Increase Poor Tokenomics: Techniques to Fix and Improve Your Token Model
Poor tokenomics can cripple a project's growth and community trust. This guide provides concrete, actionable techniques to diagnose, fix, and improve flawed token structures on Solana. We compare methods from simple burns to complex Token-2022 integrations, showing how to transition from a failing model to a sustainable one.
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The Problem
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What Makes Tokenomics 'Poor'?
Before you can fix a problem, you need to diagnose it correctly.
Poor tokenomics isn't just low price; it's a structural flaw that erodes long-term value. The most common failures include:
- Excessive & Unlocked Supply: A massive initial supply with minimal liquidity creates instant sell pressure. If a large portion is unlocked early to the team or investors, it signals a lack of long-term commitment.
- Zero Real Utility: The token serves no function beyond speculation. It isn't needed to access a service, participate in governance, or earn rewards.
- Misaligned Incentives: The economic model rewards short-term dumping over long-term holding. For example, high taxes that only benefit the creator discourage trading.
- No Value Accrual: There is no mechanism for the token to capture value from the project's growth or revenue.
A token with these issues will struggle to retain holders, attract liquidity, or build a committed community.
Techniques to Increase Poor Tokenomics: A Side-by-Side Look
Here’s a breakdown of common corrective techniques, their impact, and difficulty.
| Technique | How It Works | Potential Impact | Difficulty & Cost |
|---|---|---|---|
| Supply Burn | Permanently remove tokens from circulation by sending them to a dead wallet. | Reduces sell pressure, increases scarcity. Immediate price boost if significant. | Low. Only requires a transaction. Best for ~10-30% of supply. |
| Inject Utility | Add staking, governance, or access gating. Use tokens to pay for services in your ecosystem. | Creates buy-and-hold demand. Shifts narrative from speculation to utility. | Medium-High. Requires building and maintaining smart contracts or product features. |
| Revenue Sharing | Direct a portion of project fees (e.g., 0.30% trade fees) to token holders or a buyback fund. | Directly ties token value to project success. Creates sustainable yield. | Medium. Requires integrating a fee splitter or reward distributor. |
| Migrate & Upgrade | Move from a basic SPL token to the Token-2022 standard to enable native transfer fees, interest, or metadata. | Enables advanced economic features like perpetual creator fees (e.g., 1%) or holder interest. | High. Requires a migration event and community trust. |
| Strategic Buybacks | Use treasury funds to purchase tokens from the open market, often to burn or lock them. | Demonstrates team commitment, supports price floor, reduces circulating supply. | Medium. Requires capital and careful execution to avoid manipulation claims. |
A 5-Step Process to Fix Your Tokenomics
A systematic approach is more effective than piecemeal changes.
Follow this structured approach to turn your token model around.
- Audit & Communicate: Transparently analyze your token's current state. Publish a report detailing total supply, vesting schedules, and liquidity. Honesty rebuilds trust. Announce your intent to improve the model.
- Execute a Quick Win: Perform a verifiable token burn of a meaningful percentage (e.g., 10-25%). Do this in a single, visible transaction. This is a strong signal of change.
- Design New Utility: Decide on one core utility to add. For a gaming token, it could be staking for in-game assets. For a creator coin, it could be revenue sharing from sales. Keep the initial scope simple and achievable.
- Build & Integrate: Develop the smart contracts for your new utility feature. For revenue sharing or advanced features, consider if migrating to the Token-2022 standard is warranted for its native capabilities.
- Launch & Incentivize: Release the new feature. Consider a short-term incentive program, like doubled rewards for the first month, to drive adoption and liquidity provision.
Building Better Tokenomics from the Start on Spawned
The best way to 'increase poor tokenomics' is to avoid creating them. Spawned.com integrates sustainable economic principles directly into the launch process:
- Built-in Holder Rewards: Every trade on your token automatically distributes 0.30% to holders. This isn't a post-launch fix—it's active from block one, creating immediate utility and a reason to hold.
- Sustainable Creator Revenue: You earn 0.30% on every trade, aligning your success with the token's health. This is more sustainable than models with zero fees that encourage pump-and-dump behavior.
- Controlled Post-Graduation: When your token graduates from the launchpad, you can implement a 1% perpetual fee using the Token-2022 standard. This provides ongoing project funding without relying on initial supply sales.
- AI Website Builder Included: Using the built-in AI tool to create your project's hub saves $29-99/month, allowing you to allocate more resources to token utility and community building.
By launching here, you embed value-accrual mechanisms into your token's DNA, preventing many common poor tokenomics pitfalls. See how it works for gaming tokens.
Verdict: The Most Effective Path Forward
Correction is possible, but prevention is more efficient and builds stronger trust.
If you are actively managing a token with poor economics, start with a transparent audit and a significant supply burn to signal change. Immediately follow this by integrating a single, clear utility—staking with rewards or a simple revenue share is best.
For creators launching a new token, the most effective technique is prevention. Launching on a platform like Spawned.com that bakes holder rewards (0.30%) and sustainable creator fees into the contract ensures your token has positive, ongoing economics from its first trade. The marginal cost of 0.1 SOL (~$20) and the included AI website builder make this a foundational investment in your token's long-term health, far outweighing the cost of a corrective migration later.
Ready to Build Sustainable Tokenomics?
Turn your token's economics from a liability into its greatest asset.
Don't let poor tokenomics define your project's potential. Whether you're looking to correct an existing model or launch a new token with robust, holder-friendly economics from the start, the right tools make all the difference.
Launch your next token on Spawned.com. Embed automatic holder rewards, secure sustainable creator revenue, and access the Token-2022 standard for advanced features—all while saving on essential tools like your project website.
Start with a stronger foundation for 0.1 SOL.
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Frequently Asked Questions
Yes, but it requires community trust and concrete action. Successful fixes typically involve a transparent admission of the flaws, a verifiable token burn to reduce supply, and the introduction of a real utility feature like staking or revenue sharing. The process is harder than getting it right initially, but it is possible with consistent follow-through.
Introducing a reliable, automated value stream for holders. This is why Spawned.com's built-in 0.30% holder reward on every trade is so powerful. It transforms the token from a speculative asset into one that generates yield, creating a fundamental reason to buy and hold regardless of short-term price action.
It structures incentives correctly from the start. The creator earns 0.30% per trade (sustainable, not extractive), holders earn 0.30% (rewarding loyalty), and the post-graduation model uses Token-2022 for a 1% perpetual fee (funding development). This triad aligns all parties—creator, holder, and project treasury—towards the token's long-term success.
It's often the strongest signal, but it must be meaningful. Burning 1% of supply is a gimmick; burning 20%+ shows serious commitment. However, a burn alone is a one-time event. It must be paired with a plan for ongoing utility, or the positive effects will be temporary.
Token-2022 is an upgraded Solana token standard. It allows for native features like transfer fees (e.g., a perpetual 1% fee that funds the project) and interest-bearing tokens. This lets you build sophisticated economics directly into the token, moving beyond simple fixes to creating a fundamentally stronger asset. Spawned.com supports post-launch migration to this standard.
Start with one clear function. If you have a website or app, gate access to premium features behind token ownership. Set up a staking pool where users lock tokens to earn a new NFT or a share of fees. The key is to make the utility easy to understand and directly tied to your project's core activity. [See examples for gaming tokens](/use-cases/token/how-to-create-gaming-token-on-solana).
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