> For the complete documentation index, see [llms.txt](https://rhys-nemo.gitbook.io/tokenomics-bible/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://rhys-nemo.gitbook.io/tokenomics-bible/fundamentals/tokenomics-tips.md).

# Tokenomics tips

![](/files/Kp0fazR7KhZUhFviUSL4)

## ***1. Balance*** 

**Inflation** - Increase in price and fall in the purchasing value of an asset. 

#### ***Finding a balance between inflationary & deflationary activities is key***

###  ![](/files/qt0JIfI5PNM7dDq7Koxi)

### Inflationary Activities 

* Receiving Staking Rewards
* Airdrops
* Completing 'missions'

### Deflationary Activities

* Breeding
* Burning 

## ***2. Retain control***

Retain complete control over tokenomics supply & distribution. It does not matter what makes your community happy - if you need to change rewards to keep the economy healthy do it. <br>

Real world example - Axil Infinity had an inflationary issue. Their token price was dumping. Infinity took control over their economy, ignoring the FUD, reducing production of SLPs by 56%, which (among other factors) has led to a price increase of over 100% in the last few days.

## ***3. Create a*** separate ***governance token***

*Rewarding long term investors with more SPL tokens will only dilute the value of your token over time. Reward your community/long term investors with the ability to control the long term future of your project.*

*"Do not* mint new tokens and dilute the entire market"

Governance tokens should be separate - dual tokens are key.

* Create a governance token
* Cap supply&#x20;
* Only reward it to long term investors&#x20;

## ***4. Tokenize everything - Any in game resources should be their own token***

By turning in-game resources into crypto tokens that can trade, you can execute an advanced revenue generation strategy by owning all the liquidity for these resource tokens.

***Adding a liquidity pool behind resource tokens gives them real $$ value. Meaning - this will become a second revenue stream***

*Reference material*&#x20;

{% embed url="<https://medium.com/@manusiddharthjha/how-to-design-tokenomics-for-your-web-3-0-nft-game-with-examples-11a4a4c75cea>" %}

{% embed url="<https://maxya.mp/how-to-design-tokenomics-for-your-cryptocurrency-the-basics-of-creating-your-token>" %}