There is still much uncertainty surrounding tokenomics. A weak or sometimes nonexistent regulatory system mixed up and unclear terminology, not to mention complex calculations and parameters.
As a token creator, the tokenomics process can easily become overwhelming. You must be prepared for the unexpected and have a ready answer for all possible questions from your users. There are so many things to think about that it may be hard to decide where to start. To make this process a little easier, we have prepared a sort of a cheat-sheet for you.
Common tokenomics problems
One of the main parameters defining the value of a token is its utility. The obvious questions for a token’s utility usually involve the business/marketing side of the project, but the technical aspects of it are equally if not more important for the success. Here are 3 main technical aspects to consider for a tokenomics project.
1. Blockchain selection
There are many points to consider when choosing a blockchain. There are several layer 1 blockchains each with thousands of forks and smart contracts built on them and every one of them offers different advantages. Let’s take the Ethereum blockchain for instance. Its fork BNB Chain offers lower transaction fees and faster block times compared to the Ethereum main net but is less decentralized. Ethereum Layer 2 solution Polygon aims to enhance scalability, improve transaction speeds, and lower costs. But staying on the main Ethereum blockchain also has its perks, including compatibility, interoperability, trust, and security.
2. The component puzzle
There are many possible components and many possible parameters to include in a tokenomics model and even more possible combinations of them. It is important to think through your user experience process with a detailed description of what is happening with the token each step of the way. This will help determine which elements to include and which are better left out.
Let’s take treasury for example, while it gives a certain security net by creating market liquidity it also suggests a centralized decision-making power, which is usually viewed as a disadvantage from the user's perspective.
3. Ecosystem integration
It is not enough that your project is well thought out on its own, it must be easy to use and therefore compatible with other platforms. Consider how your token will interact with other smart contracts, dApps, wallets, or other platforms including traditional finance and DeFi. Plan for potential integrations ahead of time by taking care of the needed compatibility for external systems and APIs.
Tokenomics in the making
These problems touch mainly the tech side of tokenomics, but many more elements must be factored into the tokenomics project. After all, it is a business in the making, and the social variables can’t be eliminated.
At SUPER HOW? we have a division of experienced professionals, ready to help with the overwhelming processes of tokenomics modeling every step of the way
SUPER HOW? input
Our team of experienced researchers can help you understand what your project is missing by providing a tokenomics system audit in the early stages of a project. An additional set of experienced eyes will help highlight and fill the blank spots in your tokenomics.
Our business analysts can help to simulate the price fluctuations and keep track of the response parameters. The provided simulation is adjusted to your project’s individual needs and can be used to determine the conjunctions as well as anticipate different outcomes depending on the market behavior.
Our team of data analysts is prepared to monitor and make necessary adjustments while providing real data-based insights into the tokenomics model. A good start is half of the work, but the project doesn’t end here. We are ready to provide expert insight along the way of your project and help deal with unanticipated issues.
Our developers are ready to advise you on the technical aspects of blockchain-related problems mentioned previously. We will help you make the right decision on blockchain selection, ecosystem, and its parameters.
Final thoughts
As you can see, there is a lot to consider when creating a tokenomics project. Nonetheless, the primary objective should always be to prioritize the user experience and ensure that your tokenomics project is easily accessible and comprehensible to its users.
Consider the user's journey at every stage and pay special attention to areas that you personally found confusing or inconvenient when using similar platforms. By putting yourself in the users' shoes and addressing their needs, you can create a more user-friendly and intuitive system that can be used as a roadmap for your developers.
It is easy to get overwhelmed by all the steps, possibilities, and alternatives, but SUPER HOW? can help throughout the process.