Cenit is the best company for tokenomics design and modeling. With our software, we allow projects to simulate, improve and share with ease their tokenomics. Once a project has introduced the main aspects of their token economy, they obtain a dashboard like this one
Where the token buying and selling demand is tracked over thousands of scenarios in a way that it is easy to understand if an economy is going to grow organically or if it is badly designed.
In this post, we will show you how to use our gamefi tokenomics template to model your token economy and make sure that it works as planned. The template can be found here, and it can be forked and adjusted to reflect your own token economy.
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Developing an in-game economy is an intricate task. We need to find the proper balance between scarcity and making the game fun, all in an environment where your users are constantly evolving and trying to find exploits for your game. You need to simulate the in-game economy to make sure everything is right.
But what about the token economy linked to a web3 game? It is indeed another layer that we should count on, and both the token economy and the in-game economy should blend into a perfectly aligned system.
This template uses three main value propositions that usually involves a game:
There are some other options that do not apply for this specific template but that could be considered as well, such as lotteries or loot boxes.
The utilities, fee splitting and growth hypotheses for each of them should be readjusted in each value proposition. Keep in mind that each value proposition is treated independently from each other. So if a player spends 3 $/month on average, you should make the calculation to split it between the different value propositions.
For this economy, we set up token incentives that are distributed regularly to the players that reach certain milestones in the game, but these incentives could go to stakers or to any other actor which is not part of the PvE value proposition.
We have selected to distribute all the incentives as soon as they vest, although we could choose another pace, if required. These incentives will be simulated with the most conservative approach in mind which is to be sold as soon as obtained. This way we understand the pressure they put on the token economy, making it easy to understand how many rewards we should be giving and where our danger zone is.
We can create a new simulation with this template as the starting point by forking from it.
Next, input your general information in the editing view, with the corresponding supply and allocation as well as the value proposition.
If you do not have all the numbers already decided, do not worry, since this can be changed easily later. Indeed, the whole purpose of the simulation is to be able to tune them!
Add or adjust any value proposition that your game might have on the “Value propositions” section.
Keep in mind that your growth hypothesis will probably not be the same, or how you distribute the fees among your economy. In case of doubt, you can always watch the tutorial videos.
In this case, we have made use of the “Custom value Proposition '' feature for the PvP, since the ones that are available by default were not exactly what we were looking for.
Here we have a tournament, whose growth KPI will be determined by the total volume of USD played monthly. From that, we will take a percentage fee.
Lastly, we could configure any token rewards in the economy. Incentive reserves are part of the initial allocation, while emissions correspond to newly minted tokens, in case there was no specific max supply in the economy.
Keep in mind that the allocations can be subdivided into different sets in case we want to have more granularity on how they are allocated.