Many tokens are flawed because they don’t have true utility.

Without a proper use case and sustainable source of demand, the token design is on a shaky foundation.

Read on to learn the popular type of token utilities and examples for inspiring your own token design 🧵 1/

Designing with utility right from the start is critical.

Why?

Backfilling utility after launching a token is incredibly difficult, and neglecting utility is how many projects are set up for failure from the beginning.

A deep dive on the utility and incentives of UNI, the Uniswap token. 🧵

We’ll cover background, utilities & incentives, vesting + allocation, and future prospects. 2/

— Background —

UNI is the native token of Uniswap, a decentralized exchange (DEX) platform founded in November 2018.

Built on top of the Ethereum blockchain, Uniswap leverages smart contracts to decentralize the trading (buy, sell) and liquidity of tokens from users.

Hiring the top talent in crypto often requires a token comp strategy.

But what’s the best way to design a token comp package?

Here’s a guide by @zorkary from @dragonfly_cap, @3MaxTorres from @AngelBlock_io, and me at @liquifi_finance

medium.com/dragonfly-rese…

Our takeaways👇 2/x

We go over:

💸 1. How to set up token comp
📊 2. Comp data and benchmark resources
3️⃣ 3. Structuring token-based offers using three distinct calculation methods

Thinking about launching a token in this market?

Or granting future tokens to employees and investors?

We did some analysis on the latest tokenomics benchmarks and trends to help you plan your critical token decisions. 1/

“Show me the incentive, and I’ll show you the outcome”

Determining who receives your tokens AND how they’re distributed impacts your token’s perception and performance.

They help determine if the core team and early backers have the right incentives in place.

Are you fundraising as a crypto project with future potential tokens?

Get up to speed on raising with SAFEs + token side letters.

To get the best outcome from investors, here’s what you need to know: Key Takeaways:
1/ Token Side Letter has emerged as the preferred strategy

2/ There are 3 main types of token rights for distribution

3/ Have a token side letter BEFORE you start is key

4/ Get a lawyer to help you draft the right terms for your token allocation plans