Whether or not your application is an L1 chain, a dApp or some kind of middleware solution, your protocol is a business that brings value to your customers, much like a traditional business would. Understanding where your product creates value and who your customers are is critical to defining an effective and sustainable token mechanism and distribution model.
In these articles, we’ll go over the process of identifying your use cases, who your customers are, what value you create, and how to quantify this value in relation to your user base and your costs. Based on this work, you’ll be able to start developing a token mechanism based on data and clear use cases, as well as a distribution model that’s optimized for value capture.
Good token economics alone can’t make your product successful. Instead of diving into your product token-first, the primary goal of this value-first approach is to make sure you can find product market fit, and that you can define a pricing model for your service with longevity in mind.
1. Defining Your Protocol Value2. Designing a Pricing Model3. Does Your Project Even Need a Token?