1/ #Tokenomics are essential when researching a project. You can eliminate 50% of projects on tokenomics alone. In this tokenomics MEGA-THREAD I'll break down BEGINNER tokenomics. In this one, I'll break down vesting and presale investors.

Keep reading below.
Most #cryptos will not release their total supply at launch. Supply will be released slowly over time. Bitcoin is an example of this. It has a total of 21m and a circulating supply of 18.89m.
TTT is the time it will take for the total supply to be reached. If you see a new project with a total supply of 10m, a circulating supply on release of 500k, you know there are 9.5m tokens unreleased.

When will they release? This is important to know.
The first info I look for when assessing token release is distribution. Normally you'll find a chart or table in the whitepaper that explains token distribution. In this thread, we will focus on presale distribution.
Usually, presales will be referred to as seed, VC, private, strategic, angel or public round. These are sales rounds in which people are able to purchase at presale prices.

I add up all presale rounds to get an idea of how many presale tokens are held.
Presales generally account for 5%-30% of tokens. My rules are the less, the better. If a project dedicates over 30% of tokens to presale, I question their long term goals. It's not a straight-up pass, but it is concerning. This is where vesting comes in.
Presale prices are usually 3-5 times lower than release prices. On release day a hyped token can easily do a 5x meaning presale investors (PIs) could be up 20x or more. To prevent massive dumps, PIs are vested.
8/ -VESTING cont-
Vesting means their tokens are released slowly over weeks, months or years. Using the 10m token example above, imagine 30% of the 10m is for PIs (3m).

That 3m is subject to vesting with 10% at TGE and 90% released monthly over 2 years.
9/ -VESTING cont-
TGE means token generation event. Upon the initial token release, PIs are given 10% (300k) of tokens.

The rest of their tokens are released monthly over 2 years. You calculate the amount released monthly like this:

90 / 24 = 3.75% per month.
10/ -VESTING cont-
This is an example of a good vesting schedule because PIs will only be able to dump 3.75% of tokens per month, which won't have a significant impact on price. Furthermore, it won’t be in their interests to dump and hurt price because they are in for 2 years.
11/ -VESTING cont-
If influencers are in the presale, it is in their interest to continue making videos and tweets about the project for two years to keep it trending.
If the 3m vested tokens were done like this:

30% at TGE and 70% released linear over 2 months.

This would scare me. PIs would get 30% of their tokens on release day. If they invested $1k and the token was up 20x they would have $6k worth, dumping is likely.
13/ -BAD VESTING cont-
The rest are released linear over 2 months, which means they get a % per day. Imagine 60 days in the 2 months, 70% of tokens are released over 60 days, which is 1.16% per day.

This could have a detrimental impact on token prices as PIs would be dumping.
14/ -CLIFFS-
Sometimes you'll see a cliff period. This is a period in which the PI gets no tokens. EG

10% at TGE, 3 month cliff, and 90% released linear over 1 year.

The cliff here means the PI gets 10% at release, nothing for 3 months, then vesting begins.
The best projects have long vesting periods and less than 30% of tokens sold presale. Sometimes a project will sell 40% presale and have 3-year vesting, this is okay too because large amounts sold presale can be offset by long vesting.
16/ -WHAT TO LOOK FOR cont-
There are no hard rules, you need to apply common sense. What you don't want is huge amounts of tokens being released on a monthly basis to presale investors who are up 50x. The incentive for them to dump is far too high.
A calculator will be your best friend when dealing with tokenomics. Vesting and presales are the most important part, but it is just the start of tokenomics. In future threads, I will break down things like burning, reflect, and other more complex topics.
$AAG, $NGL. I will add more as I find them.

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More from @LadyofCrypto1

28 Nov
I shared this 2 days ago and my following exploded.

My story is true, but I didn't only pick winners. I picked cryptos that dumped. I got rugged. I bought tops. I sold bottoms.

I put 5 figures on $BUNNY at $500. That was a -99.5% lesson.

I am not perfect. I am often wrong.
I keep going though.

When I pick a good crypto I take profit religiously and reinvest the dips, or into other projects.

I research my ass off to find projects early. When I do get in late I scale in dips instead of ape.

I have a small team and we share research.
Success isn't always being right. It's about accepting when you're wrong and learning from it. It's also about working as hard as you can to achieve your goals.
Read 4 tweets
28 Nov
1/ This is how I bought $SAND at 0.06 and held it till today.

I talk about scaling in and out all the time, but visualising how to do it over several months, and retraces, is hard.

Now you have a rough guide. These numbers are not precise but close enough. NFA DYOR
2/ So when people ask "what's your target"

I do not have one. I invest for the long term scale-out profit at resistance and scale in at support on dips.

For $SAND I was using psychological levels as support and resistance.

Read 6 tweets
27 Nov

- Low market cap ($252 m)
- #Metaverse & #PlayToEarn
- On $AVAX
- The game looks amazing
- VC vesting is great

Not financial advice, do your own research.

@Talecraftio #NFT #NFTGame
Metaverse is a booming sector. A $25m market cap would put this in the top 80 metaverse. In my opinion this is much higher than a top 80. Long-term I would expect a market cap of a few hundred million.

This is not financial advice, it's my personal expectation.
The tokenomics for CRAFT are phenomenal. 1.7m circulating supply at the moment, the max supply is 30m but there is a burning mechanism which will eat away 5m of the supply.

CRAFT is required in order to play the game, which will keep demand for the token high.
Read 7 tweets
25 Nov
1/ Last week I wrote about #Metaverse and #PlayToEarn cryptos decoupling from $BTC.

Every day that goes by, that is looking more and more like reality. Will it last? I am hopeful, but not convinced.

2/ This chart shows $MVI, which is the Metaverse index, an index of several MV cryptos overlaid on a $BTC chart.

Since the end of September MV has decoupled from BTC. This was due to Zuckerberg changing FBs name to Meta. News based decoupling is common and not noteworthy.
3/ From the 10th of November, things have become strange. We are seeing a true decoupling. Last week I thought it was momentary and things would reset. One week later the gap is only getting bigger.

Is it permanent?
Read 8 tweets
23 Nov
1/ When I first looked at $LYXE I wasn't blown away. Big mistake, this #metaverse and #NFT crypto is an absolute gem. Now I have my second chance and I won't waste it.

I've shared my LYXE entries already, I've gone bigger at 17. This one is a 3-6 month hold.

2/ Lukso is a #blockchain for #NFTs using ETH 2.0 proof of stake. At least it will be when the mainnet comes out. It is dipping right now because the mainnet was delayed. Delays are good, it means they aren't rushing out something that doesn't work to keep people happy.
3/ It also means that paperhands have gifted me prices I thought I would never see again, thanks 😘

Why is Lukso so good?

First, it gives you an identity in the metaverse that you can take from MV to MV, even on different blockchains. Some other cryptos do this.
Read 15 tweets
23 Nov
1/ This is the first in a series of articles on gem hunting. I'll start with the easiest way, launchpads (LPAs).

Some say that LPA #cryptos aren't gems because of presellers price dumping, but I got a lot of good #PlayToEarn and #Metaverse gems for LPAs. They're 💎 imo.
2/ You need to be aware of vesting schedules, so you can plan for dips when presale holders dump. This info is on the LPAs telegram.

If you don't know what a LPA is, it's a service that promotes and launches cryptos. Holders of the LPA crypto get presale prices.
3/ You can find gems by visiting a LPAs website and looking for projects that are launching. You won't be able to get in presale if you don't hold the LPA, but nothing is stopping you from getting in after public release.
Read 7 tweets

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