How to Reduce Poor Tokenomics and Build a Sustainable Token
Poor tokenomics is the primary reason most new tokens fail within weeks. This guide outlines specific, actionable best practices to structure your token's economics for stability and growth. We focus on Solana-specific strategies that align creator incentives with long-term holder value.
Try It NowKey Benefits
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.
The Verdict on Fixing Poor Tokenomics
Sustainable fees beat zero fees every time for long-term success.
The most effective way to reduce poor tokenomics is to adopt a structure that balances initial launch mechanics with perpetual sustainability. Platforms that charge 0% creator fees often incentivize short-term, extractive behavior, leading to rapid abandonment. A better model embeds small, sustainable fees from the start—like the 0.30% per trade creator fee and 0.30% holder rewards on Spawned—which funds ongoing development and aligns the creator's success with the token's health. This, combined with a capped initial supply release and built-in utility, creates a foundation for longevity.
Where Most Tokenomics Plans Go Wrong
Creators often repeat the same critical errors. The first is allocating over 50-70% of the total supply to the initial liquidity pool or "team" allocation. This creates immediate sell pressure and signals a lack of long-term commitment. The second mistake is having no plan for ongoing revenue. If a creator earns nothing after launch (common on platforms with 0% fees), they have no incentive to continue building, marketing, or supporting the community. The token becomes abandoned. The third major error is launching without a clear utility or use case, making the token purely speculative and dependent on hype cycles that quickly fade.
5 Best Practices to Reduce Poor Tokenomics
Follow these concrete steps to build a robust token economic model.
- Control Initial Supply Release: Limit the initial circulating supply. A common practice is to launch with 10-20% of the total supply in the liquidity pool, locking or vesting the rest over months or years. This prevents immediate dilution.
- Budget for Longevity: Allocate a portion of the initial raise or supply (e.g., 5-10%) to a dedicated treasury for marketing, development, and community incentives. This war chest is crucial for post-launch momentum.
- Choose a Platform with Sustainable Fees: Opt for a launchpad that provides fair, ongoing creator revenue. For example, Spawned's 0.30% creator fee per trade generates continuous funding, unlike platforms with 0% fees that encourage pump-and-dump behavior.
- Incentivize Holding: Integrate mechanisms that reward long-term holders. This could be through the 0.30% holder rewards distributed on every trade, staking benefits, or exclusive access to future project features.
- Launch with More Than a Token: A token alone is not a project. Use an integrated AI website builder (saving $29-99/month) to launch with a professional hub for announcements, documentation, and community building from day one.
Spawned vs. Pump.fun: A Tokenomics Comparison
The platform you choose directly shapes your token's economic health.
| Feature | Pump.fun Model | Spawned.com Model | Impact on Tokenomics |
|---|---|---|---|
| Creator Fee | 0% | 0.30% per trade | Spawned: Creates sustainable revenue for ongoing work. Pump.fun: Incentivizes quick exit after initial pump. |
| Holder Rewards | Typically none | 0.30% per trade | Spawned: Actively rewards holding, reducing sell pressure. Pump.fun: No built-in holding incentive. |
| Post-Launch Path | Must "graduate" to Raydium | Graduates to Token-2022 with 1% fee | Spawned: Permanent 1% fee funds perpetual development. Pump.fun: No guaranteed future revenue stream. |
| Initial Cost | Bonding curve model | 0.1 SOL flat fee (~$20) | Spawned: Predictable, low-cost entry. Pump.fun: Cost varies with market cap. |
| Additional Tools | Token launch only | Built-in AI website builder | Spawned: Launches with a professional project site, adding immediate utility and legitimacy. |
The key difference is incentive alignment. Spawned's fee structure is designed for project longevity, while a 0% fee model often leads to poorer long-term tokenomics.
How to Implement Advanced Tokenomics with Token-2022
Token-2022 turns your token into a sustainable business model.
Spawned uses Solana's Token-2022 program, which allows for powerful, built-in economic features. Here’s how to use it effectively.
- Graduate for Permanent Fees: After your initial launch phase, graduate your token to the full Token-2022 standard on Spawned. This enables a permanent 1% transfer fee.
- Allocate Fee Revenue: Decide how this 1% fee will be distributed. A standard split is 50% to the project treasury for development and 50% to a buyback/burn or reward pool for holders.
- Communicate the Structure: Clearly explain this fee and its use to your community in your project documentation and on your website. Transparency builds trust in your long-term plan.
- Reinvest in the Project: Use the consistent revenue from the 0.30% trade fee and later the 1% transfer fee to fund updates, marketing pushes, and new features, creating a positive feedback loop of value creation.
Your Action Plan to Launch with Strong Tokenomics
Ready to launch? Follow this checklist.
- Define Utility: What does your token do? Is it for in-game assets, community governance, or access? Nail this first.
- Plan Your Supply: Decide on total supply (e.g., 1 billion) and allocate wisely: ≤20% initial liquidity, 5-10% treasury, the rest vested/community rewards.
- Choose Spawned: Select Spawned for its aligned fee model (0.30%/0.30%) and integrated website builder.
- Build Your Site: Use the AI builder to create your project hub before launch. Announce your clear tokenomics here.
- Launch & Engage: Launch with 0.1 SOL. Use the ongoing fee revenue to actively manage the community and develop your project's utility.
Build a Token That Lasts
Poor tokenomics is a choice, not a requirement. By selecting a platform designed for sustainability and following these best practices, you can create a token that supports your creative work for the long term.
Launch your token with strong, sustainable economics on Spawned. Start your launch now for just 0.1 SOL and get your AI-powered website included.
Explore more launch strategies: How to launch a gaming token on Solana | How to create a gaming token on Ethereum
Related Topics
Frequently Asked Questions
Initially, 0% fees might seem attractive, but they create a major long-term problem: the creator has no built-in revenue to continue working on the project. This often leads to abandonment. A small, sustainable fee like 0.30% provides continuous funding for development, marketing, and support, which is far more valuable to serious buyers looking for a project with staying power.
A strong starting point is to limit your initial circulating supply to 10-20% of the total. Allocate 5-10% to a project treasury for initial operations. The remaining supply (70-85%) should be locked in a vesting schedule for future community rewards, team (if applicable), and strategic reserves, releasing over 12-36 months. This prevents massive, sudden sell pressure.
On every trade of a token launched on Spawned, 0.30% of the trade value is automatically distributed as a reward to all existing token holders proportionally. This is built directly into the token's contract. It incentivizes people to hold the token to collect these micro-rewards, which helps stabilize the price by reducing constant selling.
A professional website establishes immediate legitimacy and is a core piece of utility. It's where you communicate your tokenomics, roadmap, and use case. Without it, your token is just a speculative contract address. The AI website builder on Spawned provides this critical asset at no extra monthly cost, strengthening your project's foundation from the start.
Graduation moves your token from the initial launch pool to a full Token-2022 standard liquidity pool. The key feature activated is the ability to set a **permanent transfer fee** (default is 1%). This fee generates perpetual revenue for the project, funding endless development and support, which is a cornerstone of sustainable tokenomics.
Core elements like total supply or the presence of fees (like the permanent 1% fee on Token-2022) are generally immutable once set. This is why planning is critical. Allocations of treasury funds and specific utility can evolve. Always document your initial plan clearly and communicate any strategic changes transparently to your community.
Ready to get started?
Join thousands of users who are already building with Spawned. Start your project today - no credit card required.