Ponzinomics
A token economic design that relies on new buyers paying earlier holders, similar to a Ponzi scheme, rather than on genuine revenue or utility. High yields funded solely by new token issuance are a common red flag for ponzinomics.
Mike Starr
Founder, CryptoWizardTools ยท M.S. Organizational Management
Last reviewed: August 2026
Related Terms
Layer 1
The base blockchain protocol (e.g., Bitcoin, Ethereum, Solana). Layer 1 solutions focus on improving the underlying blockchain itself.
Layer 2 Solution
A secondary protocol built on top of a Layer 1 blockchain to increase speed and reduce fees. Layer 2s process transactions off the main chain and then settle results back on-chain. Examples include Arbitrum, Optimism, and the Lightning Network.
Pump and Dump
A market manipulation scheme where the price of an asset is artificially inflated through misleading statements, then sold off at the peak for profit.
ATH
All-Time High. The highest price ever reached by a cryptocurrency or asset.
Treasury
Funds or assets held by a protocol, DAO, or project to support operations, development, and ecosystem growth. How a treasury is managed and spent is a key part of evaluating a project's sustainability and governance.