The Science Of A Successful Token Sale: How To Nail Your ICO Tokenomics

A comprehensive guide to token sales, allocations, and ICO structure

Max Yampolsky
Web3 Labs
Published in
33 min readDec 3, 2021

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All token creators and project owners planning to make the initial coin offering (ICO) ultimately face a set of dilemmas related to structuring their token sale.

  • How much should we raise?
  • What should be the token allocations?
  • Should we do an ICO or IDO? Or IEO?
  • Should we make private sales or not? How many rounds?
  • How do we prevent sell-offs after the token is live?

This article answers all these and many more questions faced by token creators. In addition, it aims to describe the process of a typical token sale and different fundraising mechanisms used by project organizers. You can equally use this post as a blueprint for a token sale design.

Warning: Just let me warn you, this article is not a quick fix. It is rather a guideline that you need to read, analyze, process, and then act upon. If you want a faster solution to your tokenomics, shoot me an email, and we’ll find you an expert.

Let’s jump in!

Preface

Many experts say there is no 100% right or wrong or ideal way to conduct an ICO. This is partially true. Each project is unique, and the circumstances often are too different to fit the one-size-fits-all token launch formula.

However, suppose you know the practical ICO rules of thumb and the various options available for your disposal. In that case, you can avoid many mistakes and drastically increase your chances of having a successful ICO.

There are a few things to consider before you start:

Pre-requisites

Fact: a well-structured token sale is NOT a guarantee for a successful token launch.

Apart from the sale itself, there are other critical components of the ICO. In total, there are three most important ones:

a) Token economy & utility design

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Max Yampolsky
Web3 Labs

Building web3 and DeFi products. Writing about crypto and tokenomics. Founder of One Click Crypto