Tokenomics: Understanding the Mechanics of Token Emission
Tokenomics is the study of how cryptocurrencies and other blockchain-based projects operate, including the mechanics of token emission, allocation, and distribution. In this article, we will delve deeper into the tokenomics of a hypothetical project, analyzing the various stages of token issuance, allocation, and distribution, and discussing their potential impact on the project’s overall success.
The hypothetical project in question has issued a total of 100 million tokens, with an initial price of $0.10 per token. The first stage of token allocation is reserved for the founder, who receives 10% of the total token supply (10 million tokens). These tokens are locked for a period of three years, ensuring the founder’s long-term commitment to the project.
Next, 4% of the tokens (4 million tokens) are allocated to various developers who will be working on the project. These developers can receive payment either in USDT or HADA tokens, deducted from the pool allocated for development, according to the Whitelist price.
The marketing allocation consists of 3% of the total token supply (3 million tokens), which will be used after the start of public sales to attract audiences to the project. The remaining tokens from previously spent marketing funds will be deducted from the pool/contract, based on the Whitelist price.
The Whitelist allocation is 1% of the total token supply (1 million tokens), allocated to participants who pass the allocation principle. Participants will be allocated 1000 tokens for $0.10 each, resulting in 1,000 potential token holders. The total allocation amount is $100,000.
The next stage is the SEED sale, which is open from April 1st to April 30th, 2023, or until all tokens are sold. The SEED sale offers tokens at $0.20 per token, and 2% of the total token supply (2 million tokens) are allocated for this stage. Liquidity protection is set at 15%, which will be placed immediately, with the rest linearly distributed within 18 months. Any unsold tokens from the SEED sale will be allocated to the Private Sale stage, which offers tokens at $0.40 per token.
The Private Sale stage runs from May 1st to May 31st, 2023, or until all tokens are sold. 6% of the total token supply (6 million tokens) are allocated for this stage, with a liquidity protection of 25% placed immediately, and the remaining tokens linearly distributed over 24 months. Any unsold tokens from the Private Sale will be allocated to the Public Sale stage.
The Public Sale stage is the final stage of token allocation, offering tokens at $1 per token. 45% of the total token supply (45 million tokens) are allocated for this stage, and it begins on June 1st, 2023, on Pancake Swap by adding partial liquidity. Any unsold tokens from the Public Sale will be allocated to the payout to hodlers and staking stage.
The payout to hodlers and staking stage is allocated 10% of the total token supply (10 million tokens). HADA token holders will receive a proportionate distribution of tokens from this stage. When staking, 5% per annum in HADA tokens will be accrued, and staking is for 4 years or until all tokens are paid out. Tokens are credited daily.
The Safety allocation is 9% of the total token supply (9 million tokens), allocated to ensure the safety and emergency situations of the project. Finally, 10% of the total token supply (10 million tokens) is allocated for legalization and approvals to open new properties.
In conclusion, tokenomics is a critical aspect of