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Tokenomics. For advanced. Part II. From IDO to release
Most often, when another excitement comes, projects come to me with a request to “write tokenomics” … for 1.5-2 days! In their understanding, tokensomics are:
- Stages of collecting funds: F&F, Seed, Private, Pre -ido, IDO/IEO/etc.;
- The distribution of tokens between the team, Edvysers, primary and secondary indemnities, liquidity bullets, etc.P.;
- Separation of the received funds (liquidity) and/or tokens for marketing, development, etc.D.
But, of course, this is nonsense and frank, and therefore each hype (I remember the 3rd, small ones-more than a dozen) are born a lot of “tokenomics teams”, which then lie to the bottom somewhere in Bruges (Dubai/Moscow/ETC.), and the project at this very day remains until the end of the time.
And yet, since there is a myth – let’s try to illuminate its main aspects, and then expand the horizons and move further?
Zero point that should be voiced: There is no business plan at all. There is a bakery business plan, the site of the online store of cosmetics, a car factory, etc.P. So with tokensomics: There are no tokenomics at all. There is tokenomics:
- Specific product;
- Within a specific project;
- Which is created on a specific network (networks).
Therefore, any blind copying schemes is one step to collapse. Another.
The first item is that first of all you need to do a trivial operation: estimate niche, vector, segment, industry, market, sphere – where the project wants to enter:
- Total size (market/etc.);
- How much wants/can take a project in 5-10 years;
- Network parameters: number of users/accounts, transactions, dass, etc.:
- In statics;
- In dynamics;
Based on this, it will already be clear:
- How much tokens is enough for certain functions? Split from Polkadot or an increase in the emission from YFI are vivid examples that even in large products, not many care about the consequences: and so far there are enough next hype just to patch holes, but not everyone, firstly, secondly, the markets already Not the same as in 2013-2017. or even in 2018-2021.
- In which network is it better/interesting to launch a product/token? Now we have passed the competition and synthesis of EVM, but there is also non-EVM, L2, etc.D., So – the question will stand and is more and more strictly: all the more so that the bridges are not solved by all problems, but, moreover, give rise to a lot of new.
- What is the turnover and speed of token turnover? This question is very important. Extremely: therefore, we will consider it and more than once separately. For now – let’s go further: let’s try to touch it on the first layer.
There are two opposites of the solution:
They rarely intersect, but still – Their maximum intersection gives more advantages for the successful start of the project. Here are a few examples:
- For most tokens, the price of IDO is better to keep below a few cents: firstly, they are still great in the infusion of crowds and purely psychologically buy $ 100-1000 or even 1,000,000 and 0.001 tokens – different sensations; secondly, growing from 0 to 1 is always easier than from 1 to 10, so the range for growth should be. And here is full of exceptions;
- It is very important how many tokens the team has, initial “investors”, etc.D., Simply put: who can influence token and in what periods, as well as in what volume? For me, if the team has more than 10%-this is the trigger to check it more thoroughly, the editors should even fit into the range of 1%-5%: if not, you should also study why;
- You should always look at the process of token emissions so that: on the one hand, anyone could acquire it, on the other, his proposal would be constantly limited. How to achieve this? Read below.
There are other intersections. But let’s get back to the distribution before.
To whom and how much?
On the one hand: there is no perfect distribution. On the other hand, there is an empirician. And here are her conclusions (or, arguments, if you like):
More than 10% for the team-Moveton, although many people think not, but tokens can ultimately affect: Airdrops, liquidity pools, pharmacing and so on, so it is better to give an “extra” supply to the community. Especially – in the DaOS era.
Advisers, no matter how famous they are, hardly deserve a figure exceeding 1-3% (in extreme cases-5%) of the total issue. Take the average – 2% and 10 Edavizers: then 0 will have 0.2%. A little? How to see. Let’s an example. Let there be 10,000,000 tokens with an initial price of 1 cent ($ 0.01). We think:
- 20,000 tokens;
- or $ 200.
It is unlikely that Vitalik Buterin wants to speak with you more than a couple of minutes for that kind of money. Joke. But there are three secrets in this formula:
- Firstly, the project attracts $ 100,000 in such a model, which is usually 1%, even if 3-5%, but not 100%for the start;
- Secondly, the entry point of Edvyser is usually a SEED round or private, which means that the price is lower than the public in 2-3, or even 5-10 times (although the median difference between the closed and public round is 2-4 (optimum), 3-7 (discussed Max), 7-10 (an occasion of additional checks));
- Thirdly, it is not true to evaluate the tokens in the USD during initial placement: first you need to evaluate the economy of the project, and only then try to cross it from the one outside. Do not believe? Then compare what 1000 ETH is in 2014 in the summer (at ICO at $ 0.3- $ 0.5 per unit) and in 2021 for $ 4200 more).
Therefore, in a model closer to practice, the Edizer will receive from $ 2000 to $ 20,000 already in a public round, it is likely to discount the purchase of other tokens to the IDO and a bright case if the project fired. Hence the simple rule: know how to bargain and do not take extra advisers. Moreover – advisers.
As for me, advisers should be from 3 to 10:
- One-by business unit;
- One – by technical;
- And one – about marketing and/or fundraise.
And already further – depends on the circumstances. Anyway NOT It is worth doing the following:
- Take all those who raise funds to the Edvisers (Fandraizer): such Edavisers are usually motivated and extremely until the flow of money goes, but then – they can easily drown the project;
- Take many kols (influensers), marketers, etc.D.: Yes, they create excessive excitement, but marketing is the lot of the command: only some parts of it can be delegated without losing a positive reputation;
- Take to editeZd not from the world Web 3.0 usually use: look at the failures of the ICO with eminent athletes, at Drimytims in HyP 2020-2022. – Already these examples will be enough.
As for the fundraise itself, it all depends on your negotiation skills, but the closure of the transaction is from 1% to 3% excellent, from 3% to 5%, good, from 5% to 7%, normal, from 7% to 10% – acceptable, but above – you obviously lost. Example: they attracted $ 1,000,000 for you and took $ 20,000 from this – excellent; $ 100,000 – think about how many days of the team you lost at a time.
As elsewhere, there may be exceptions. Plus to that – The quality of the funds raised is more important: only those investors who help with marketing, PR and general promotion contribute to partnerships and t.D., usually, Investors are. The rest are all kinds of speculators, who need a simple scheme:
- Entrance in the early stages in 3-5x, and preferably 10x+ from a public (for example, the cost of $ 0 on the public.1 for token, and on a private – $ 0.01);
- Output in as many tokens as possible on IDO hype;
- Learning (if possible) money from the project.
We entered $ 100,000, reached $ 110,000 to IDO, and then it is not so important what will happen to the project: we will also talk about these manipulations. As well as how to defend. In the meantime, let’s go further.
Armor and shell
The first universally recognized tool for the fight against t.n. Damperi (DUMP – from the English “fall”: a sharp drop in prices associated with a large sales of this asset) – Phased unlock/defrosting tokens.
Standard-from 1 to 3 years, but it may be more/less: there are 5-6 years on the market on the market. Classic (for me) examples – ICO from Polkadot and/or Cosmos. Polka, besides, after defrosting, also took place split – also an interesting mechanics of fogging of speculative sentiments.
The best solution in the market 2021-2022. I think SAFT NFT from DAO Envelop: everything is transparent, understandable and most importantly – controlled by the parties.
Now there are no clear rules on the market, but here is an incomplete list of mine:
- The team should go out later than the rest (later it – except that “family and friends”, if round f&F&F was);
- Edavisers should be equated in this with the team;
- The private round comes in a little later – it comes out a little earlier / faster (or at once and faster, and earlier);
- If there is a fund for pools, projects, etc.D., then defrosting should occur in accordance with two road maps: a) a business card; b) technical (MVP, alpha, beta, release);
- Marketing should also be associated with the indicated two RoadMeps and should not definitely be unlocked immediately: as a rule, the project has a loud IDO, where you can “pour”, for example, 25% of tokens (for KOLS and other partners), then-goes The stage of product development and if marketing will too much To ahead of it, as practice shows, nothing good will come out;
- Development, in most cases, is not fed tokens, so it is best to single out the Nth number of key employees here and provide them with a conditional “option” AKA bonus, so that the motivation of quality development has become even more obvious.
Unfortunately, to my and happiness many: projects relate to tokens not as the main value, but as an additional buns. And usually all the troubles lie in this: there are too many speculations-there are too few real products with real utility tokens.
An example-cutting from Dao Veezy token to defrost:
In this case, you should know such terms as:
- Vesting (Vesting): if VC “Vestnik is the dependence of a certain percentage of its shares (0–100%) depending on the time worked over the project”, then in ICO/IDO/ETC. Typically, we are talking about a phased defrosting of tokens (teams/Edavizers/early investors/other participants), which may be linear or not. And yes, we will talk about this too; (cliff): Again, in VC – “Snowing period, only after which the first shares are accrued. That is, if you leave the company until the end of Cliff Period, you will not get anything “. With regard to IDO, this is the period of unlocking and subsequent dates/conditions. About this too – later;
- Blocking/unlocking (Lock/Unlock) according to other conditions: the benefit of experience is many and different ..
- The period of frost – from 1 to 3 years or more: the standard for the industry is already quite;
- Stages of defrosting – for example, monthly, but for each group – in its months;
- The team is the first breakdown to the token to the alpha, and it is better-the release of the product cannot be done at all, and even more beautiful-to give 6-12 months for the test of the resulting product: so-more honestly;
- Edavisers are inextricable with the team in this vector;
- Marketing and development – by crossing road maps;
- Pulas ..
But with bullets it is more complicated. Firstly, it all depends on where you are directing the funds: on CEXS, DEXS/Defi, lanchpads? Secondly, each listing method has its disadvantages (see. below) and they determine the work with both tokens and liquidity. Thirdly, tokens are far from everything in this case ..
Briefly about the minuses:
- Accommodation on centralized exchanges is fraught with speculations: no matter how much the tokens tested, but it always turned out that they are ready to sell them on Cexs-ah, but you can bring out within the framework of the created liquidity, so it is so easy to drown any altcoin/tokens in the falling market: painted In this case, they serve as an anchor, not a sail or parachute;
- Placement on DEXS – immediately pool of attacks:
- A course eaten during the exposition of a liquidity pool: for this, special bots (“snipers”) are created for this and you, say, set a token for $ 1, and the bot immediately sells it for $ 10. There are several methods of struggle, but obvious: 1) the creation of a proxy-subtract contract (I do not recommend); 2) adding minimum liquidity after the launch of IDO somewhere on the lanchpad; 3) Combining the mechanic IDO+Airdrop and 4) others: there will be time – we will discuss;
- Liquidity can simply pump out: therefore, you can – 1) use its “freeze” (example); 2) make pairs with min liquidity and approach “Whoever wants to add”; 3) try to create pools outside the main tools of Defi (I do not recommend), etc.D.
- There are other problems, including gas fees, for example (yes, we all remember about POS ETH2, but the facts are stubborn): but for now, let us stop.
Traffic is generally the second, after liquidity, the cornerstone of all Web 3.0 startups. On hype help: 1) shilling (I do not recommend); 2) Ama sessions with influents; 3) Work with Reddit, LinkedIn, Telegram, Discord, Twitter; 4) content marketing: interviews, press releases and more. Only word of mouth works on Anti-Hip. Everything. However, millionth infusions like Solana also help.
But back to our rams, or rather, speculators: how else can you protect yourself from unscrupulous “investors”?
First of all, 4K-analysis, but inverted, that is, applied to the fund: experience (at least 1 crypto-winter fund should be experienced); composition of the founders; The main thing is represented by the transmitted liquidity of communication/person/names. Who will you introduce you to? What the audience will lead? Are you ready to work with her.
Next: the history of transactions on Crunchbase or similar resources. Why did you suddenly become interesting? In hype 2020-2021. The stream of pseudo-funded was large and even robbery attacks on the phantors occurred (and this is despite Covid).
After: Trade in rounds. Seed should let in the most important, significant, iconic investors. And negotiate with them about maximum blocking. Ideally – forever, but this is achieved only with a number of funds and that – very conditionally. And, as for me, SEED should always be less than privat – at least like this: Seed-Rund .
Of course, signed by SAFT and NDA, if necessary. But the main thing is how you will build not just a system of unlocks, but also connect it with a roadmap. Let’s talk a little and about that.