Gamefi Tokenomics Fee Calculator

When defining a Gamefi token economy, it is really hard to determine the fees that your utilities should capture to make good tokenomics. In the long term, the market cap of a token depends directly on the value it captures through its utilities.

In this post we present the tool with everything you need to calculate the value your token should capture from your project’s value proposition to reach your desired market cap.

About Cenit Finance

Cenit Finance is a tokenomics modeling and simulation platform that helps projects analyze and optimize their token economies. On our platform, you will understand how your token economy will evolve organically over time and anticipate critical moments before it's too late, or to take advantage.

Gamefi tokenomics calculator: The tool

In this link, we provide a calculator spreadsheet that ensures your token economy organically accrues value towards the token, with a healthy economy, even when considering partial token sales from project stakeholders.

How to use it

The concept is straightforward: to achieve a desired market cap and based on a given activity volume, we calculate the portion of your fees that should be allocated to your token utilities and the portion that you can use to pay your operative costs or as revenue for the company.

1. Go to the following link
2. Make a copy for yourself
3. Fill in the inputs, (volume expected and target market cap) and it will automatically calculate the amount of fees that are needed to make it posible, called “Minimum fee required” and also the amount of fees needed to be directed towards the token utilities.

We provide calculations for two types of economies: a gaming model where users pay on a monthly basis, and a marketplace model where a small fee is collected from transactions. These two models are independent. If your project combines both, make the calculations separately and divide the results amongst them.

For each token economy, we calculate the outcomes if you implement token utilities like burning, fee sharing with stakers, or fee sharing with the Treasury. These scenarios are absolute, meaning that for each case, 100% of the fee would go to one of those utilities.

Take into account

It is crucial to understand the impact on buying pressure that different utilities will have in our token economy, so as not to be misled by a single number. Specifically, there is a significant difference between the effects of staking and burning utilities.

Staking will generate a substantial amount of buying pressure as long as the protocol continues to grow. However, once the number of users stabilizes, interest in purchasing the token will wane, since the competitiveness of the staked tokens in terms of APY will diminish. Consequently, some participants may leave the staking program, which balances the net buying pressure.

For more resources on getting started with tokenomics, please visit:

• Tokenomics Design
• Tokenomics Modeling

Cenit simulation platform

The Cenit platform enables you to analyze and optimize your tokenomics with ease. By entering the information about your token economy, we simulate how agents participating in it will behave. Based on these simulations, we forecast how your token economy will evolve over time.

If you want to learn how to set up your simulations, try it yourself here, or find more information in this article https://www.cenit.finance/blog/tokenomics-modeling

Similation configuration used for the template

To reach the spreadsheet calculator results, we have created simulations them based on different versions (mostly amount of users at saturation) of the following token economy configuration:

• Vesting schedule: we have come up with a 'average vesting schedule' that results from analyzing dozens of gaming projects. This vesting schedule represents an average of how the most relevant projects allocate their tokens. Check the calculator for more details about this.
• Expected growth of the platform: for the purposes of spreadsheet the calculator all our simulations, we have considered a quadratic curve that saturates at month 36 with the corresponding number of users/volume traded. This applies to both user growth and traded volume growth

• Mechanics Assumptions: we assumed that the treasury's operational costs were zero and that all incentives given to users would only affect the simulation in terms of selling pressure. No extra incentives were provided for staking, therefore, they create no buying pressure from people seeking yield. Note, however, that stakers may receive fees from the protocol's main activity, which generates buying pressure, but not from the incentives.
• Stakeholders' Sales: stakeholders (those who receive token allocations) sell their tokens at a pace of 20% per year of their total token amount.
• Stakers' Expectations: stakers aim for an APY of 15%.

Results analysis

By reversing engineering the results from thousands of simulations conducted on the Cenit Platform for this allocation, we provide you with a straightforward calculator to estimate the volume/users needed to achieve a certain valuation.

How to customize your token economy

If you want to calculate for your specific case the optimal fees based on your specific token economy, here we present the steps required to generate your own analysis. The first step is to login in to our simulator platform.

Create an economy from a simple forms

This is the example on how to fill the token economy that have in the calculator, but of course, you will need to customize for your data.

1. Fill the general information

2. Fill the vesting schedule with the provided parameters. In the image below we have the parameters used for the ‘average vesting schedule’ in the calculator

3. Add the value propositions: inside each value proposition you will be able to define its expected growth and utilities.

4. Set Incentives: if there are token emissions or incentives, you can select it at this point. Incentives to stakers will generate some token buying pressure, since it generates some yield (and selling pressure because they will sell their rewards). Those given to users and providers however will only generate selling pressure.

5. Final hypotheses

Now you are ready to fully analyze the price trajectory of your token economy

Use the sliders to understand how each parameter affects the overall economy

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