Tokenomics: valuable tips by Jochem Gerritsen

Cut on article by Jochem Gerritsen, Co-Founder at Infloat

“..You can precisely engineer an ICO and that will get you to launch it properly, but then you still need to deliver a viable business model for the long term. The way you ensure this viable business model, is partly through applying tokenomics.

As a tokenized business, your token is an essential part of what you do. And to ensure that your token is used properly, you need to apply tokenomic principles.

Since we work a lot on tokenomics here at Infloat, we wrote down several important questions we try often answer for our clients:

1. Why did you create a (crypto)token?
2. What is the token supposed to do?
3. What behavior are you trying to incentivize or elicit from your users, partners, or other stakeholders with your token?
4. What behavior would you like to elicit from these groups that you are unable to do now?
5. Has this kind of behavior been elicited before in other projects using tokens or other incentive mechanisms?
6. Is your token price solely determined by the open market?
7. What effects will a lower token price have on your business?
8. What effects will a higher token price have on your business?
9. When is your token undervalued?
10. When is it overvalued?
11. What actions could a bad actor take to manipulate the price of your token?
12. What effects would such actions have on your token and your community?
13. Do you expect people to hold your token for a longer period of time?
14. In an ideal scenario, what is your token’s velocity?
15. Is your token a payment token? If so, what currency are your services or the services on your platform denominated in?
16. Would your token work without it being traded on a cryptocurrency exchange?
17. Would your platform still work when your token is replaced by Ether or another crypto- or non-cryptocurrency?
18. How do your users interact with your token?
19. How user friendly is this interaction with your token?
20. How can you get people to interact with your token, even those who know little about cryptocurrency?
21. When is your token — and your tokenized business — a success?

If you need help with your tokens or marketing — talk to Jochem Gerritsen, Co-Founder at Infloat directly via Experty.io app. Click here (experty.io webpage)