How important is tokenomics design strategy?

In this Twitter space, Robin is joined by Dane Lund, Mohamed Fouda and Mete Gultekin to discuss DAO governance, tokenomics, economics and token design.

Read our notes below to learn more

About Mete

Founder of Vader Research which is a Web3 game economy and token design consultancy.

About Dane

Core contributor and DAO architect for the Web3 accelerator Alliance DAO.
He is an expert on all things DAO, DAO token governance and a delegate for some of the leading DAOs in the space.

About Mohamed

Core contributor at Alliance DAO.
Venture partner at Volt Capital.
Leads research and explores technical trends at Alliance with a focus on ZK-proofs, app chains and tokenomics.

About Robin

Co-founder of Liquify.
They are building Carta for crypto and helping companies manage their token vesting and lock-ups.

Thoughts on token designs

Over the last few years, token economics and designs in general have become sensible.
Some token designs have become really popular, have a product market fit and some are being copied and used by multiple projects because they have been proven to work.
Mohamed thinks we are still in an experimentation phase and still exploring use cases for Web3.

Different types of token value capture

Mete likes the value accrual utility.
Value accrual utility has different forms, one is where the token is used as a native token or currency to make payments and those tokens become accumulated in the protocol treasury.
When deciding on accrual value, it’s important to model out and decide on what percentage of value to accrue on a specific token.
Staking and governance are part of value accrual.
Integration of different types of token systems.
Having influence on upgrades is real power and that power translates to value.

Biggest mistakes on token designs

It’s important to be clear on utility.
It’s generally not useful if a governance token has nothing to govern.
Misallocation of the tokens and incentives once the token goes live.
Deciding the timing of the token launch and the magnitude of the token rewards distribution parameters should be dynamic.
Clarity and communication on the underlying team regarding assurance if they will or not raise any new tokens or NFTs in the future.
Balancing supply and demand.

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