🪙Tokenomics tips
This document is a general overview of tokenomics & how to build a long term, sustainable token economy
1. Balance
Inflation - Increase in price and fall in the purchasing value of an asset.
Finding a balance between inflationary & deflationary activities is key
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.
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
Only reward it to long term investors
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
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