Tokenomics or token economy is an economic ecosystem supported by underlying blockchain tokens. Tokens are digital objects that represent value and are governed (issuance, transactions and balance verification) by the blockchain protocol.
Tez is a digital token linked to Tezos. Its ticker is XTZ.
Token standards: Any Tezos user can create a custom token of his own. To facilitate tokenization Tezos employs several token standards:
- FA 1.2 is the more generic one, supporting only fungible tokens (akin to Ethereum's ERC-20).
- FA 2 is an advanced standard that also supports NFTs (similar to ERC-721 standard) and allows for multiple tokens to be managed on the same contract (like ERC-1155)
- NFT is a non-fungible token (FA2 standard). Each NFT is absolutely unique. This standard is most suited for miniting digital collectible items, art objects, tickets, etc.