Tokenomics Optimization
Fine-tune the parameters of your protocol
Optimization Verticals
Demand-side tokenomics
Maximize the value your protocol generates for users and investors, ensuring it has a sustainable business model.
Supply-side optimization
Refine your token’s supply, allocation, and distribution to satisfy users, accomodate investors, and keep the protocol running smooth.
Change a token function
Adjust your token’s role in the protocol, either to reduce user friction or to capture more value while staying competitive.
Token Dynamics does what we
wish investors would do.
- Chris, Mainline Network
Other services
Tokenomics
Documentation
Build immutable protocols, hyperstructures which are scalable, permissionless, and censorship-resistant
Protocol Design
Use demand-side tokenomics to align the value of your token with the use of your protocol, making them useful, valuable, and secure
Economic security
Stress test your protocol to make sure it can handle any market conditions, ensuring incentive compatibility
FAQ
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.
The later you begin on tokenomics, the more money you’re leaving on the table, and the more likely your protocol is to fail.
Sorry to put it bluntly.
If you haven’t yet – or are not currently – thinking about tokenomics, you should start. Many founders underestimate the importance of tokenomics – and mentally minimize the impact of not designing good tokenomics from the start.
While we can provide more value the earlier we join a protocol, we also work with post-launch founders to course-correct and/or audit their protocol’s tokenomics, righting anything that could cause issues in the future.
