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

Unlocks and Supply shocks (MoM)

It's essential to carefully consider these factors when designing a tokenomics model for a cryptocurrency project. By carefully managing inflation, unlocks, and supply shocks, we help projects maintain the long-term value and stability of their tokens. We've analyzed inflation and unlocks events from hundreds of tokens in our database, allowing us to gain valuable insights into how supply shocks and other economic factors can impact token prices.

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.

Token Sale

We offer a comprehensive tokenomics design service for each round, tailored to meet the specific needs of the project vision. We also design a Utilization of Funds strategy that outlines how the raised funds will be used to achieve the project's goals. This strategy is crucial for creating transparency and trust between the project team and investors.

Soft Cap vs Hard Cap

At the start of a token sale, we help the project set this two important thresholds. The soft cap is the minimum amount of funds required for the project to be deemed a success and to proceed with its plans. If the soft cap is not reached, all funds are returned to investors.The hard cap, on the other hand, is the maximum amount of funds that the project aims to raise.