Resource Notes
Use, understand, and apply the model
Key takeaway
The core tokenomics model requires: Supply schedule (total supply, TGE circulating, monthly emission), Demand drivers (daily active users, tokens required per user, protocol fee buyback), and Sink mechanisms (monthly burn, staking lockup). The bear market test is most important: run with users at 40% of base, price at 30%, staking at 50%. If emission exceeds sink absorption → death spiral risk. Acceptable inflation: Year 1 <15%, Year 2-3 <10%, Year 4+ <5% or deflationary.
The Core Tokenomics Model
Input Parameters
Supply schedule:
- Total supply: _______ tokens
- TGE circulating supply: _______ tokens (% unlocked at launch)
- Monthly emission (Month 1–12): _______ tokens/month
- Monthly emission (Month 13–24): _______ tokens/month
- Monthly emission (Month 25–36): _______ tokens/month
Demand drivers:
- Estimated daily active users at 12 months: _______
- Tokens required per active user per month: _______ tokens
- Protocol fee buyback/burn: _______% of monthly revenue
Sink mechanisms:
- Monthly token burn (if any): _______ tokens
- Staking lockup (% of supply locked): _______%
- Average lock duration: _______ months
The Bear Market Test (Most Important)
- Active users at 40% of base case (bear market user reduction)
- Token price at 30% of base case (bear market price)
- Staking participation at 50% of base case (stakers exit when yields are low)