Your Tokenomics Are Failing. Here's How to Fix Them.
A poor tokenomics strategy kills projects before they start. It leads to rapid sell-offs, zero community trust, and a dead token. This guide shows crypto creators the exact steps to diagnose and fix flawed tokenomics using a Solana launchpad designed for sustainable growth.
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The Problem
Traditional solutions are complex, time-consuming, and often require technical expertise.
The Solution
Spawned provides an AI-powered platform that makes building fast, simple, and accessible to everyone.
Verdict: You Need Sustainable Economics, Not a Quick Pump
Stop building on a broken foundation.
Launching with poor tokenomics is the fastest way to fail. The standard 'pump and dump' model offers 0% creator revenue and no incentives for holders to stay. The verdict is clear: you must build a token with built-in value capture and rewards from day one.
Platforms like pump.fun prioritize rapid launches over sustainability, leaving creators with nothing after the initial surge. In contrast, a launchpad with a 0.30% fee per trade directly funds the creator, and a matching 0.30% reward distributed to holders aligns everyone's interests. This model turns traders into long-term supporters.
Your fix starts by choosing a launchpad that bakes sustainability into the token's core mechanics.
Why Most Tokenomics Strategies Fail Immediately
Poor tokenomics isn't just about high inflation; it's a fundamental design flaw that destroys trust. The most common failure points are:
- No Value Capture for Creators: A 0% fee model means you earn nothing from trading activity. Once the initial liquidity is gone, you have no funds for development, marketing, or community rewards. Your project runs on fumes.
- No Incentive to Hold: If token holders see no benefit to keeping their tokens, they sell at the first sign of profit. This creates relentless sell pressure that crushes your price chart.
- Concentrated Supply & Dumps: Allocating too much to the team or early investors without proper vesting leads to massive, predictable dumps that scare away new buyers.
- Zero Post-Launch Plan: Many launchpads focus only on the creation event. What happens when you graduate to a full DEX? Without a plan for perpetual fees (like the 1% enabled by Solana's Token-2022 program), you lose your funding stream.
These aren't abstract issues. They are measurable problems that lead to a dead project within weeks.
Tokenomics Comparison: Spawned vs. pump.fun
The numbers don't lie. One model funds your project; the other doesn't.
Let's compare the economic models. The choice of launchpad dictates your token's inherent strengths or weaknesses.
| Feature | Spawned (Solana) | pump.fun (Solana) |
|---|---|---|
| Creator Revenue per Trade | 0.30% | 0% |
| Holder Rewards per Trade | 0.30% distributed to holders | 0% |
| Post-Graduation Fees | 1% perpetual via Token-2022 | Not standard; requires custom setup |
| Built-in Website/AI Tools | Included (saves $29-99/month) | Not provided |
| Launch Fee | 0.1 SOL (~$20) | ~$30 in SOL |
The Result:
- With Spawned: From trade #1, you earn 0.30% to fund operations, and holders earn 0.30% to reward loyalty. This creates a positive feedback loop. After graduating from the launchpad, the Token-2022 standard locks in a 1% fee forever, ensuring project longevity.
- With pump.fun: You earn $0 from ongoing trading. Holders get $0 in rewards. The only incentive is to sell early. This model is designed for short-term speculation, not long-term projects.
The data shows that sustainable tokenomics require built-in value distribution.
4 Steps to Fix a Poor Tokenomics Strategy
If you're planning a launch or have a struggling token, follow these concrete steps.
Step 1: Audit Your Current Plan Ask: Where does the value go? Map out your total supply, allocations, and fee structure. If more than 30-40% is allocated to non-community entities (team, investors) without multi-year vesting, you have a dump risk. If you have no mechanism to earn from trading or reward holders, you lack sustainability.
Step 2: Integrate Automatic Value Flows Adopt a launchpad that handles this for you. A 0.30% creator fee and a 0.30% holder reward are not just features; they are core economic policies. They automate fairness and align incentives from the moment trading begins.
Step 3: Plan for the Long Term with Token-2022 Your launchpad phase is temporary. Ensure your launchpad supports a smooth graduation to Solana's Token-2022 program, which allows for enforceable transfer fees. Lock in a 1% fee at this stage to guarantee perpetual funding for development, marketing, and treasury.
Step 4: Reallocate Saved Resources to Utility Using a launchpad with a built-in AI website builder saves you $29-99 every month on web hosting and tools. Don't waste that savings. Direct those funds into building actual token utility—like funding a game's development, creating NFT staking rewards, or financing community airdrops. Learn about airdrops.
The Tangible Benefits of Fixed Tokenomics
Better tokenomics translates directly into cash flow and stability.
What does fixing your tokenomics actually get you? Here are real, measurable outcomes.
- Steady Development Budget: With a 0.30% creator fee on a token doing $100,000 in daily volume, you earn $300 per day. That's $9,000 per month to pay developers, run ads, and fund the treasury.
- Holder Loyalty & Reduced Sell Pressure: A 0.30% reward to holders means a wallet with $1,000 in tokens earns $3 daily from trading volume. This makes holding more profitable than quick flipping, stabilizing your price.
- Professional Presence at Zero Cost: The included AI website builder gives you a marketing hub without the monthly subscription fee, projecting legitimacy that attracts more serious investors.
- Future-Proof Revenue: The 1% perpetual fee via Token-2022 is a business model. Even if daily volume drops to $10,000, you still secure $100 per day indefinitely to maintain the project.
How to Choose the Right Launchpad to Fix Tokenomics
Not all launchpads are built to solve poor tokenomics. Use this checklist to make your decision.
✅ MUST-HAVE FEATURES:
- Automated Creator Fees: A minimum of 0.20-0.30% revenue share from every trade.
- Automated Holder Rewards: A matching system to distribute fees back to the community.
- Token-2022 Migration Path: A clear, supported process to graduate your token and enable perpetual fees.
- Low Upfront Cost: Launch fees under 0.2 SOL (~$40) to preserve capital for liquidity.
❌ RED FLAGS TO AVOID:
- Promotes "0% fees" as a benefit (this only benefits day-traders, not you).
- No clear plan for what happens after the initial launch phase.
- Requires expensive additional tools (like website builders) that drain your budget.
By selecting a launchpad with the right features, you aren't just launching a token—you're installing a sustainable economic engine. Compare launchpads to see how they stack up on these critical points.
Stop Planning for Failure. Build Sustainable Tokenomics Now.
You can see the problem with poor tokenomics. The solution is a platform designed to prevent them. Spawned provides the economic framework—0.30% for you, 0.30% for holders, a path to 1% perpetual fees—and the AI tools to build your brand, all for a 0.1 SOL launch fee.
Don't launch another token destined to fail from day one. Launch with tokenomics that build wealth for you and your community.
Ready to fix your tokenomics? Start your launch now.
Related Topics
Frequently Asked Questions
It is extremely difficult and often requires a full token migration or relaunch, which can damage trust. The best approach is to audit your current token, communicate a clear upgrade plan to your community, and use a launchpad that supports migrating to a new, improved token contract with proper fees and rewards. Prevention is far more effective than a cure.
No. A small, transparent fee is standard across all financial markets. Traders expect it. The key is what the fee provides. A 0.30% fee that funds project development and rewards holders directly adds value to the token itself, making it more attractive to hold. This often increases long-term volume from committed holders, offsetting any minor impact from short-term traders.
On a platform like Spawned, the 0.30% holder reward is distributed pro-rata based on the number of tokens each holder has in their wallet. It is typically distributed in the native token automatically and continuously as trades occur. This creates a real yield for holding, similar to staking rewards, but without requiring users to lock their tokens.
Token-2022 is an upgraded token program on Solana. Its most important feature for creators is the ability to enforce a 'transfer fee' on every token transaction, forever. This allows you to set a perpetual fee (e.g., 1%) that is irrevocably baked into the token's smart contract after you graduate from the launchpad. It guarantees a long-term revenue stream independent of any single platform.
Absolutely. In fact, they are more critical. Gaming tokens need sustained value to fund development, reward players, and create in-game economies. A model with creator revenue ensures you can pay developers, while holder rewards can be tied to in-game staking or achievements. [Learn how to create a gaming token on Solana](/use-cases/token/how-to-create-gaming-token-on-solana) with sustainable economics.
It directly preserves capital. Building a professional website typically costs $29 to $99 per month. By providing this tool for free, the launchpad saves you that ongoing expense. You can then reinvest that money into your token's utility—like providing more liquidity, funding a developer, or creating a larger community airdrop—which strengthens your entire economic model.
The biggest mistake is thinking only about the launch day and not about day 30, 100, or 365. They focus on a low launch cost and ignore the need for automated, sustainable revenue and holder incentives. This leads to a scenario where the creator has no funds to continue building, and the community has no reason to hold, resulting in a rapid decline.
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