Tokenomics Design Sample

About this model

This diagram represents an intricate token economy system designed to simulate the flow and management of digital tokens within a decentralized exchange environment. It incorporates mechanisms for token circulation, staking, rewards distribution, and token vesting, as well as a dynamic pricing model based on supply and demand principles. The core components of the system include pools of tokens that are categorized as "Total Circulating Tokens," "Tokens in Decentralized Exchange," "Vested Tokens," "Staked Tokens Released," and "Tokens Released for Rewards." These pools interact through various transactions such as buying, selling, and releasing tokens, which are represented as resource connections between nodes, with specific formulas determining the rate and conditions of these transactions.

The system integrates mechanisms for staking tokens, where users can lock tokens to receive rewards, and a rewards distribution system that rewards users based on staked tokens. Additionally, there's a converter node for converting staked tokens into rewards. A significant aspect of the diagram is the introduction of a pricing model, calculated by a register node, which adjusts the token price in USD based on the total supply of tokens and funds in USD, influenced by buying and selling thresholds. This schematic represents a comprehensive modeling of a token economy, capturing the interplay between token liquidity, user incentives, and price dynamics within a decentralized exchange setting.

“Tokenomics Design Sample” is a public Machinations diagram by Nicolás Munafó, shared in the Machinations Community.

You can open the original diagram in the Machinations app, press Play to watch how resources move through it, and change its values to see how the system responds. Machinations is a visual tool for designing, simulating and balancing game economies and other systems, where resources flow through sources, pools, drains, converters and gates.