Services
A token economy should be a feature, and not the product. Arcanum Ventures takes a product-focused approach to sustainable economies in robust business models. Our designs are research-backed, our models are stress-tested, and our concepts are innovative.
Token Economy Design
A full buildout that starts from the ground up. We use a human-centric design philosophy that incorporates agent-based modeling, innovative concepts, and digital asset integrations that tie back to products and features.
Economy Audit
Peace of mind is hard to come by. Arcanum Ventures, offers just that with our in-depth economy audit. We bring the same design philosophy to our audits while taking an investor perspective.
Consultation and Advisory
Tokenomics consulting and advisory has helped our clients avoid significant mistakes. Leverage our experience and understanding of the industry to better scale your business.
Financial and Digital Asset Modeling
Research-informed modeling, accurate projection forecasting, and professional reporting to check up on your economy’s health.
Trusted By Web3 Founders
“Working with Arcanum Ventures has been an enlightening journey, underlining the true meaning of pushing boundaries in the world of web3. Their knack for driving innovation, paired with a laser-focused approach to swift and tangible outcomes, has set the cornerstone for the development of the Saltwater Games ecosystem token.
It’s not every day you find a partner who marries the art of exploration with the science of execution. Arcanum Ventures embodies this, making the complex world of blockchain not just approachable, but transformative”
“Sasha and Carmelo made it happen like the professionals they are. They intelligently approached our situation, patiently mapped out what we envisioned, and delivered a tokenomics plan that has impressed everyone we’ve shared it with.
Carmelo and Sasha have become our friends. They’ve become our advisors. We consider them part of the family. If that doesn’t tell you how we feel about Arcanum, you need to reread what we’ve stated here. This time, pay attention.”
“Arcanum has been advising us from the get-go. Through all phases of our journey they provided one-stop advisory. They assisted in strategy, go-to-market as well as tokenomics. They always go the extra mile and continue to help us make better-informed decisions”
“There are a lot of crypto VC players on the market: well-established ones and newcomers, and the number continues growing despite market conditions. But there are just a few that stay aside as very special VC partners. We love the Arcanum VC team because they represent a perfect combination of web3 expertise and crypto flexibility with traditional ethics and professionalism, aka «venture capital with a human touch».
They’re the ones that are not running for fast exits and hide behind the numbers: they truly like startups and respect founders, providing clear feedback and being transparent in decision-making. Many startups from InnMind learned, that you can’t expect a light-minded decision after a 15 mins call: Arcanum does their due diligence on a deep level. But once they decide to invest, you can expect true «smart money» with care, attention, and support for portfolio companies. That’s so rare nowadays and can’t be overestimated.”
The Latest Tokenomics Publications
What are Tokenomics and Why Do They Matter?
February 15, 2024
In the burgeoning world of blockchain and cryptocurrency, one term you've likely encountered is "tokenomics," a portmanteau of "token" and "economics." These two terms can be used interchangeably although some debate exists about the differences in terminology.
Tokenomics For Reputation Systems
December 21, 2023
“Proof-of-Contribution” is a concept we embrace at Arcanum Ventures. For token economies that focus on distributing rewards based on strict criteria, only the very best participants will be rewarded.
Phasing Out a Web3 Token Economy
November 9, 2023
“The majority of token startups can exist without a token.”
This was once the most controversial statement someone could make in this industry, quickly drawing ire and looks from web3 founders who then mentally blackballed the offender. Still today, in many circles, this can trigger crypto veterans who have been around to see several cycles of speculation, manipulation, and deception.
Web3 Fundraising: Tokens or Equity?
October 31, 2023
Although the growing interest in web3 equity came from investor interests, it was accompanied by a healthy side-effect. The classic trope of “it’s a feature, not a bug” quickly became relevant as satisfying investor appetite suddenly allowed a more viable end-product.
The Evolution of Cryptocurrency Vesting
October 24, 2023
Cryptocurrency investments offer venture capitalists something they never had before - early liquidity. These digital assets granted opportunities to secure returns against financial risk at a far earlier stage. The viability of these opportunities was largely measured by equity transfer terms - “vesting schedules,” in the case of web3.
Tokenomics FAQ
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.
Our process is broken down into four phases:
- Discovery phase is where we meet in several workshop sessions to get a complete understanding of your company, products, and vision.
- Development phase is where we conceptualize the token economy, develop a distribution model, and draft a token economy whitepaper giving you more than enough to begin investor discussions.
- Deliverable phase is where we develop a model and create long-term supply effect and financial projections based on the MVP utilities. You can expect datasets, infographics, summary slide-deck, and recommendations document to assist your team in developing blockchain infrastructure.
- Support phase is where we continue advising around the project’s economics and perform remodeling work as necessary.
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.
Arcanum Ventures creates educational content to help investors and cryptocurrency enthusiasts learn tokenomics concepts. Visit our Crypto ABC video series here to learn some cryptocurrency basics, and be sure to check our Tokenomics articles to learn about more complex concepts.