## Our Team
Is composed of individuals with entrepreneurship, applied sciences, venture capital, mathematical, and visual design backgrounds. \
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We bring a multidisciplinary approach to tokenomics design and curation that enables us to develop effective solutions that not only consider a top notch token economics breakdown but also a visual perceived value layer that effectively communicates the tokenomics to investors and other shareholders.
## Our Vision
Our vision is to become the go-to firm for tokenomics design and curation for strategic projects within the crypto space.\
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Additionally, we aim to still be the preferred tokenomics audit service provider for our venture capitals partners who need a scan before investing in the world of crypto finance.
# What makes us different?
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# Our Services
We offer three main services to assist businesses in developing and optimizing their tokenomics strategies whether our clients already have a tokenomics document in place or need to start from scratch
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{% tab title="1. Tokenomics Design" %}
## [`Tokenomics Design`](
Our firm provides a comprehensive **four-layer tokenomics design** breakdown that includes a **`universal layer`** where we establish the fundamental metrics and monetary policies. This includes analyzing data to identify macro-specific factors that can impact the success of your token.\
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Followed by a **`bespoke layers`** tailored to the specific areas of improvement for your model, here our goal is to identify areas of improvement based on the initial inputs, and create a comprehensive breakdown of your tokenomics to ensure there are no issues or economical fallacies going on.\
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A **`technical layer`** powered by our database framework designed to identify potential issues before they arise, so you can rest assured that your tokenomics model is robust and technically sound, we conduct a thorough analysis to identify different technical issues that may impact the performance of your token. (MoM supply shocks, YoY inflation, token sale fair design, machinations economy design, etc)\
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Finally our cherry on top, a **`perceived value layer`** that showcases the attractive attributes for investors and communicates the information in a professional and easy-to-digest format. We understand that it is not enough to have the right numbers, you also need to present them properly this include a pitch ready presentation for investors and whitepaper integrations.
With our Four Layers Tokenomics Design service, you can be confident that your tokenomics strategy is tailored to your specific needs and goals, and that it will help drive the long-term success of your project.
| Analytics | Variables |
| --------------- | -------------------------------------- |
| Time consuming | 2 to 4 weeks (depending on complexity) |
| Weekly Meetings | Two or Three (1 hour each) |
Get more in-detail information about our Four Layers Token Economics Design → [here](/services/tokenomics-design)
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{% tab title="2. Tokenomics Consulting " %}
## [**`Tokenomics Consulting`**](| Analytics | Variables | | ---------------------------------------------------------- | ----------------- | | Time consuming | 14 days - 21 days | | YOY Inflation Analysis | Included | | Unlocks and Supply Analysis | Included | | Monetary Polices review | Included | | Incentives and Rewards data | Included | | Tokenomics from Competitors analysis | Included | | Demand Scenarios for Investors | Included | | Pitch Deck presentation (with the new improved tokenomics) | Included | | Whitepaper Add-ons | Included |
{% endtab %} {% tab title="3. Tokenomics Audit (VCs & Funds)" %} ## [`Token Audit`](https://blacktokenomics.com/tokenomics-audit/) {% hint style="danger" %} #### **Scan for Venture Capitals & Funds** {% endhint %} Our Scan for Venture Capitals & Funds service is designed to provide investment firms with a deep analysis of potential investment opportunities in the web 3 space. Using our proprietary AI data protocol, we conduct a thorough review of a prospect project's tokenomics, metrics, and monetary policies, as well as its potential for ROI and growth while comparing and running analysis with the main competitors of the niche. Our analysis includes a variety of factors, such as acceleration rates, supply shocks, and inflation YoY, among others, in order to provide investment firms with a comprehensive understanding of the potential risks and rewards of investing in a particular project. Additionally, we provide investment firms with a technical analysis of the prospect project's tokenomics and vesting schedule, identifying any areas of improvement that may impact the project's valuation and dilution. By conducting a rapid 24-hour scan, we are able to identify potential problems that should be addressed before the SAFT agreement is signed, protecting the best interests of our partners. Overall, our Scan for Venture Capitals & Funds service is designed to provide investment firms with the data and insights they need to make informed investment decisions in the web 3 space.
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\ # Official Links ## • [**`Website`**](https://blacktokenomics.com/)
Includes
‣ **Token Fundamentals** → Flow chart and definition.\ \ ‣ **Metrics** \ 1\) Supply \ 2\) Token System\ \ ‣ **Monetary Polices** \ a) Token Allocation \ b) Vesting release schedule
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## Monetary Polices
Monetary Polices are a critical component of tokenomics that deals with the supply and distribution of tokens. It is similar to the monetary policy of traditional economies, where the central bank controls the money supply to manage inflation and economic growth.\
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In the context of cryptocurrencies, the monetary policy determines how new tokens are created, emitted or unlocked and distributed among the different pools or shareholders. This process is called allocation distribution. \
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We also define the rate, accelerations and velocity at which new tokens are introduced into the system through a process called vesting schedule. \
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The goal of our monetary policies structures is to balance the demand and supply of tokens, maintain their value, and prevent hyperinflation or deflation (in some cases). We also aim to incentivize the right users to participate in the network and reward them for their contribution through various incentive mechanisms.
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{% tab title="Allocation Distribution" %}
## Allocation Distribution
A few key considerations we take when designing a token distribution strategy are:\
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**Alignment with business goals** \
We make sure that the token distribution strategy is align with the business goals and ensure that tokens are distributed in a way that supports the project's mission and vision. When distributing tokens for our target users, we will ask specific actions we need from them in return. For example, a decentralized lending platform may choose to distribute tokens to borrowers and lenders, while a gaming platform may choose to distribute tokens to game developers and players.\
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**Fair and equitable distribution**\
Token distribution should be fair and equitable, ensuring that tokens are distributed among different participants in a way that is proportional to their contributions or engagement with the network. Also Its very important that the different investor rounds (strategic, seed, private and public) have fair rules on the side of the price per token and vesting release rules.\
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**Attractive to the investors perspective**\
We make sure to design a token allocation strategy that is attractive for private investors and healthy to the eyes of the retail investors.
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{% tab title="Vesting Schedule" %}
## Vesting Schedule
Vesting is a process where a certain amount of a project’s overall token supply is set aside for a period of time and released after certain conditions are met. The process of holding, locking, and releasing these tokens is referred to as vesting.
The vesting schedule has some key elements:\
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**Token generation event (TGE)** \
Is the exact date when a project launches a token on an Exchange, centralized or decentralized. It is also the first date where investors and the other pools have the opportunity to get tokens unlocked.
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**Cliff Period** \
The cliff, meanwhile, is a feature that ensures that the investors or other pools have to wait a defined time to start receiving the tokens, known as the lockup time. This works as a durational lock placed on tokens ahead of the vesting schedule. It is primarily used for the team and foundation, seed and private sale investors pools.
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**Vesting Types** \
**Linear Vesting**: The distribution of tokens in equal parts within a certain period of time is known as linear vesting, this means that the amount of tokens and periods are proportional. For example, 10% of the vested tokens are released every 6 months.\
The time period can be days, weeks, months or even years. \
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**Twisted** or **Graded Vesting**\
The distribution of tokens is random within a variety of time periods. The time period varies from days, months, quarters or even years. In twisted vesting, you don’t see a linear pattern in distribution. For example: 25% of 600,000 $EXAMPLE tokens can be released monthly for the first 3 months and then 75% of $EXAMPLE tokens can be released followed by a 6 months cliff. The twisted pattern is usually seen in tier1 projects or layer 1 blockchains to maintain token pricing.\ {% endtab %} {% endtabs %} ## Metrics Establishing metrics is paramount when launching a new token, as they pave the way for the project's economic model. To create a successful token economics framework, there are several key metrics we need to consider. These include: ### Supply Metrics
Three Core Definitions
**Max supply** \ the maximum number of tokens that will ever exist. \ \ **Circulating supply**\ the number of tokens currently available for trading.The circulating supply is the best approximation of the number of assets that are circulating in the market and in the general public's hands. \ The Circulating Supply is a much better metric than Total Supply for determining the market capitalization. The method of using the Circulating Supply is analogous to the method of using public float to determine the market capitalization of companies in traditional finance. \ \ **Initial Supply**\ Initial supply is the amount of tokens released in the initial launch of a token. These tokens are released to encourage liquidity of the ecosystem and price discovery. There are multiple strategies for initial token launches that we recommend to execute depending on the nature and purpose of the protocol.**Psychological Effect**\ A larger token supply can create a perception of affordability and early adoption among potential buyers, which can lead to increased demand and adoption. \ **Liquidity**\ A larger token supply can also increase liquidity, making it easier for buyers and sellers to transact with each other. This can be especially important for tokens that are intended to be used for trading or as a medium of exchange.\ \ **Distribution**\ A larger token supply can allow for broader distribution, which can help to increase decentralization and reduce the risk of centralization or concentration of tokens in the hands of a few holders. \ On the other hand, some project founders may prefer a smaller token supply because it can create a perception of scarcity and exclusivity, which can potentially increase the token's value. Additionally, a smaller supply can also help to reduce the risk of inflation and ensure a more stable token price by reducing the supply shocks. {% endtab %} {% tab title="Small Token Supply" %} On the other hand, some project founders may prefer a smaller token supply because it can create: \ \ **Scarcity sensation**\ As mentioned earlier, a smaller token supply can create a perception of scarcity and exclusivity, which can potentially increase the token's value. **Lower Inflation Risk** \ A smaller token supply may have a lower risk of inflation since there are fewer tokens that can be created. This can help to maintain the token's purchasing power over time.
**Easier to understand** \ A smaller token supply can be easier for users to understand and calculate, as they don't have to deal with as many zeros when transacting or trading. {% endtab %} {% endtabs %}
Token System
**Single vs Dual token**\ A dual token system in crypto refers to a system that involves two different types of tokens used within a single blockchain network, protocol or even game economy. One of the tokens typically serves as a utility token, while the other is a security token.1. Better Governance: The use of a security token provides a means of voting and decision-making for stakeholders, enabling more effective governance of the network. 2. Reduced Regulatory Risks: Separating the utility and security tokens can help to mitigate regulatory risks, as the security token can be subject to securities regulations, while the utility token can remain unregulated. 3. Increased Access: A dual token system can provide greater access to different types of investors, as it allows for both accredited and non-accredited investors to participate in the network. 4. Incentivization: The use of a utility token can incentivize users to participate in the network and perform certain actions, such as staking or voting, by providing rewards in the form of the utility token. 5. Flexible Monetization: By separating the utility and security aspects of a project, a dual token system can offer more flexible monetization models. The utility token can be used to access the network's features and services, while the security token can provide a means of generating revenue through equity or profit-sharing arrangements. {% endtab %} {% tab title="Negative" %} While there are several benefits to a dual token system in crypto, some people argue that it can be negative for liquidity. The main argument against dual token systems is that they can create unnecessary complexity, which can make it harder for investors to understand and value the tokens. This complexity can lead to lower liquidity, as investors may be hesitant to invest in a system that is difficult to understand. Another reason why some people believe that dual token systems can be negative for liquidity is that they can lead to fragmentation in the market. With two different tokens, investors may need to trade both tokens to fully participate in the network, which can make it more difficult to buy and sell the tokens. This can lead to lower trading volumes and less liquidity overall.\ \ In addition to the potential negative impact on liquidity, there are some other arguments against dual token systems in crypto. These include: 1. Regulatory Uncertainty: The use of a dual token system can create regulatory uncertainty, as the two tokens may be subject to different regulations and legal frameworks. This can create additional compliance and legal challenges for project developers and investors. 2. Governance Challenges: Dual token systems can create governance challenges, as the two tokens may represent different types of stakeholders with different interests and priorities. This can make it harder to reach consensus and make decisions that are in the best interests of the network as a whole. 3. Value Discrepancies: Dual token systems can create discrepancies in the value of the two tokens, as they may represent different aspects of the network or project with different levels of demand and utility. This can create confusion and uncertainty for investors, and may lead to disputes or dissatisfaction with the token model. Overall, while dual token systems in crypto can offer a range of benefits, they also come with some potential drawbacks and challenges that need to be carefully considered by project developers and investors. {% endtab %} {% endtabs %} # 2. Bespoke Layer Here our goal is to identify specific areas of improvement based on the initial inputs, and create a comprehensive breakdown of your tokenomics to ensure there are no issues or economical issues.
Includes
* Intro * Tokenomics breakdown{% endhint %}
Once we have established the full tokenomics breakdown tailored to your inputs, we move on to the Technical Layer. \
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This layer involves a technical analysis framework to ensure that everything in your tokenomics model is configured correctly. We conduct a thorough analysis to identify different technical issues that may impact the performance of your token.
# 3. Technical Layer
Our technical analysis framework is designed to identify potential issues before they arise, so you can rest assured that your tokenomics model is robust and technically sound.
Includes
#### `Unlocks and Supply shocks (MoM)` #### `Token Release Schedule & Allocation (YoY)` #### `Inflation (cummulative vs YoY)` #### `Token Sale Breakdown` * Soft Cap vs Hard Cap * Investors Rounds design * Relative Price Discount adjustments * Utilization of Funds
## Token Release Schedule & Allocation (YoY)
## Inflation
Our experience and data-driven approach enable us to design tokenomics models that balance the demand and supply of tokens, preventing hyperinflation or deflation, and maintaining token value over the long-term.
The negative aspects associated with token inflation.
* **Dilution of Value**\ Inflation increases the total supply of tokens, which can lead to a decrease in the value of each individual token, as the market cap remains constant or grows at a slower rate. This dilution can discourage long-term holding of the token, as the purchasing power of the token could be eroded over time. * **Sell Pressure** \ To maintain their relative share of the network, participants such as investors or Advisors might be incentivized to sell newly minted tokens in the market. This can create constant sell pressure, driving the price of the token down and potentially destabilizing the network's economy. * **Inflationary Spirals**\ If token inflation is not managed properly, it can lead to an inflationary spiral, where the increased supply of tokens leads to a decrease in value, which in turn necessitates further increases in token issuance to maintain incentives for network participants. This feedback loop can ultimately result in a collapse of the token's value. * **Centralization Risks** \ In some cases, high inflation rates can lead to centralization, as investors or other shareholders receive up to 30% of the total supply allocation. This can undermine the decentralized nature of blockchain networks, concentrating power and control in the hands of a few entities. * **Speculative Behavior**\ High inflation rates can lead to speculative behavior and short-term trading, as market participants seek to maximize their returns in the face of decreasing token value. This can contribute to increased price volatility and instability in the network's economy.
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{% tab title="Investors Rounds" %}
### Investors Rounds design
We understand that different investor rounds have different needs and expectations. \
That's why we offer a comprehensive tokenomics design service for each round.
### Cumulative Token Funds Raised (per round)
{% endtab %} {% tab title="Relative Price Discount" %} ### Relative Price Discount The relative price discount is an important factor in determining the perceived fairness of a token sale and can influence investor sentiment towards a project. We focus on creating a fair and transparent token allocation structure that benefits all parties involved in some way. When designing the different rounds we make use of the vesting schedule release, lockup period, and TGE unlock to create a fair and equitable distribution and pricing structure.
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{% tab title="Utilization of Funds " %}
### Utilization of Funds
It's important to define a clear strategy for the utilization of funds in a crypto project because it ensures transparency, accountability, and helps build trust with investors.\
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Having a clear utilization of funds strategy can also help to attract more investors, as it demonstrates that the project has a well thought out plan for achieving its goals and creating value for its users.
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# 4. Perceived Value layer
We understand that it is not enough to have the right numbers, you also need to present them properly.
### **Tokenomics Technical Framework (Private Investors)**
This comprehensive document outlines the technical aspects of your token economics. It covers token distribution, token utility, token allocation, vesting release schedules, token sale mechanisms (round details, fundraising caps, relative discount analysis), and the overall economic model of the project. \
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We utilize complex models such as the Quantity Theory of Money price prediction and Monte Carlo simulations. *We understand that it's not just about having the right numbers; it's also crucial to present them effectively to investors.*
Both of this documents are interactive.