Complete designing tokenomics course guide
Welcome to your complete course guide on how to design tokenomics!
This will be a complete walk through, or tokenomics course if you will, of everything you need to know regarding designing and evaluating tokenomics.
Start learning today with a free email tokenomics course!
What you’ll learn:
- Why and when to use a token in crypto
- Why projects launch tokens
- Tokenomics supply and demand 101
- Understanding demand:
- Token utility
- Understanding supply:
- Token supply and inflation
- Public issuance
- Private issuance and vesting
The Core tokenomics design course syllabus
Tokenomics incorporates many, many, different domains. It’s a domain that tries to bridge technological systems, economic systems, human psychology and politics. Here are the domains you’ll need to know to design tokenomics well:
- Political science
- Game design & game theory
- Cryptography basics, smart contracts and consensus mechanisms
- Financial history
Here’s the comprehensive curriculum for the tokenomics course:
Why & when to use a token
Tokens are the superpower of web3, but they’re a double edged sword. They shouldn’t be used for every project. Knowing how to evaluate whether to use a token in a project or not is the first step to understanding tokenomics.
Tokenomics 101: Supply & demand
Understanding the overall picture of tokenomics fundamentals is where this tokenomics course starts.
Analyzing token demand & business analysis fundamentals
What drives demand for a token? We’ll learn how to analyze the utility a token brings and value it drives for the web3 economy. Analyzing demand is a mix of understanding the token economy, business fundamentals, financial prospects for the token and the narrative in the market.
Supply & Token issuance
Supply is as important as demand. It’s made up of the Public and private distribution of tokens, how liquidity is setup. Most importantly it’s a factor of knowing how to look at the token issuance and vesting schedule.
Setting up token liquidity
How to setup a liquidity pool for your token. Determining how much TVL to lock up and incentives to give to liquidity providers. What to take into account and implications to consider.
Regulation applied to tokens
Regulation is becoming ever more present in the web3 sector. Structuring a token so as to avoid violating securities’ laws in different jurisdictions is part of what every tokenomics designer should consider.
Many tokens serve for protocol governance as well as protocol utility. This gives them a dual purpose that needs to be considered lest they contradict. There are many forms of token governance, such as ‘one token — one vote’, quadratic voting, one person — one vote, governance limiting. This is an area most tokenomics courses neglect to the detriment of their protocols.
Tokens serve as a coordination mechanism amongst different stake holders. The agency problem is a classic problem amongst different stakeholders. It plays its part in designing crypto economics systems as well.
Designing Tokenomics by Yosh Zlotogorski