How We Do it

In the discovery stage, we work to determine the particular characteristics of the business model or ecosystem and why a token is needed in the first place. This is crucial because each ecosystem has a primary objective. The systems, incentives and mechanisms are then created to coordinate the users of the ecosystem.

It is possible to create an ecosystem without a token. Thus, a token should only exist because there is a reason to exist. Should a token exist, we will focus on the value the token accrues and understand how the token facilitate transaction in the system.

When we design systems, we make high-level design choices including, governance structures, the (mathematical) token model and its parameters. These need to be optimised for stakeholders’ incentives and the long-term sustainability of the associated ecosystem in order to avoid value leakage.

Using the economics design framework as a guiding principle, we design the ecosystem parameters using the relevant variables. Some variables might be crucial, some less so.

Whilst it is difficult to test the design with empirical data until the design is out, it is possible to test the design based on conservative assumptions and basic modelling. Things like economic modelling, financial modelling and token modelling are included to test the robustness of the design.

Usually in this stage, the finer details of economics design come to light. The design phase describes the relationship between users, and the test phase defines the amount of transaction and token distribution in the model.

Deploy comprises of working with the development team to sketch out the technical architecture and to translate the business model into process flow. Then, the model can be codified into smart contracts. As projects have their own in-house development team, we assist the developers in the deployment.

The beauty of economics is that it is a social science. Whilst the design is built on first principles, the ecosystem changes, the users change and the necessary incentives should also change. Technology allows for data and transaction to be more transparent, which allows us to have more visibility of the system and understand the robustness of the mechanisms in place.

As we can measure and track the success of the design, we can also measure and suggest what needs to be changed, to help the protocol be sustainable.

With our capabilities, your business model will be designed to match your goals and market needs to optimize efficiency in operating the economy.

We are looking forward to partnering with you, blockchain projects. Let’s create a better decentralised world and bring more value to users.