, enabling users to swap tokens efficiently.

M

Market Cap – Calculated by multiplying the number of tokens currently in circulation by the current market price of a single token. This gives an idea of the token’s overall value at present.

Meme Coins – A type of cryptocurrency that often gains popularity through social media, internet culture, and community-driven excitement. Often inspired by jokes or memes, they can experience extreme price volatility. These tokens are not securities and lack investment contract characteristics, serving as assets for recreational purposes, with their value tied to community engagement.

Mintable – A parameter indicating whether the token creator can mint more tokens after the initial creation. A "true" value can be risky as it allows further token creation. A non-mintable token is considered more secure.

S

Slippage – The difference between the expected price of a trade and the price at which the trade is actually executed. This usually occurs in volatile markets or when there is low liquidity.

Smart Contract – A self-executing contract with the terms of the agreement directly written into code. Smart contracts automatically execute transactions once the specified conditions are met.

Staking – The process of locking tokens in a blockchain network to help validate transactions. Stakers are usually rewarded with more tokens in exchange for their participation.

T

Token Burn – The process of permanently removing tokens from circulation by sending them to an unrecoverable address. This can help increase scarcity and support token price growth.

Tokenomics – A combination of "token" and "economics," referring to the economic model and structure of a token, including supply, distribution, incentives, and utility.

Tokens for Pre-sale – Tokens offered at an early stage before public listing, usually at a discounted rate, allowing early investors to buy in and projects to raise initial funds.

Total Claimed – The total number of tokens that have already been claimed by the token stakeholders.

Total Supply – The total number of tokens that will ever be created. No more tokens can be minted.

V

Vesting Amount – The total number of tokens that are subject to a vesting schedule. These tokens are gradually released over time.

Vesting End – The date when 100% of the vested tokens will be fully unlocked and available for claiming by the stakeholders.

Vesting Start – The date when the gradual release (vesting) of tokens begins.

W

Whitelist – A list of pre-approved wallet addresses that are allowed to participate in a token sale or airdrop. Projects often use whitelists to control participation and prevent bots.

Y

Yield Farming – A process where users provide liquidity to a DeFi protocol in exchange for rewards, often in the form of additional tokens.