Refer to the “Education” section of Tokenomics DAO for the most up to date resources/articles on tokenomics.
* All You Need to Know About Tokenomics
* Great starting point outlining the basics of tokenomics and overview of the key variables: supply, burning, monetary policy, token distribution and earnings
* An introduction to token economics (tokenomics)
* Similar level of detail to link above, but with a bit more detail on token distribution
* Tokenomics 101: The Basics of Evaluating Cryptocurrencies
* Breakdown of tokenomics through the lens of supply + demand as opposed to the underlying drivers (e.g. burning, monetary policy, etc.), with a high-level evaluation of Convex Finance
* Economics Design Youtube
* Lisa JY Tan’s channel on tokenomics. She’s also authored Economics and Math of Token Engineering and DeFi : Fundamentals of Token Economics
Sample Protocol Tokenomics Overviews
* Each example covers initial tokenomics, governing principles and the associated trade offs made when designing incentives compared to other protocols.
* NEAR Protocol
* Harmony One (Initial Token Economic Model, Updated Tokenomics, Economic Model)
* Florian’s substack
* Ethereum Tokenomics 2021: Impact of Eth2, EIP 1559, and L2 Scaling Solutions on Demand/Supply
* Slightly outdated, but helpful illustration of how changes infrastructure changes impact supply/demand dynamics for ETH (or another crypto asset)
* https://ahitchhikers.substack.com/ - good deep dive substack on token engineering.
* Chapter 3: Cryptoeconomic Patterns - Value capture and distribution of protocols.
Tokenomics Evaluation Framework
Key Question: Based on supply alone, will this token hold or increase it’s value? Or will that value be inflated away?
* Total Supply
* How many tokens exist today?
* How many will ever exist? (eg is there a supply cap)
* Issuance rate
* Is the issuance rate fixed or variable?
* If variable, what are the factors that determine (and can influence) issuance rate?
* How was supply initially allocated among investors, community, core team, etc? Are there any group(s) with a significant holding that could drive material selling pressure upon vesting?
* What is the vesting schedule for the largest holders?
Key Question: Why would someone hold this token?
* Excluding any price appreciation, what is the return generated by simply holding the token? (eg staking)
* Is there an opportunity to earn additional return by yield farming?
* Are earnings/fees generated from the protocol distributed back to token holders?
* Does any “rebasing” take place as the protocol inflates?
* Rebasing works similar to a stock split, whereby holding and staking the token enables the holder to receive more, thereby offsetting any impact of inflation (eg % ownership remains constant)
* How active is their Discord/Twitter?
* Has an ecosystem fund been announced? Grants? Hackathons?
* How is the protocol actively working to drive additional community engagement?
* Do one-time + ongoing initiatives drive additional token demand?
* Is there a lockup program in place?
* If there is a lockup program in place, what is the incremental value of rewards and what are the requirements to earn those rewards?
* What % of total tokens outstanding are locked up?
* How much selling pressure is generated upon lockup expiration (and when)?
* Are there other non-monetary benefits to staking + locking up tokens? (eg increased voting power)
DAO Specific Content
* Incentive Design & Tooling for DAOs
* How to match a DAO's goals with the right incentive mechanisms to achieve them...