🏁 How to Build Long-Term and Sustainable Tokenomics: WAGMI HUB Tokenomics
As I mentioned in my
previous post, we have signed agreements with top-tier launchpads, and today, the first announcement was made by
DegenPad, a subsidiary launchpad of
ChainGPT. Their post outlined WAGMI HUB’s tokenomics, but many in our community have questions about these figures.
In this post, I will explain the purpose of tokenomics, how it is developed, and the key factors that influence it.
🫰 What is the Purpose of Tokenomics?
Tokenomics serves as a commitment from the team, reinforcing the fundamental principles of Web3 — transparency and decentralization. It defines the project’s long-term development plan, fund allocation strategy, and community incentives.
A well-structured tokenomics model ensures that the project remains financially sustainable, aligns with investor expectations, and supports the growth of the ecosystem over time.
🐲 Key Components of Tokenomics
1️⃣ Vesting Schedules
• Determines when and how much funding will be unlocked for different areas of the project.
• Defines the expected holding period for investors and project contributors.
• Public round unlocks at TGE are typically larger than private rounds because private investors have agreements, whereas public participants and airdrop recipients often sell immediately for profit.
• Major projects aim for 100% airdrop vesting to manage supply efficiently.
2️⃣ Allocated Supply for Each Sector
• Showcases how the team plans to develop the project, generate revenue, and prioritize key areas.
• Reflects whether the focus is on short-term gains or long-term sustainability.
3️⃣ Round Valuation
• In the early stages, valuation is based on the team’s experience and credibility.
• As the project matures, it should reflect revenue generation and overall growth potential.
• In Web3, market perception and narrative can often be more influential than actual revenue.
4️⃣ Initial Market Cap (IMC)
• Calculated based on token unlock percentages and listing price.
• A lower IMC makes it easier to achieve high price multipliers at listing, but also increases volatility.
• IMC also provides insights into potential sell pressure and liquidity requirements.
5️⃣ Liquidity Allocation
• Liquidity decisions are influenced by: where liquidity is provided (CEX/DEX), expected trading volumes, overall project goals.
• Too much liquidity may slow price movement and hinder project growth.
• Too little liquidity can limit volume, reducing trading opportunities.
🖐 Community-Driven Projects – A Utopian Vision or Rare Success?
A well-balanced tokenomics model and a lower IMC significantly improve the chances of a strong listing performance and sustainable long-term token growth.
However, according to market makers, if the team and affiliated parties do not control at least 70% of the supply, the token becomes difficult to manage, making price influence highly dependent on external market forces.
Truly successful community-driven projects are either:
✅ Rare anomalies that spark an entire trend (e.g., AI agents).
✅ Projects with hidden market strategies, where team-controlled wallets hold substantial allocations, despite appearing otherwise in public reports.
For example, a 50% airdrop allocation may seem fully decentralized, but in reality, a large portion could be strategically distributed to team-controlled wallets, ensuring better market management post-listing.
If you’re interested in learning more about the inner workings of market strategies, I recommend checking out our
latest Twitter Space, where
Bobster shared insights about Cabal.
🤔 Why Does the Team Hold More Tokens Than the Community?
1️⃣ The more tokens the team holds, the greater their incentive to work on the project and deliver outstanding results.
2️⃣ We fully stand by our statements, and an upcoming announcement in the official WAGMI HUB channel will confirm this.
If you have any questions about tokenomics, feel free to ask in the comments 👇
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