Tokenomics Design Answers
For educational and illustrative purposes only. Not financial, investment, or legal advice.
The most common questions about token allocation, vesting schedules, risk scoring, and tokenomics design. Real concepts, no fabricated benchmarks.
How many allocation categories should my tokenomics have?
Most projects use 6 to 8 categories: Team, Advisors, Private Sale, Public Sale, Community, Ecosystem, Treasury, and Liquidity. Fewer than 5 can signal oversimplification; more than 10 adds complexity without benefit. The tool lets you add and remove categories freely — start with a template and adjust from there.
What percentage should team allocation be?
Team allocation typically ranges from 10% to 20% of total supply. Below 10% may not incentivize long-term commitment; above 20% raises concentration risk. The risk scoring engine flags single-category allocations above 40% as a concentration risk. What matters more than the percentage is the vesting schedule — a 20% team allocation with a 12-month cliff and 36-month vesting is very different from 20% with no cliff.
How long should the team cliff be?
The most common cliff for team and advisor tokens is 12 months. Some projects use 6-month cliffs. The risk scoring engine penalizes cliffs shorter than 12 months for insider categories — shorter cliffs allow earlier selling, which can reduce investor confidence. A 12-month cliff signals long-term commitment.
What is a good TGE unlock percentage?
It depends on the category. Liquidity and public sale tokens are typically 100% unlocked at TGE. Community tokens usually unlock 10-20% at TGE. Team and advisor tokens should have 0% TGE unlock. The risk scoring engine weighs insider TGE unlock at 25% of the total score — high insider TGE unlocks are one of the biggest red flags for investors.
Should I use linear or cliff-based vesting?
Linear vesting releases tokens continuously (every block or every month). Cliff-based vesting locks tokens for a set period, then begins releasing them. Most projects use a combination: a cliff period (e.g., 12 months) followed by linear or monthly-step vesting (e.g., 36 months). The cliff prevents early dumping; the gradual vesting after the cliff aligns incentives over time.
What is a healthy tokenomics risk score?
The composite risk score ranges from 0 (most conservative) to 100 (most aggressive). A score of 0 to 33 is rated "Conservative" — long cliffs, low TGE unlocks, no inflation. A score of 34 to 66 is "Moderate" — balanced tradeoffs. A score of 67 to 100 is "Aggressive" — short cliffs, high TGE unlocks, concentrated allocation. There is no universally "good" score; the right level depends on your project's stage and goals.
What happens if I set inflation too high?
Token inflation (emissions) increases the total supply over time, diluting all existing holders. At 3% annual inflation over 5 years, total supply grows roughly 16%. At 10% annual inflation, it grows about 61%. The inflation simulator models this compound growth and shows how it affects ownership percentages at each milestone. The risk scoring engine penalizes inflation rates above 5%.
How much of the supply should circulate at TGE?
TGE circulating supply typically ranges from 5% to 40%, depending on the model. Fair launch models aim for high TGE circulation (40%+) to ensure wide distribution. Venture-backed models often have lower TGE circulation (10-15%). The risk scoring engine considers both extremes risky: below 5% creates manipulation risk; above 50% creates dump risk.
What is the difference between Build My Tokenomics and Token Launch Simulator?
Build My Tokenomics designs pre-launch tokenomics: supply allocation, vesting schedules, unlock timelines, and risk scoring. Token Launch Simulator models post-TGE pool dynamics: AMM liquidity, price impact, slippage, and market simulations. They are complementary tools for different stages of the launch process. Design your tokenomics first with Build My Tokenomics, then model your launch pool with Token Launch Simulator.
How do I present tokenomics to investors?
Investors look at five things: (1) insider allocation percentage and vesting terms, (2) cliff lengths for team and advisor tokens, (3) TGE circulating supply, (4) whether any single category holds more than 30-40% of supply, and (5) the inflation schedule if one exists. The export feature generates a one-page PDF with all charts and the risk score breakdown — designed specifically for investor presentations.
Should I include a treasury allocation?
Most projects allocate 5-15% to a treasury for operational expenses, future development, and strategic partnerships. Treasury tokens typically have 0% TGE unlock with quarterly vesting over 3-4 years. A treasury provides long-term operational runway without requiring additional fundraising. The Community DAO template allocates 30% to treasury — the highest of all presets.
Does this tool store my tokenomics data?
No. All calculations run entirely in your browser using client-side TypeScript. No tokenomics parameters, allocations, or results are sent to any server. Your design data stays on your device. If you choose to subscribe for the export feature or newsletter, your email address is collected and stored separately via our email service provider.
Want to model these scenarios yourself? Try the Tokenomics Designer →
New to tokenomics? Start with our glossary.
For educational purposes only. Not financial, investment, or legal advice. See Terms of Service.