Contract
- Input: problem description and inputs defined by the skill body.
- Output: Markdown artifact with completed process steps.
- Side effects: none.
- Dependencies: none.
- Stop condition: all process steps executed; artifact saved with required sections.
- Risk: low.
- Boundary: produces reasoning artifact only; no system changes.
Tokenomics Design
Design the economics of a token — supply schedule, incentives, governance, value capture — and stress-test it for sustainability and attack surfaces.
When to use
- A project needs a token economy designed or audited.
- The user wants to understand a token's sustainability or compare token models.
- A governance or incentive mechanism needs economic analysis.
Process
1. Define purpose and type
State the token's core purpose: medium of exchange, governance, staking/reward, utility access, security (staking to secure network), or hybrid. Name the token type: fungible (ERC-20 / similar), non-fungible (NFT), or a hybrid.
Completion criterion: purpose and token type explicit.
2. Supply mechanics
Specify:
- Initial supply — genesis amount, mint mechanism, pre-mint / initial distribution.
- Max supply / cap — hard cap, soft cap, or uncapped (inflationary).
- Emission schedule — linear decay, exponential, or event-triggered (block rewards, staking yield).
- Burn / buyback — how tokens leave circulation; is it automatic or manual?
- Vesting — team / investor / ecosystem lockups; linear, cliff, or schedule.
Completion criterion: initial supply, cap, emission, vesting all present with numerical values.
3. Incentive design
Name who earns tokens, how, and for what behaviour:
- Validators / stakers: yield rate, slashing conditions, unbonding period.
- Users: rewards for participation, discounts, rebates.
- Treasury / ecosystem: funding mechanism (fee capture, inflation share).
- Liquidity providers: rewards, impermanent loss, lockup.
Completion criterion: each participant class has an explicit reward mechanism and risk (slashing, lockup, impermanent loss).
4. Governance
Describe who decides protocol changes, parameter updates, treasury use. Include:
- Voting mechanism (token-weighted, quadratic, delegated, time-weighted).
- Quorum requirements.
- Execution mechanism (timelock, multi-sig, direct execution).
- Governance attacks — vote-buying, low-turnout capture.
Completion criterion: voting mechanism, quorum, execution, and at least one governance attack scenario documented.
5. Economic stress tests
Test for sustainability:
- Demand shock: what if token price falls 90%? Do incentives collapse?
- Inflation spiral: does emission outpace adoption?
- Governance capture: can a single actor acquire veto or proposal rights?
- Value capture: does the protocol actually capture value (fees, burns), or is it purely speculative?
- Regulatory risk: is the token a security under major jurisdictions?
Completion criterion: each stress scenario described; the weakest point named.
6. Deliver
Markdown artifact: purpose, supply, incentives, governance, stress tests, and a sustainability verdict — sustainable, fragile, speculative, or unsustainable.
Completion criterion: deliverable present; verdict is honest and supported by stress tests.