Token economy design
Specialists in aligning economic interests of network and platform participants with tokenization.
To ensure that issued tokens have utility, attract and retain value, it is necessary to design a micro-economy around a token supply, so that there will be demand and supply for the token and economic incentives to hold or stake the token.
A token economy design is a comprehensive blueprint that sets out how to:
- Issue the new token
- Sell the new token
- Create demand for the token inside the product, service or protocol, and
- Incentivize behaviour for users to hold or stake tokens.
We work with startups to implement the blueprint recommendation inside their product, service or protocol, as part of the process of embedding an issued token and activating the token economy.
Once a token has been implemented into a product, service or protocol, we continue to monitor and review the health and performance of the token economy and produce reports that measure performance along key dimensions of token economy health over time. If the token economy is not functioning as desired, changes to the economy are suggested. The process of tweaking the token economy takes place over a number of months and depends on a number of factors, including level of market validation or adoption, token economy performance in practice vs design, complexity in implementation and exogenous factors influencing the functioning of the token economy.
Token economy design services offered:
Design and development
A detailed blueprint that describes the operation of the desired token economy including:
- Cryptographic tokenization methodology
- Token market management
- Token holder incentivization strategies
- Other details necessary for the effective functioning of the token economy
Implementation and maintenance
Following the conclusion of the token sale, these services are provided on an ongoing basis to ensure the proper functioning and success of the token economy:
- Assistance with implementing the token economy blueprint
- Performance monitoring in accordance with token economy key performance metrics
- Assistance with the design and implementation of modifications and updates to the token economy (E.g. increasing token supply; restructuring incentives, etc.)
- Other services necessary to ensure the proper functioning of the token economy in accordance with the objectives of the blueprint