Token economics refers to the mechanisms by which digital assets are distributed and transacted within an ecosystem.

This typically involves a token distribution to different stakeholders and incentive mechanisms for which the transfer of tokens is governed.

A well-structured economy should focus on adoption, sustainability, and scalability. An economy can collapse under the weight of a number of misteps. High inflation due to aggressive distributions, an imbalance in stakeholder equity, or poorly structured incentive mechanisms can all contribute to a failing economy, failing product, and failing company.

Read our article on token economy audits to learn more about the factors must be considered in structuring your digital asset economy.

Arcanum Ventures takes a combination of an agent-based approach and human-centric design. We believe that a token economy should be a feature and not the product.

That means token utilities should enable unique features or improve existing features in your product. We determine exactly what those unique integrations are in your company’s product and user journey.

Each collaboration is different and each client is on their own journey. We openly discuss expectations around deliverables and ensure we’re providing what our clients need, before we start working.

Our standard set of deliverables include a Token Economy overview slide-deck, Token economy whitepaper, Token distribtion model, Economy Summary and Recommendations slide-deck, and Comprehensive Economy Model to create supply effect and financial projections.

Additional deliverables may include investor documents and validation models like Machinations.

The entire process can take anywhere from 1 to 2 months depending on the complexity of the token economy. Designs including multiple fungible tokens, unique digital assets (NFTs), and complex modeling will take longer to ensure we’re doing our due diligence.

Arcanum Ventures is not in the business of churning out economies. We prioritize our reputation and we only work with clients we believe will have a strong positive impact in the industry. As a result, we typically accept a portion of compensation in corporate and token equity in addition to a service fee structure. This way, we’re equally as invested into your success as you are.

Our work doesn’t end at token launch. Arcanum Ventures focuses on product-focused designs – this means revisiting models and projections with early user data is critical. We want to ensure we provide reports and recommendations to maintain stability in the economy.

Our team also makes themselves available for any economy, financial, and go-to-market inquiries you may have. We’re here to help and lending our expertise is no fuss.