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Token Economy Project

Build Your Own Token Ecosystem

Problem Statement: How do we create programmable money that aligns stakeholder incentives?
Jupyter Notebook Slide Deck

Learning Objectives

  1. Master the ERC-20 token standard
  2. Implement governance mechanisms
  3. Design vesting schedules for token distribution
  4. Create staking rewards systems

Project Architecture

Your token economy consists of four integrated components:

Step-by-Step Guide

Phase 1: Basic ERC-20 Token

// SPDX-License-Identifier: MIT
pragma solidity ^0.8.20;

import "@openzeppelin/contracts/token/ERC20/ERC20.sol";
import "@openzeppelin/contracts/access/Ownable.sol";

contract MyToken is ERC20, Ownable {
    constructor(
        string memory name,
        string memory symbol,
        uint256 initialSupply
    ) ERC20(name, symbol) Ownable(msg.sender) {
        _mint(msg.sender, initialSupply * 10**decimals());
    }

    function mint(address to, uint256 amount) public onlyOwner {
        _mint(to, amount);
    }
}

Phase 2: Vesting Schedule

Category Cliff Vesting Total
Team 12 months 36 months 48 months
Advisors 6 months 18 months 24 months
Investors 6 months 24 months 30 months
Community 0 months 12 months 12 months

Phase 3: Staking Rewards

Implement a staking pool where users:

  1. Deposit tokens into the contract
  2. Earn rewards proportional to their stake
  3. Claim rewards or withdraw anytime

Phase 4: Governance

Add voting capabilities:

Cryptoeconomics Analysis

Question Answer
PROBLEM Coordinate stakeholders without central authority
INCENTIVES Token rewards align user and protocol interests
BENEFITS/COSTS Users get yield; protocol gets locked liquidity
FAILURE MODE Inflation spirals, governance attacks, exit scams
DESIGN CHOICES Fixed vs dynamic supply, voting mechanisms
ALTERNATIVES Traditional equity, profit-sharing models

Implementation Checklist

Related Lessons

Resources