Tokenomic Design

In short, tokenomics deals with token design and distribution. It aims to bring different groups together and enable a project’s platform to grow. The tokenomic design influences the success and failure of a blockchain project to a substantial degree.

Therefore, it is paramount, to have a viable concept and a well-defined economic model, which describe the main characteristics and mechanisms of the project. Any DeFi, NFT, Metaverse, GameFi, etc. platform must balance the interests of different groups and make decisions about factors that affect token demand and supply.

Services

We support you with different tools to answer various tokenomics questions:

Design of Tokenomic Systems.
We support you with types- and a number of different tokens. ▸

Token systems can have different characteristics. There exists, for example, dual-token or single-token economies. We characterize the pros and cons of the different token systems regarding your specific use cases. Thereby, we consider tokenomic and business-related factors. We help you to establish the optimal tokenomic system that supports your goals.


Design of Token Utilities.
Tokens can be designed in various ways and have different purposes. ▸

Getting a clear picture of the intended token type and its specific utility (e.g., governance, access, benefits, payments, payouts, etc.) is crucial for the token demand and might be important for the success of the project. To define the specific utility is therefore an essential step for every token project. We help you in deciding on the functions of the token, which can ensure the interconnection of the interests of all stakeholders.


Design of Token Flow.
We support you in the mapping of token flows between agents of the ecosystem. ▸

A mapping helps to get a better grasp of value chains and provide help in optimizing them. We support you in the determination of the main token flows, which ensure that the motivation of token holders and stakeholders are aligned.


Design of Token Supply.
Token supply can take many forms. We support projects to find the answers to the many questions they are faced. ▸

Relevant questions are for example: Should the token supply be fixed or grow over time? Should the token supply be deterministic or not? Should there be a mechanism to decrease the token supply and increase the token price? If so, what should this mechanism look like? We discuss the pros and cons of the different options to find a suitable token supply mechanism for you.


Design of Token Allocation. 
We support you in the allocation of the tokens to your different stakeholders. ▸

We do this based on three steps. To be successful, the token allocation should be in line with the overall goals and the story of the project. Thus, we first discuss the broad strategy with you before the background of your goals. Next, we present the various trade-offs and present today’s token allocation standards to support projects in finding an approximate solution. Finally, we provide decision-maker tools to make a specific decision. I.e., we provide you with simulations, to analyze the effects of different allocations, to be able to decide on the token allocation.


Design of Token Distribution. 
We support you in finding a suitable distribution schedule. ▸

We discuss different possibilities to distribute tokens over time (such as vesting and locking periods). Moreover, we discuss different trade-offs and provide decision-maker tools to facilitate the decision on the token distribution that suits your needs.

 
Further Topics. We can also advise you on topics such as general advice about the token launch, governance, NFT launch and other related topics.

 

Deliverables

We provide you the following deliverables:

     

Presentation Model Report

 

Selected Projects

Pact creates a decentralized exchange (DEX) for crypto assets on the Algorand Blockchain. The Center for Cryptoeconomics supports Pact to design its tokenomics and protocol incentives.

Meme Cake builds an NFT launchpad and trading platform built on the Solana- and ICP-Blockchain. The Center for Cryptoeconomics supports Meme Cake in designing its tokenomics.

Integrity is a platform provider that connects small businesses with service providers that help them grow.

Kabuni is a Metaverse platform that allows users to experience education through a VR headset. Other offered experiences include live sports events or interoperable games.

ChangeBlock aims to provide a platform that facilitates trading carbon offsets and allowances.

Cryptecon and CFX Technologies Ltd. are collaborating to create the world’s first fantasy prediction platform for cryptocurrencies.

Swiss Economics supports the Swiss initiative "DLT-for-Power".

Polkadex builds a decentralized, peer-to-peer exchange for cryptocurrencies. So far, these exchanges have either been centrally managed and therefore prone to attacks or slow. New blockchain technologies allow more targeted and faster data processing.