How to Increase a Poor Tokenomics Strategy and Build a Sustainable Project
Poor tokenomics are a primary reason for project failure, often stemming from unfair launches, excessive supply, or misaligned incentives. This guide details how to identify and correct these flaws using a structured launch approach with built-in fairness mechanisms. By focusing on sustainable distribution and ongoing holder rewards, you can increase your token's long-term viability and community trust.
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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.
What Constitutes a 'Poor Tokenomics' Strategy?
Identifying the root cause is the first step toward a solution.
A poor tokenomics strategy fails to create a sustainable economic model for a token, leading to rapid price decline, community distrust, and project abandonment. Common flaws include:
- Unfair Initial Distribution: A large portion of tokens (e.g., 40%+) allocated to the team or early investors with no vesting, creating immediate sell pressure upon launch.
- Excessive Total Supply: Launching with billions of tokens creates psychological and practical sell pressure, making meaningful price appreciation difficult.
- No Utility or Fee Mechanism: The token has no purpose beyond speculation and generates no revenue for its creators or treasury.
- Misaligned Incentives: The project's success is not directly tied to the token's health, encouraging founders to 'rug pull' or abandon ship.
- High Operational Costs: Spending significant capital on website development and marketing before establishing a token economy.
These issues are prevalent on platforms that focus solely on the launch event without providing tools for long-term sustainability.
Correcting Poor Tokenomics: Fair Launch vs. Traditional Launch
A structural shift in the launch process creates better outcomes.
The core of increasing a poor tokenomics strategy is shifting from an extractive model to an aligned, fair-launch model. Here’s how the approaches differ:
| Feature | Poor Tokenomics / Traditional Launch | Fair Launch Solution (via Spawned) |
|---|---|---|
| Initial Supply | Often 1 Billion+ tokens, creating instant dilution. | Starts small (e.g., 1M tokens) via a bonding curve, allowing organic price discovery. |
| Creator Revenue | None at launch; relies on team selling their allocation. | 0.30% fee on every trade from day one, aligning creator success with trading volume. |
| Holder Incentives | None; holders are purely speculating. | 0.30% of every trade is distributed to all holders automatically, rewarding loyalty. |
| Post-Launch Model | Project often ends or migrates, leaving early buyers behind. | Graduates to Token-2022 program with a 1% perpetual fee funding ongoing development. |
| Setup Costs | High: $29-$99/month for website builders, plus dev costs. | AI website builder included, eliminating a major recurring cost and saving ~$350+/year. |
This model directly addresses the flaws of poor tokenomics by embedding sustainable economics from the start.
Practical Steps to Increase Your Tokenomics Strategy
A clear, actionable path from a weak plan to a strong one.
If you're planning a new token or recognizing flaws in an existing plan, follow these steps to build a stronger foundation:
- Audit Your Current Plan: List your token's total supply, allocation percentages, and any planned fees. Identify where value leaks or misalignment exists.
- Adopt a Fair Launch Framework: Use a platform designed for fairness. Launch with a low, fixed initial supply on a bonding curve to prevent pre-sale dumps and whale dominance.
- Embed Revenue & Rewards: Structure your token so that 0.30% of every trade goes to you as the creator, and a matching 0.30% is distributed to all token holders. This creates two powerful, aligned incentives.
- Plan for Longevity: Design your token with a graduation path. After your initial fair launch, use the Token-2022 standard to implement a 1% transfer fee that funds a permanent project treasury for marketing, development, and liquidity.
- Minimize Overhead: Use the integrated AI tools to build your project's website and branding in minutes, redirecting the saved funds ($29-$99/month) into your token's liquidity or community rewards.
This process transforms a speculative asset into a project with a built-in economic engine.
How the 0.30% Holder Reward Fixes Poor Incentives
A major flaw in poor tokenomics is offering holders no reason to stay beyond price speculation. The ongoing holder reward mechanism directly solves this by:
- Creating Constant Buy Pressure: The rewards are distributed in the token itself, encouraging holders to keep their tokens staked in their wallet to accumulate more.
- Reducing Volatility: Loyal holders are less likely to sell during minor price dips if they are earning a yield simply by holding.
- Decentralizing Ownership: The mechanism automatically distributes tokens to all holders, preventing excessive concentration.
- Aligning Community & Creator: Both parties benefit from healthy, sustained trading volume. If volume is $100,000 in a day, $300 is distributed to holders and $300 goes to the creator.
This turns a token from a 'pump and dump' vehicle into a productive asset with inherent staking-like benefits, no complex staking interface required.
- Generates passive income for holders
- Incentivizes long-term holding over quick flipping
- Strengthens community cohesion
- Built-in from launch, no extra setup needed
The Real Cost of Poor Planning vs. a Structured Launch
Many creators with poor tokenomics strategies waste capital before their token even launches. A typical scenario involves:
- Website/Builder: $29 - $99 per month ($348 - $1,188 per year).
- Smart Contract Dev: $2,000 - $10,000+ for a custom, audited contract.
- Marketing & Graphics: $500 - $5,000+.
This is often funded by the creator's pocket or a pre-sale, creating pressure to recoup costs immediately via a token dump.
A structured launch on Spawned flips this model:
- Launch Cost: 0.1 SOL (approx. $20).
- Website Cost: $0 (AI builder included).
- Initial Revenue: Begins instantly with the 0.30% trade fee.
- Capital Allocation: The thousands saved can be used to provide initial liquidity or fund community initiatives, not cover basic overhead.
This efficient start allows the project to grow from a position of strength, not financial desperation. For specific niches like gaming tokens, this approach is detailed in our guides on how to create a gaming token on Solana and how to launch a gaming token on Solana.
Verdict: The Most Effective Way to Increase Poor Tokenomics
Sustainable economics must be foundational, not an afterthought.
To genuinely increase a poor tokenomics strategy, you must move beyond superficial fixes and adopt a launch framework that bakes sustainability, alignment, and fairness into the token's DNA.
Platforms that offer 'free' launches often do so by extracting value elsewhere, leading to the classic poor tokenomics outcomes. The solution is a model with clear, transparent fees that work for everyone: a small 0.30% for the creator, an equal 0.30% reward for holders, and a path to a 1% perpetual fee for the project's future.
By starting with a low supply on a bonding curve, including essential tools like the website builder, and funding the project through sustainable fees tied to usage, you transform your token from a liability into a viable, long-term economy. The goal isn't just to launch; it's to launch with a structure designed to last.
Ready to Launch with Strong Tokenomics?
Don't let poor tokenomics doom your project before it starts. The tools to build a fair, sustainable, and rewarding token are available now.
Launch your token with embedded creator fees, automatic holder rewards, and a full AI-powered website for just 0.1 SOL.
This approach has already saved creators thousands in upfront costs and established healthier project economies from day one. Move from planning to execution with a framework designed for success.
Start your fair launch now and build the tokenomics your community deserves.
Related Topics
Frequently Asked Questions
Directly modifying the supply or rules of a live token on-chain is typically impossible. However, you can 'migrate' to a new, properly structured token. This involves launching a new V2 token with corrected economics (fair distribution, holder rewards) and offering a swap for V1 holders. Transparency and clear communication with your existing community are critical for this process to work.
The 0% fee model is misleading. Platforms without explicit fees often have hidden costs or make money by front-running trades or taking a portion of the initial liquidity. A transparent 0.30% fee is a sustainable business model that aligns the creator's success with the token's health. It funds ongoing development and is far lower than the 20-40% that creators often take in pre-sales with poor tokenomics.
The reward is distributed automatically and pro-rata to every wallet holding the token at the time of a trade. If you hold 1% of the total supply, you receive 1% of the 0.30% reward pool from that transaction. No staking, claiming, or extra steps are required. The tokens are sent directly to your wallet, incentivizing passive holding.
After the token reaches a predetermined market cap on the bonding curve (e.g., $50k), it 'graduates' to a traditional liquidity pool (like Raydium). At this point, you can enable the Token-2022 extension, which introduces a 1% perpetual fee on all transfers. This fee goes to a designated treasury wallet to fund long-term project expenses, ensuring sustainability beyond the initial launch phase.
Absolutely. The fair launch and sustainable fee model are foundational for any token type. For gaming tokens, these mechanics can fund tournament prizes, development, or NFT mints. We have detailed guides for different blockchains, including [how to create a gaming token on Ethereum](/use-cases/token/how-to-create-gaming-token-on-ethereum) and [how to create a gaming token on Base](/use-cases/token/how-to-create-gaming-token-on-base), which apply the same core tokenomics principles.
Launching on Spawned costs 0.1 SOL (~$20) and includes the website. A comparable launch elsewhere might be 'free,' but you'd then pay $29-$99/month for a website builder like Squarespace or Wix. Within 4 months, you've already spent more than the Spawned launch fee. Over a year, you save $350-$1,200, which can instead be added to your token's liquidity pool.
Yes, it mitigates whale dominance. A bonding curve starts the price very low and increases it as more tokens are bought. This makes it exponentially more expensive for a single buyer to purchase a huge percentage of the initial supply at the lowest price, promoting a more distributed and fair initial ownership spread compared to a pre-sale or instant liquidity pool launch.
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