Tokenomics describes a series of tools and incentive mechanisms used to express a project’s preferences and goals in the highest resolution possible. These preferences and goals can be expressed on a temporal vector and be set to change over time at a project’s genesis, or be allowed to changed at any time via governance. New tokenomics mechanisms are being discovered all the time, and integrating them allows projects to express their preferences in an even higher resolution.
The rate or size of any of the following distribution methods relative to other distribution methods in the same project occurring at the same time will determine which users are being diluted or concentrated. For example, if a project has 10% APY staking emissions and 15% APY LP rewards, the stakers are being diluted relative to the LPs (ignoring impermanent loss). But a passive holder or a future-holder is being diluted relative to stakers and LPs.