Writing a Tokenomics Paper
A tokenomics paper is a separate document dedicated exclusively to token economics. Unlike a whitepaper where tokenomics is one section, here it's a detailed standalone document for investors, exchange listing applications, and community governance.
Tokenomics Paper Structure
Executive Summary: total supply, initial distribution, key utility mechanisms — on one page.
Token Overview: name, ticker, standard (ERC-20, SPL), total supply and justification for this figure.
Distribution:
- Table with percentages by categories
- Justification for each allocation
- Vesting schedule with specific dates
Emission Schedule:
- Circulating supply vs. time chart (minimum 5 years)
- Monthly unlock breakdown by categories
- FDV and market cap projections at different price scenarios
Token Utility:
- Specific use cases of the token (not abstract)
- How utility creates demand
- Token sinks (mechanisms for destruction/locking)
Value Capture:
- How protocol revenue connects to token value
- Fee distribution mechanism
- Buyback/burn parameters
Governance:
- How token is used in governance
- Voting power mechanism
- Proposal and execution process
Risk Factors:
- Competition, regulatory risk
- Technical risks
- Market risk (token price not guaranteed)
Style and Tone
A tokenomics paper is a legally important document. Avoid: promises of returns, price predictions, "token will definitely increase in value." Include disclaimer that the token is not an investment product (in most jurisdictions).
Example of correct wording:
"Token holders may participate in governance by submitting and voting on proposals. The token does not represent equity, debt, or any claim on company assets or revenues."
Writing a tokenomics paper: 1-2 weeks. Includes distribution table, emission schedule model, utility description, and vesting documentation.