Tokenomics has always been an essential part of a token’s success, recently Binance Labs shared about tokenomics as well as tips to create an effective tokenomics. Maybe this is also the standard for Binance Labs to evaluate the tokens of projects before making an investment decision or even listing on the Binance exchange.
This article is translated by me from the shares of Binance Labs and gives a few more examples from the Binance Labs portfolio, you can refer to it to find similar hidden gems or evaluate the design yourself. tokens of other projects.
Note: This post is for informational purposes only. Not investment advice for any project no matter what is mentioned.
According to Binance Labs, what is a successful token?
A token can be viewed as representing an investor’s stake in a blockchain project. Token holders can profit by trading or simply holding these tokens.
A successful token should have practical applications, closely related to the project, encourage users to use and participate in project governance.
Design tokennomics according to Binance Labs standards
These are detailed sharing of the elements that make up a tokenomics that Binance Labs Recommended for a DeFi project. Of course, this is just sharing, not a fixed formula that projects projects to follow, each project can have its own intentions and breakthroughs from which it has its own tokenomics.
So what are the elements in Tokenomics? Why does Tokenomics play such an important role in the success of a token? How to analyze Tokenomics of the project? Find out more details here: What is Tokennomics?
Token Allocation
Tokens are often divided into different pools to serve different purposes, we often see the following pools:
- Team: This part is used to pay key members, employees, project team, usually at 10-20%. Some companies change this to 100% ownership of the organization respectively.
- Community: Reward members of the community through airdrops, retroactives, or referral programs, usually 10-20%.
- Reserve/Foundation/Treasury: Reserve funds used to pay for mergers and acquisitions, market making, advisory fees, provision for arisings, etc. should account for about 20-30%.
- Seed/private/Strategic Sales: Open-sale sessions to raise capital for project development.
- IDO/IEO: Usually only 1-2% of the total supply, depending on the project’s intentions and the requirements of the IDO platforms.
- Marketing: Usually 10% of total supply.
- Partnerships/Ecosystem: Dedicated to encouraging developers and other projects to integrate products, strengthen partnerships, expand the ecosystem. This part usually accounts for 10-20%.
- Mining Rewards: Reward for providing liquidity, creating incentive to hold tokens, reducing selling pressure, and usually 10%.
Token Release Schedule
Token payment schedule is also an extremely important factor that directly affects the success of a project. There are a few points that we should always pay attention to when evaluating a project:
- Initial circulation: Depends on the field of the project, but it is best to keep the initial amount of tokens in circulation at less than or equal to 20%. The reason was because the project was in its infancy at that time, the market capitalization should closely follow the project’s achievements to avoid high inflation.
- Token allocation period (Vesting Period): Binance Labs often encourages projects to extend their vesting period to 5 years or longer, in order to allow enough time to build a solid token structure, and this is also proof that the project is on the way. long.
- Inflation (Inflation): According to Binance Labs, the amount of tokens that are increased every month should always be well controlled, pay attention to the amount of tokens from different pools, and always make sure the number of tokens unlocked will be enough for the project to pay for the fees. .
Tokenomics analysis of projects that Binance Labs invests in
After having a background on effective tokenomics design suggestions from Binance Labs, I will review with you a few recent projects that Binance Labs has invested in with similar tokenomics to the above suggestions.
Note: The information provided in this article is for informational purposes only and is not investment advice.
Automata Network
Automata Network is a decentralized service protocol that provides security middleware for DApps.
On February 11, Binance Labs announced that it became a strategic investor of Automata, supporting the development project. Web3 and privacy-focused products and services, including:
- A foundation NFT versatile.
- A deployment platform KNIFE (decentralized autonomous organization) multi-chain.
- A software API media is under development.
Token Supply
- Total supply: 1,000,000,000 ATA.
- Current circulating supply: 201,319,221 ATA.
- The ATA token was initially marketed via Binance Launchpool (4%) and primarily through Automata Network’s mining program.
⇒ The initial amount of tokens sold is moderate, mainly to encourage users to use the product.
Token Allocation
- Protocol Reserve: 35%
- Ecosystem and Dev Community: 30%
- Team: 15%
- Strategic Sales: 6%
- Seed Sale: 5%
- Strategic Partners and Advisors: 5%
- Binance Launchpool: 4%
Token Release Schedule
ATA tokens are allocated according to the following chart:
Token Use Case
The ATA token is used to:
- Governance: ATA token holders can create and vote on proposals. The content of Proposal includes: platform features, network parameters,…
- Mining rewards: Compute and storage miners earn ATA tokens by running applications and performing transactions for users on the network.
- Protocol fees: Users pay miners for storage and computation work.
- Geode allocation: User can link ATA token to participate in Geode auction.
⇒ The long-term token allocation time, the token allocation rate also follows closely the suggestions from Binance Labs, the token is also associated with specific uses, encouraging users to use the project’s products.
Techtipsnreview
Techtipsnreview is a DeFi Multi-chain ecosystem that includes a full suite of products to serve users’ needs, from transactions, storage to asset management, lending, savings,…
Earlier this past January, Binance Labs announced a strategic investment in Techtipsnreview, helping Techtipsnreview build an even more complete DeFi toolkit, thereby contributing in return for building DeFi infrastructure on BNB. Chain.
Looking for more information: Overview of birth relationships Thai Techtipsnreview
Token Supply
- Total supply: 1,000,000,000 C98
- Current Circulating Supply: 185,000,000 C98
- At the time TGE has 18.5% C98 tokens unlocked, 5% comes from Binance Launchpad Sale, the remaining 13.5% comes from community development fund, ecosystem.
C98 Token Allocation
- Ecosystem Growth: 21%.
- Community Development: 20%.
- Team: 20.00%.
- Strategic Sales: 15%.
- Treasury: 12%.
- Seed Sale: 5%.
- Binance Launchpad Sale: 5%.
- Advisors: 2%
⇒ The token distribution ratio is quite similar to the suggestion from Binance Labs.
Token Release Schedule
The C98 token unlocking schedule goes as follows:
⇒ When the project was still in its infancy, the number of tokens unlocked was only about 20%, the lock and vesting time was also quite long, ensuring the development time for the project.
Token Use Case
C98 will be used for the following purposes:
- Transaction fee: Each trading order on Techtipsnreview ExchangeTechtipsnreview will collect a part of the transaction fee.
- Product development: C98 revenue from transaction fees or other sources, will be used to further encourage Techtipsnreview contributors including Liquidity Provider, Staker, Users,…
- Staking incentives: C98 will be used to reward Liquidity Protoviders on Techtipsnreview Exchange.
- Governance: As a DeFi protocol and wanting to empower the community, Techtipsnreview allows C98 staking users to make Proposals and be decided by the community.
- Unique Membership Rights: C98 holders will be divided into tiers and enjoy Incentives from Techtipsnreview, or events from Techtipsnreview’s partners.
⇒ It can be seen that the token use case is quite diverse and closely associated with Techtipsnreview’s products.
Not only DeFi projects, in the next part, Binance Labs will share experiences in tokenomics in the GameFi segment. This will be very valuable information and I will send it to you as soon as Binance Labs publishes it in the next articles.
Epilogue
Above are experience sharing on how to design tokenomics from Binance Labs and a few similar practical examples that have been invested by Binance Labs. This can also become a reference for those who want to find out projects that can be invested by Binance Labs or even list Binance exchanges in the future, or simply to evaluate a tokenomics standard for themselves. project.
Note again that the article is for informational purposes only, not investment advice for any project. You should consider and DYOR before investing! If you have any questions, don’t hesitate to join Techtipsnreview Insights’ groups and discuss with admins and many other members of the community.
Source: The secret to successful tokenomics design according to Binance Labs standards
– TechtipsnReview
