In this article, I explained the mechanics design required to craft a good tokenomics, and what a sound tokenomics structure is with practical examples
Game theory, utility, supply & demand and governance are just some of the knowledge covered by the interdisciplinary field of tokenomics. Tokenomics represent the latest innovations and experiments as they are at the forefront of web3. You will find below my curated list covering ideas put forward by pioneers in the space to the latest trends and innovations. For additional suggestions, please tweet me @emerick__mary
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.
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Token Economics Resources List
This is an open source list of valuable tokenomics resources.
Additions are very welcome. Please submit them here:
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Sheets,What Can You Find There,Who Should Read It
1) Token Economics Framework
This is a Template for General Research Topics from which specific or less general Areas of Interest can be Identified for further research. Please make edits if needed.General Topic of Study TokenomicsResources and Linkshttps://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&q=tokenomics&bt...
https://fstrauf.github.io/tokenomicsDAO/basic_resources/ Intro Content All you need to know about tokenomics https://medium.com/coinmonks/all-you-need-to-know-about-tokenomics-39642fe11d02 Supply Circulating, currently in the market and owned by people Max, ever possible Total, issued but not ...
Tokens can better incentivize startup employees than equity – TechCrunch
Token structuring and tokeneconomics are among of the most important considerations when designing a blockchain. When thinking about how best to distribute these tokens, founders often think about how the tokens will impact external stakeholders such as their investors, the community, and stakers (…
Justifying Token Equity Multiples using GDP Data by @ttunguz
When investing in a crypto startup that will issue a token, an investor considers two prices - the price of the equity and the price of the token. There’s a rule of thumb used today that states the token should be worth 3-5x the equity.
A founder informed me the rationale is that a share in a company has a lien on the future dividend streams, but a token has a lien on profit share of the GDP around an economy and that economies tend to be 3-5x larger.