Creating a vibrant and connected Community is foundational for crypto/web3 projects. Why? These projects are built on top of blockchains. Inherent in blockchains is ownership. Network effects are enabled when a large community “owns” a project, this in turn drives success.
Tech has taken off. The first wave was Web1 (remember Yahoo and Craigslist?) and then came Web2 (think Netflix and Uber). Think about all the apps your phone … God forbid we have to live without our phone for a day? This is what the famous adage “software ate the world” refers to: our addiction to tech.
At Hypermode we are incubating Mertium – a crypto & finance news aggregator that uses advanced AI to show trending crypto news along with latest market trends in a hyper-personalized manner. Crypto is exploding! Bitcoin was the fastest to reach $1 Trillion Market Capitalization in just 12 years, beating Google, Amazon, and Apple – it’s moving really fast!
Tokenization of digital and physical assets is moving mountains like never before. With blockchain and crypto, anyone can create a token with an incentivization system. This is tokenomics …. Token and Economics …. Collectively the sum of these systems is an incentivization system that humans have never seen or experienced before. That is why tokenomics is important for community growth.
Kickstarting your community management can be tough at times, but we are here to make this journey smoother. Here is the step-by-step guide from Hypermode’s blockchain consulting experts to help you scale your community, starts with:
They are distinctive with a product/service that delivers sense of belonging among devoted group of people
After a business has successfully analyzed the token-to-market-fit, market, mechanism and token pillars, a token launch strategy is implemented. All Web3 projects follow one of the following three strategies for their token launch:
he most important factor to consider when launching the crypto token is to identify the token-to-market fit. Actual need for a token in the market! Need that drives the demand and supply factors. “token-to-market fit is the new product-to-market fit for businesses in Web3, William Mougayar” Sooner or later, all businesses in blockchain need to launch their crypto tokens.
Tokenomics is defined as “the practice of designing the economics of a crypto token so that users/holders of tokens can get the value associated with these tokens.”
Tokenomics has become the backbone of almost all the Web3 and blockchain projects because these projects need an economic value to their tokens to survive and thrive. Tokenomics therefore, is the process that helps a project to identify the way it can transfer the economic value of a token to its holder.
Crypto tokens have multiple use case. Keep on reading to get a sense of how you can design your own token.
Research and Development (R&D) is required to determine the optimal use case particularly for a Web3 project. This can make or break your business … the proverbial fly wheel that makes a business go round and round ….
Base layer blockchains (called Layer 1 blockchains) have coins to be used for services into their ecosystem. The Ethereum blockchain has its own cryptocurrency (or coin) called ETH. These base layer blockchains provide a foundation on top of which applications can be built by anyone. These applications can issue their own token – so think of tokens as a unit of value for a business that exists on a blockchain.