From bbca01429b13c089e7adcc9ae7df3671a773587f Mon Sep 17 00:00:00 2001 From: "dr. mia von steinkirch, phd" <1130416+mvonsteinkirch@users.noreply.github.com> Date: Tue, 7 Feb 2023 10:10:02 -0800 Subject: [PATCH] =?UTF-8?q?=F0=9F=91=BE=20MEV=20extraction=20can=20be=20a?= =?UTF-8?q?=20force=20of=20good=20in=20a=20non-predatory=20blockspace=20fr?= =?UTF-8?q?ee-market=20as=20an=20incentive=20for=20economic=20security.?= MIME-Version: 1.0 Content-Type: text/plain; charset=UTF-8 Content-Transfer-Encoding: 8bit --- tokenomics/README.md | 103 ------------------------------------------- 1 file changed, 103 deletions(-) delete mode 100644 tokenomics/README.md diff --git a/tokenomics/README.md b/tokenomics/README.md deleted file mode 100644 index e6c6c14..0000000 --- a/tokenomics/README.md +++ /dev/null @@ -1,103 +0,0 @@ -## 🍿 tokenomics for defi projects - - -### projects - -* [dydx tokenomics](https://docs.dydx.community/dydx-governance/start-here/dydx-allocations) -* [redacted cartel tokenomics](https://tokenomicsdao.substack.com/p/tokenomics-101-redacted-cartel-btrfly?utm_source=substack&utm_medium=email) -* [readacted university](https://redactedcartel.notion.site/redactedcartel/REDACTED-UNIVERSITY-0dba7e10e6fb476a8ee7d2cb70fcfb1f) - -
- - ---- - -### supply - -* **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. - -> 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. - -
- ---- - -### liquidity and valuation - -* **Fully diluted valuation:** How will the supply change over time? -* **Market cap**: Current Price * circulating supply -* **Fully Dilute:** Market cap: Price * max supply. - -
- ---- - -### distribution - -* **Holders**: Who has the supply? WHEN can they sell? -* **DAOs/project research**: What are their policies for changing? - -> A good distribution design is when no single person or group holds a large amount of the coin, instead, it’s distributed among many individuals. - -* how are the initial tokens distributed? There are roughly 2 ways: - -##### pre minted - -1. The team distributes tokens to itself. -2. Distribution to insiders such as the team and venture capitalists - -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. - -##### fair launch - -* 100% fair. Everyone has equal access. - -
-Screen Shot 2022-05-31 at 4 10 16 PM - - -
- ---- - -### concerns - - -* 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. - -
- ---- - -### what drives the demand - - -* Utility (gas, fun, adoption) -* Value Accrual (xStaking, governance) -* The Memes and Narratives - - -
- ---- - - -### resources and tools - -
- -* [cadCAD](http://cadcad.org/) -* [Token engineering commons](https://tecommons.org/) -* [Awesome cryptoeconomics](https://github.com/jpantunes/awesome-cryptoeconomics) -* [Utility token price simulator](https://github.com/melonattacker/utility-token-price-simulator) -* [TokenSPICE](https://github.com/tokenspice/tokenspice) -* [The Reverse Liquidity Bootstrapping Pool](https://tokenomicsdao.substack.com/p/the-reverse-liquidity-bootstrapping) - -