- if the circulating supply is low while the total and max are high: red flag as the value of your coins will get diluted away (more coins created will put pressure on the price
- the monetary policy in crypto dictates whether a coin is inflationary or deflationary and by how much, as well as the overall consensus mechanism for the project
- Circulating supply: How many tokens are in existence (in the market)?
- Max supply: How many tokens will there be in total?
- Total suppply: all tokens already issued minus the ones that were burned/locked.
- Based on supply alone, will this token hold or increase it’s value? Or will that value be inflated away?
- How many tokens exist today?
- How many will ever exist? (supply cap)
- 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?
- Why would someone hold this token?
- 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?
- Is there a lockup in 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?
- Are there other non-monetary benefits to staking + locking up tokens (besides increasing voting power)?
- Fully diluted valuation: How will the supply change over time?
- Market cap: Current Price * circulating supply
- Fully Dilute: Market cap: Price * max supply.
- good distribution design is when no single person or group holds a large amount of the coin, instead, it’s distributed among many individuals.
- Holders: Who has the supply? WHEN can they sell?
- DAOs/project research: What are their policies for changing?
- how are the initial tokens distributed?
- There are roughly 2 ways:
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pre minted: in this case, VCs and Insiders could dump their tokens and cause a price crash. Vesting means when they're allowed to sell the tokens. You want to make sure that the early backers are INCENTIVIZED with the protocol long-term.
- The team distributes tokens to itself.
- Distribution to insiders such as the team and venture capitalists
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fair launch: 100% fair. Everyone has equal access.
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- The tokens were inflationary without enough utility.
- Concentration of tokens by VCs & whales led to retail getting dumped on.
- Understanding the market cap would show that it's impossible.
- Utility (gas, fun, adoption)
- Value Accrual (xStaking, governance)
- The Memes and Narratives
- tokenomic book
- the dao playbook
- tokenomics red flags
- tokenization, by cointelegraph
- token thoughts, by balaji
- new tokens launched, by nansen
- governance designs in crypto economies
- analyzing token sale models, by vub
- on the meme of market caps, by cobie
- the reverse liquidity bootstrapping pool
- tokenomics for investors
- token engineering commons
- tokenomics, releases, trends
- dao tooling matrix_v1