When optimizing tokenomics, we’re comparing the existing tokenomic mechanisms and features to the three Principles of Tokenomics – protocol utility, value capture, and economic security – in these, we’re optimizing the demand side of tokenomics.

Supply, allocation, and distribution also frequently need optimization – these three make up the supply-side of tokenomics.

Regardless of what stage your protocol is in, we’ll carefully review it from all angles to make recommendations or execute on plans that ensure it’s operating with best-practice standards. Our tokenomics optimization services focus on creating a strong foundation that results in the long-term success of your protocol.

Demand-side optimization involves maximizing token value based on its use in the protocol. It includes all Principles of Tokenomics: protocol utility, value capture, and economic security.

Each of these three are an optimization vector and consist of several components. For example, optimizing for protocol utility may involve adding an additional group of users to take on a certain role in your protocol (e.g. a keeper, oracle, etc.). Or it may involve finding an additional group of users to serve with your protocol, increasing its total addressable market.

On the supply-side, we are most frequently addressing questions of supply, allocation, and distribution. To optimize supply, we might be looking at token emission schedule, vesting, or supply-side tokenomic mechanisms which create token scarcity.

All of these are optimization vectors we consider in fine-tuning the perfect tokenomics for your protocol.