Choosing the right numbers
Selecting Gate Levels and Spend Levels based on total and weekly distribution of tokens
Brief Tokenomics Overview
Tokenomics can be thought of as distribution of tokens over time. Within this framework we have a total supply of tokens, a circulating supply of tokens, and a rate at which the circulating supply increases. We couple this concept of supply with distribution touch points, or engagement opportunities. Over time, as your works grow and you amass a larger community there will be shifts in distribution of your tokens.
When looking at gates for access to exclusive content, we like to think about exclusivity based on total wallet holdings. This encourages holding NFTs longer, to earn more tokens, to get more access. It respects your biggest collectors and their desire to collect multiple pieces and hold for the longterm.
We need an equally elegant approach to setting spend or pricing levels. In this instance we are trying to balance economic activity with growing your community and creating the ability for people to join the community and be incentivized in the shorter term. We need to respect the distribution curve and the inequalities it will have. All economies face this so here is our plan. We recommend basing spend levels on the weekly rewards levels. We take these levels multiply them by 8 weeks. This encourages short term holding, while gate levels encourage holding for medium term. All of this skews towards helping people towards the bottom of your economy while maintaining exclusivity for top holders.
A final note is the use of percentiles. Percentiles create groupings based on holdings. These grouping represent a percentage of your holders. While a percentile should represent a specific percentage, this amount is distorted by the distribution curve. This causes gaps in the amount being distributed or held, and these gaps are accompanied by how large of a group holds that same of a given amount.
P00LS will offer the Token Tool (in development) to help easily calculate and suggest levels for you. All you have to do is pick a reward size. The gate tool will give values based on total holdings and the spend tool will give values based on the weekly distribution of your tokens.
Token-Gating: Choosing the right gates
Top 5%
95th
XL
Exclusive
Top 15%
85th
L
VIP
Top 25%
75th
M
Preferred
Top 50%
50th
S
Select
Top 90%
10th
XS
General Admission
Token-Spending: Choosing the right prices
Top 1%
99th
XL
Exclusive
Top 7%
93th
L
VIP
Top 15%
85th
M
Preferred
Top 50%
50th
S
Select
Top 90%
10th
XS
General Admission
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