🪙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

How To Design Tokenomics For Your Web 3.0 NFT Game — With ExamplesMedium

How To Design Tokenomics For Your Cryptocurrency: The Basics Of Creating Your TokenHow To Design Tokenomics For Your Cryptocurrency: The Basics Of Creating Your Token