How to Optimize and Fix Poor Tokenomics
Poor tokenomics can sink a project before it starts. This guide provides actionable solutions for crypto creators to fix common issues like unfair distribution, lack of utility, and unsustainable revenue models. Learn how to structure your token for long-term success using modern tools.
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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 Makes Tokenomics 'Poor'?
Identifying the problem is the first step toward a solution.
Poor tokenomics refers to a token's economic design that fails to align incentives, ensure sustainability, or provide value. The most frequent problems creators face include:
- Unfair Initial Distribution: Launching with too much supply held by the creator or a small group, creating immediate sell pressure and distrust.
- Zero Holder Rewards: Tokens that offer no ongoing benefit to holders, making them purely speculative assets.
- Creator Revenue Conflicts: Projects that take high fees (e.g., 1% or more) from every trade, penalizing the community that supports them. Conversely, taking 0% fees, like some platforms, leaves the creator with no funding for development.
- No Post-Launch Plan: Tokens that graduate from a launchpad with no mechanism to fund ongoing marketing, development, or community initiatives.
- Missing Basic Infrastructure: Launching a token without a professional website creates a credibility gap, and paying $29-99/month for one drains resources.
These issues create a cycle where early holders get burned, the community loses faith, and the project struggles to fund its own growth.
The Recommended Framework for Healthy Tokenomics
A balanced approach that funds the creator, rewards the holder, and plans for the future.
For creators looking to build a sustainable project, we recommend a balanced model that serves the community, funds development, and plans for the future. Here is a specific framework:
- Creator Revenue: Take a 0.30% fee on every trade. This is sustainable, provides continuous funding for development, and is far lower than the 1%+ taken by many problematic launches.
- Holder Rewards: Implement a 0.30% reward distributed to all token holders on every transaction. This directly rewards loyalty and long-term holding.
- Graduation & Perpetual Funding: Use the Token-2022 program to enable a 1% fee that activates after you graduate from the launchpad. This fee funds perpetual development, marketing, and community initiatives.
- Cost-Effective Launch: Launch with a 0.1 SOL fee (approx. $20), not a percentage of your raise. This keeps initial costs minimal.
- Built-In Professional Presence: Use the included AI website builder to create a project hub at no extra monthly cost, saving you the typical $29-99 'website tax'.
This model moves away from the 'pump and dump' zero-fee approach and the 'extract and exit' high-fee model, toward a community-aligned, sustainable economy.
How This Compares to Common Tokenomic Models
| Model | Creator Fee | Holder Incentive | Post-Launch Funding | Community Sentiment |
|---|---|---|---|---|
| 'Pump & Dump' (0% fee) | 0% | None | None | Initial hype, rapid collapse due to no funding. |
| 'Extract & Exit' (High fee) | 1%+ | None | Not structured | Hostile; community feels penalized on every trade. |
| Spawned Balanced Model | 0.30% | 0.30% reward | 1% via Token-2022 | Aligned; holders earn, creator builds sustainably. |
The 0% fee model, popularized by some platforms, leaves creators with no runway. The high-fee model kills momentum. The balanced 0.30%/0.30% split creates a positive-sum game where trading activity benefits both parties.
Step-by-Step: Optimizing Your Tokenomics on Spawned
A practical guide to implementing the solutions.
Follow these concrete steps to launch with optimized tokenomics.
- Plan Your Initial Supply: Decide on a total supply that allows for growth. A very low supply can lead to excessive price volatility. A very high supply can seem unattractive. Consider locking a portion of the creator allocation for future use.
- Set Your Fees: During the launch configuration, set your Creator Fee to 0.30% and enable the Holder Reward at 0.30%. This is configured directly in the token minting process.
- Enable Token-2022: Select the Token-2022 program option. This builds in the capability for the 1% perpetual fee that you can activate after you graduate and move your token to its own liquidity pool.
- Build Your Hub: Use the integrated AI builder to create your project website. Include your tokenomics, roadmap, and social links. This establishes immediate credibility without a monthly subscription.
- Launch and Communicate: Launch with the 0.1 SOL fee. Clearly communicate your tokenomics model to your community: "We take 0.30% to fund development, you earn 0.30% back for holding, and our future is secured with a 1% post-graduation fee."
- Execute Post-Graduation: Once your project grows, graduate and activate the Token-2022 1% fee mechanism to fund the next phase of development.
Beyond the Token: Solving the 'Website Tax'
Poor tokenomics isn't just about the token; it's about inefficient use of resources. A major drain for new creators is the cost of a basic web presence.
The Problem: After paying for design, hosting, and domain, creators often spend $29 to $99 per month just to have a website—funds that could go toward marketing or development.
The Spawned Solution: The platform includes an AI-powered website builder at no extra cost.
- Save Monthly Fees: Redirect the $29-99/month 'website tax' into community rewards or development.
- Launch Instantly: Have a professional site live at the same moment your token launches.
- Integrated Updates: Easily post announcements, track metrics, and host token-related content in one place.
This removes a significant operational cost and friction point, allowing creators to focus resources on the token and community.
- Eliminates $29-99 monthly recurring cost
- Provides instant credibility at launch
- Centralizes project information and updates
Ready to Launch with Optimized Tokenomics?
Don't let poor tokenomics limit your project's potential. The tools to build a fair, sustainable, and community-aligned token economy are available.
Start by planning your token's structure using the balanced 0.30%/0.30% model. Consider how the post-graduation 1% fee will fund your long-term goals.
When you're ready, you can create your token on Spawned with a 0.1 SOL launch fee and build your website in the same workflow. If you're building in the gaming space, see our specific guides for Solana gaming tokens and Ethereum gaming tokens.
Build a token designed to last.
Related Topics
Frequently Asked Questions
A 0.30% fee is modest compared to the 1% or higher fees common in problematic launches. It's a sustainable alternative to the 0% fee model that leaves projects unfunded. When paired with a 0.30% holder reward, traders see value in participating, as holding the token earns them a share of the trading activity. This creates a healthier ecosystem than a purely speculative, zero-fee token.
The Token-2022 program on Solana allows for advanced token features, including transfer fees. The 1% fee is a separate mechanism from the initial 0.30% creator fee. It is designed to be activated *after* your token graduates from the launchpad and moves to its own independent liquidity pool. This 1% fee provides a perpetual source of revenue for ongoing development, marketing, and community initiatives, solving the 'no funding after launch' problem.
Yes. There is no additional monthly subscription to use the AI website builder on Spawned. It is included as part of the platform. This directly addresses the 'website tax' problem, where creators often pay $29 to $99 per month for basic hosting and templates. The builder allows you to create a professional project hub at launch, saving those funds for more critical aspects of your project.
Core tokenomics like total supply and the basic fee/reward structure are typically immutable once the token is created on-chain. This is why careful planning upfront is critical. However, features like the Token-2022 1% transfer fee can be configured for activation at a future date. You cannot retroactively change a 0% creator fee to a positive fee, which is why launching with a sustainable model like 0.30% from the start is important.
The holder reward is implemented at the smart contract level. On every token transfer (buy or sell), 0.30% of the transaction amount is automatically distributed proportionally to all current token holders. This happens instantly and on-chain. It means that simply holding the token in a compatible wallet generates a small, continuous reward from market activity, directly incentivizing long-term holding over short-term trading.
The specific 0.30%/0.30% fee/reward model and integrated AI builder are features of the Spawned platform built for Solana. However, the principles are universal. On other networks, you would need to find a launchpad or custom contract that enables similar transfer fee mechanics. The core idea—a small, fair creator fee combined with holder rewards—is a sound strategy for any chain. For chain-specific guidance, see our resources on [Ethereum gaming tokens](/use-cases/token/how-to-create-gaming-token-on-ethereum) and [Base gaming tokens](/use-cases/token/how-to-create-gaming-token-on-base).
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