Good token economics alone can’t fix a broken product, but a poorly functioning token model can definitely bring a stop to an otherwise well designed product.
In this section you can learn more about token economic design for your dApp or layer 1 blockchain. The information provided is meant to help Web3 founders understand which questions to ask and what things to sort out before launching a token.
We believe our research on the best practices for Web3 founders should be freely accessible for everyone. However, please note that we are not lawyers. We just want to get this information out there so you have a starting point before seeking legal council.
Token Engineering
Token design can be a challenging task. From the initial assessment on what value you bring your customers to figuring out the exact distribution between all stakeholders: it can be a long and complicated road to mainnet.
We’ve done a careful analysis of the most common approaches in Cosmos and the broader Web3 space. We hope the following sections are useful for startups considering launching a token. If you are a participant on the Interchain Builders Program, we can review your token design and help you brainstorm the most suitable solutions for your protocol. If you’re building on Cosmos and are looking for support, you’re welcome to apply to the program here!
Chapters
Protocol Value & Pricing Models
Token Mechanism Design
Token Launch Mechanisms & Price Discovery
Token Allocations & Distribution
Burning Mechanisms
Team Allocations & Vesting
Airdrops