Startup Funding Espresso – Designing Tokenomics

Designing Tokenomics

Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

In designing the tokenomics for your business there are four key areas to consider:

Role of the token — what role will the token play and what value will it bring.

The token could be a store of value, provide access, or facilitate governance.

Supply of the token — how many tokens will be minted, used, and burned.

The supply could be fixed or variable.

It could increase or decrease based on a community vote.

Utility of the token — how does the holder of the token use it.

What access does the token bring?

What value could it have?

What voting rights can the user hold?

Incentive of the token — what drives a user to obtain a token and use it?

Does it represent ownership in which case the token acts as a security?

Does it represent compensation in which case the user could exchange it for dollars and spend it.

A good token design can keep up with the demand of the network.

It can be repaired by votes from the community if there’s a fault in the design.

Consider these issues in your tokenomics design.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today.

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