Tokenomics Methodology

Based on our extensive experience and expertise in working with over 80 tokenized ventures at similar stages, we have developed an all-inclusive blueprint for constructing sustainable tokenomics that will best serve your venture.

Our approach to token economics is tailored to support and align with all of your objectives and milestones. It surpasses the traditional method of spreadsheets, as we create actual models of your ecosystem that can be simulated to validate and provide expected outcomes in various scenarios.

We understand that every client is unique, and that one size does not fit all. Therefore, our team conducts thorough research and analysis to create a robust token and incentive model focused on the economy design, allocation, and distribution that matches your objectives precisely. Our data-driven insights and successful track record guarantee optimal outcomes.

Case Analysis

At the beginning of our collaboration, we have the opportunity to engage in productive discussions that will allow us to truly understand your objectives and the unique ecosystem in which your business operates. These discussions provide us with the foundation we need to create a custom tokenomics setup that will meet your specific demands. Our team is dedicated to closely analyzing your objectives and milestones to ensure the development of a tailored and highly effective tokenomics strategy. This process is essential to ensuring that every step we take is aligned with your vision and goals. By working collaboratively and with an unwavering commitment to delivering excellence, we are confident that we will successfully build and launch the tokenized venture that you aspire to create.

Your Objectives

We'll align the tokenomics decisions with your goals for the coming years. Let us know your milestones, and we'll provide solutions. Our experience and expertise give us the edge to deliver results that align your expectations.

Ecosystem & token utility

Knowing what your ecosystem looks like and what the token utility is allows us to make a model of the project's ecosystem and assess its sustainability. In addition, this information helps evaluate the token distribution and vesting schedule.

Incentive Model

Understanding how your token captures and redistributes value is vital for its growth. Gaining insight into the token economy helps us to make strategic decisions that benefit your business and stakeholders.

Benchmarking

We perform benchmarks to thoroughly analyze similar ventures and their tokenomics. We accomplish this by utilizing our proprietary database as well as external research to evaluate similar projects. By combining our extensive industry knowledge with comprehensive desk research & data analysis, we are able to evaluate key factors such as the project’s following dynamics.

This allows us to identify best practices and provide tailored recommendations to optimize your tokenomics setup and drive success.

Collaborate with industry experts and leverage benchmarked data to establish robust and sustainable tokenomics that instill confidence in your investors and community. With our assistance, you can create a strategic approach to tokenomics that aligns with your business objectives and delivers long-term value.

If you're in it for the long term, get expert help

Token Strategy

Evaluating token strategy forms an integral part of our methodology, where we delve into the justification for a project’s token use, pinpointing which aspects of the ecosystem should incorporate the token to guarantee its defined purpose and utility, thereby fostering its value and widespread adoption. Furthermore, our analysis extends to selecting the appropriate blockchain platform for the token, guided by the project’s unique needs. We meticulously evaluate critical factors such as scalability, transaction speed, security, decentralization, and community support, with the aim of identifying the most fitting blockchain. This thorough alignment of the project’s requirements with the distinct features of various blockchains facilitates the determination of the ideal foundation for your token, ensuring its seamless integration within the larger ecosystem and laying a robust groundwork for the project’s success.

Ecosystem Design

After thoroughly analyzing the case and conducting benchmarking, our team will create a visual representation of the ecosystem that includes all relevant stakeholders, their relationships, and activities. This mapping exercise will provide valuable insights into the ecosystem’s functioning and help us develop effective strategies to meet our goals.

Stakeholder Map

In our methodology, ecosystem design plays a critical role. We thoroughly evaluate the token utility and stakeholders within the ecosystem to assess its sustainability. By carefully analyzing the interactions, incentives, and value flows, we ensure that the ecosystem is designed to foster long-term viability and growth.

Ecosystem Activities

Through our evaluation, we consider factors such as the alignment of token utility with user needs, the balance of incentives to encourage active participation, and the creation of mutually beneficial relationships among stakeholders. This approach enables us to identify potential bottlenecks or inefficiencies within the ecosystem and propose strategic solutions to enhance its sustainability.

Incentives & Utility

Utilizing what we know about the ecosystem design, we create a concise value matrix and incentive model. These offer a more visual and comprehensive representation of the value mechanics and incentives within your token ecosystem. They also help form a useful basis for later modeling.

Key Drivers

The value matrix identifies key drivers such as token utility, scarcity, network effects, and user adoption. By mapping out these factors, we gain insights into their interactions and impact on the ecosystem's overall value proposition.

Incentive Mechanisms

The incentive model focuses on mapping the mechanisms encouraging desired user behaviors. It outlines specific actions incentivized within the ecosystem, along with corresponding rewards such as additional tokens, exclusive features, or voting power. These incentives help align user behaviors with project goals and foster active engagement.

Rely on our expertise and data-driven approach

By relying on our expertise and data-driven insights, you can make informed decisions that drive growth and profitability in the dynamic and rapidly evolving world of DeFi, GameFi, SoFi, and Web3.

Token Economics

We carefully evaluate the stakeholders involved in the ecosystem and assess their contributions, roles, and long-term involvement. This evaluation allows us to recommend a fair and balanced distribution of tokens that aligns with the project’s goals and incentivizes active participation.

The distribution of the tokens and the vesting schedule of tokens are both highly important. A good token distribution and vesting schedule can help show investors and possible users that you have a good plan for creating a sustainable ecosystem. To assess or create these, we use both our benchmarks, expertise and logical reasoning.

The vesting schedule determines when and how tokens become available to stakeholders. We take into account factors such as project milestones, development stages, and community engagement to design a vesting schedule that ensures a sustainable and responsible release of tokens.

Token Simulation

In our simulation process, we utilize Python and specialized simulation software to create accurate and dynamic simulations of your token ecosystem. These tools enable us to analyze supply and demand dynamics, map interactions, and assess system behavior. Our simulations provide valuable insights for data-driven recommendations, optimizing parameters, and maximizing project success.

Below you can see an example token economy simulation. We use special software to model complex interactions between systems with many moving parts. Those kinds of simulations are perfect for modelling more complex systems, such as L1 consensus stake rates and rewards, complex DeFi product interactions or Play-and-Earn tokenomics setups.

The ecosystem and token economy showcased here is intentionally simplified, but it encompasses various essential elements:

Token allocations and vesting
Generated revenue by company
Token burning
A fully functional Automated Market Maker (AMM) like Uniswap
Liquidity provision to the AMM
User agents with actions such as selling, holding, or adding liquidity

Furthermore, our more complex token models can incorporate:

Diverse agents with multiple sides and roles
Agent behavior influenced by rewards and market conditions
Staking mechanisms
Unique allocations and various vesting setups
Token inflation considerations.

Evaluation

Analyzing the simulation results allows us to gain valuable insights into the performance and sustainability of your token ecosystem. We closely examine several key aspects to evaluate the simulation outcomes. We evaluate the ecosystem’s sustainability. This involves analyzing factors such as token supply dynamics, token utility, user adoption, and engagement. We examine whether the ecosystem achieves a healthy balance between token demand and supply, ensuring the long-term viability and growth of the project. By closely examining these factors in the simulation analysis, we gain actionable insights into the performance, market dynamics, sustainability, and token allocation of your ecosystem. These insights allow us to make data-driven recommendations and fine-tune your tokenomics setup to optimize project success.

Results & Benefits

Our approach offers several benefits that drive the success of your tokenomics setup. With our expertise in tokenomics, economics, and blockchain, we provide tailored solutions that align with your project’s unique goals and target audience. Through comprehensive analysis, including research, benchmarking, and simulations, we ensure all crucial aspects of your token ecosystem are optimized. We can deliver and/or advise on: token strategy, ecosystem design, incentive models, value matrices, token distributions and vesting schedules. Additionally, our simulations can help you evaluate ecosystem sustainability and provide you with expected behaviours of stakeholders.

Our Expertise

Having worked hands-on with 90+ tokenized ventures at different stages, we have developed an all-inclusive blueprint for building sustainable tokenomics that will best serve your venture.

Our Methodology

Our structured approach also enables us to deliver precision in value engineering, simulations, and forecasting. We are confident in our ability to provide our clients with the information and tools they need.

Our data-driven approach

Data empowers you to make informed decisions. By optimizing value capture mechanisms and providing continuous support, we position your project for long-term growth and success.

Client Successes

Meet our founder

Vincent de Vos

Vincent is a seasoned professional in the Blockchain and Crypto industry since 2015 when the first blockchains started offering support for dApps (Smart Contracts). He’s currently active as non-executive advisor in several tokenized ventures and participates actively in multiple DAOs.

Over the past four years, Vincent has spearheaded the research & development of expertise in token economics and token engineering at Chainforce. Dedicated to empowering founders and venture capitalists with the tools and insights necessary to confidently design, build, and launch sustainable ventures within the token economy.

His aim is to accelerate the adoption of blockchain technology to shape a future that is not only more transparent and efficient but also fundamentally fairer for all.