The process
- Discovery
In this stage, we are delving deeper into the business model and its relationship to token characteristics. This is a critical stage in understanding the incentives and processes that will aid in the coordination of the protocol’s economic agents. - Research
With a better understanding of the business and token structure, we begin collecting data and analyzing various token systems. This phase serves as a foundation for subsequent simulations and design. The data and assumptions gathered will be used in Python and R programming language simulations. - Design and Simulate
In order to examine ecosystem dynamics, the next modeling step will involve the simulation of a token model with realistic numbers and well-defined methodologies. Typically, the finer aspects of economic design come to light at this point:- Distribution and Vesting Schedules
- Concrete numbers applied to mechanisms e.g. staking.
- More clear relations with economic agents.
- Continuous Support
Even if the token economy is stable and efficient, improvements may be necessary. When the project is completed, we will be able to extract data from the blockchain and make modifications based on the data.
Results
- Assurance for the founding team that the token economy doesn’t have any weak links and dangerous feedback loops.
- A robust token economy works as a marketing tool for further community and partnership growth.
- A catalyst for capital attraction.
