How to Build a Project’s Tokenomics! 👉 Tokenomics refers to the distribution of a project’s tokens: how many there are, where they go, and how they’ll be used. There are 3 main sections in tokenomics: 🟪 Token Utility This is the purpose of the token. The clearer its functions, the better for the project. It’s important to remember that a token can’t just be a tool for distributing profits — otherwise, it risks being classified as a security and falling under regulatory scrutiny. 🟪 Token Distribution It’s crucial to know where and how the tokens are allocated. Here are the main categories: 🟡 Various investment rounds (pre-seed, seed, private, public, strategic, KOL, etc.). 🟡 IDO — also known as the Public round. 🟡 Airdrops / community / marketing — tokens that will be given to the community. 🟡 Team — tokens for the project team. 🟡 Treasury — tokens held by the project for liquidity and as a “reserve fund” for the project. Key points to consider: 🟨Investor allocation: usually no more than 30% of the tokens to avoid a massive sell-off after launch. 🟨Community/marketing/airdrop allocation: at least 10%, and in some projects, it can reach up to 50%. 🟨Team allocation: no more than 25% to prevent the developers from concentrating too many tokens. 🟪 Vesting Vesting controls how quickly tokens become available. This is essential for preventing large-scale sales at launch. Vesting ensures that tokens are yours, but they don’t become available immediately — instead, they’re released after a certain period or based on milestones.