Tokenomics 104

When you start designing the tokenomics for a project, or when you’re looking at a project’s tokenomics, one important question is how the tokens are going to get into people’s hands. 

The way tokens are released into the wild can have a significant impact on the long term success of the project, so it’s not something you want to overlook. And if you’re a founder planning your launch, you need to make sure you have a good plan for releasing your token so people can purchase it, without destroying the health of the project. 

So whether you’re planning a token launch, or looking at the tokenomics of a project, here’s everything to think about around getting tokens in people’s hands. 

We’ll break it into three sections:

Considerations for Launching: Including how many tokens to initially put into circulation, liquidity requirements, incentives, timing, token pairs, and when to launch. 

Tactics for Launching: Including Initial Coin Offerings, Initial Dex Offerings, Liquidity Bootstrapping, Incentivized Liquidity, Liquidity Bonding, Usage Rewards, and Airdrops. 

Example Launches: Breaking down a few projects initial distribution strategies and what I think they did well. 

By the end, you should have everything you need to launch a token or evaluate a new token’s launch strategy.