Learning Objectives
By the end of this workshop, you will be able to:
- Design tokenomics for a decentralized platform, balancing utility, governance, and value capture
- Align incentives across multiple stakeholder groups (users, builders, investors, community)
- Create vesting schedules that prevent early dumps and ensure long-term commitment
- Evaluate distribution fairness and defend design decisions under criticism
- Articulate token value propositions clearly and persuasively
Workshop Overview
This is a hands-on token design exercise where you'll work in small groups to design the token economics for a decentralized platform. You'll receive a project brief, design a complete token model, and present your design to the class for feedback.
Activity Timeline (75 minutes)
- Form groups of 3-4 students
- Receive your project brief (randomly assigned)
- Read and discuss the platform scenario
- Complete the Token Design Canvas
- Design your distribution pie chart
- Create vesting schedules for key stakeholders
- Document your value capture mechanism
- Prepare arguments for your design choices
- Assign presentation roles (pitcher, distribution explainer, responder)
- Practice your 2-minute pitch
- Anticipate criticism
- Each group presents (5 minutes per group)
- Peer feedback and instructor critique
- Class discussion on trade-offs
- Key takeaways discussion
- Common pitfalls review
- Q&A
Presentation Format
Part 1: The Pitch (2 minutes)
Goal: Explain your token's core value proposition
- Token name and utility
- What problem does it solve?
- Why would users want to hold/use it?
- Supply model rationale (fixed/inflationary/deflationary)
Part 2: Distribution Breakdown (2 minutes)
Goal: Show and defend your allocation
- Present your pie chart (percentages for team, investors, community, etc.)
- Explain vesting schedules for each category
- Justify why this distribution is fair and sustainable
- Address potential concentration risks
Part 3: Peer Critique (1 minute)
Format: Other groups ask critical questions
- Example: "What prevents your team from dumping tokens after 6 months?"
- Example: "Why did you allocate so much to investors?"
- Example: "How do you prevent inflation from devaluing the token?"
Your task: Defend your design choices with evidence and reasoning
Critical Requirements
- Your token MUST have clear utility beyond speculation
- Distribution MUST add up to 100%
- Vesting schedules MUST be specific (months/years, not "gradual")
- You MUST explain how token value accrues (burn, staking, governance, etc.)
- Justify EVERY design choice - "because that's what other projects do" is not acceptable
Tips for Success
- Start with utility: What does the token DO? Why is it essential to the platform?
- Think adversarially: How could someone game your system? Design to prevent it.
- Balance stakeholders: Everyone needs incentives, but concentration creates risk.
- Be specific: "Vest over time" is vague. "24-month linear vesting with 12-month cliff" is clear.
- Connect to concepts: Reference course material (agency problems, Sybil attacks, free-rider problem, etc.)
Deliverables
Each group must complete and submit:
- Token Design Canvas (completed worksheet)
- Distribution Pie Chart (drawn/labeled)
- Vesting Timeline (filled out for all stakeholder groups)
- Oral Presentation (5 minutes, all members participate)
Grading
This assignment is worth 50 points and will be evaluated using the provided rubric. Key criteria include:
- Token utility design (15 points)
- Distribution fairness (10 points)
- Vesting schedule quality (10 points)
- Incentive alignment (10 points)
- Presentation clarity (5 points)
Academic Integrity
While you may reference existing token designs for inspiration, your design must be original. Copying another project's tokenomics wholesale will result in zero points. Show your reasoning and adapt concepts thoughtfully to your specific use case.
Materials Needed
- Token Design Canvas (provided)
- Pie Chart Template (provided)
- Vesting Timeline Template (provided)
- Project Brief (assigned by instructor)
- Markers/colored pencils for charts
- Calculator (for percentages)
Questions?
Ask your instructor during the workshop. Remember: there are no "right" answers in token design, only trade-offs. Your job is to make thoughtful choices and defend them convincingly.
Ready to Begin?
Step 1: Form your group
Step 2: Get your project brief
Step 3: Start designing!
Good luck, and think like a cryptoeconomist!
Related Resources
Assignment Resources
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