Solve Poor Tokenomics Strategy: A Step-by-Step Guide for Creators
Poor tokenomics is the leading cause of project failure, often due to zero creator revenue, no holder incentives, and unsustainable fee structures. This guide provides a concrete framework to correct these issues, using a model with 0.30% creator fees, 0.30% holder rewards, and built-in post-launch sustainability. We'll show you how to implement this on Solana to build a token with long-term viability.
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The Problem
Traditional solutions are complex, time-consuming, and often require technical expertise.
The Solution
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Why Tokens with Poor Tokenomics Fail (The Hard Truth)
It's not about hype; it's about sustainable economics.
The most common tokenomics failure is a misalignment of incentives. A creator launches a token with 0% fees, believing it's 'fair' or more attractive. Without a revenue stream, the creator has no financial reason to continue marketing, developing, or supporting the community after the initial launch hype fades. Simultaneously, holders have no reason to stay invested if the token offers no utility or rewards, leading to rapid sell-offs. This creates a death spiral: no creator support → holder exit → liquidity vanishes → project dies. It's not a mystery; it's predictable economics. Platforms that promote zero-fee models are often setting projects up for this exact outcome, as they themselves may profit from other means like front-running or exit liquidity.
Poor Tokenomics vs. Sustainable Tokenomics: A Side-by-Side Look
Let's break down the critical differences between a flawed launch and a structured one.
The Flawed (Standard) Model:
- Creator Revenue: 0%. The creator works for free.
- Holder Incentives: None. Pure speculation.
- Post-Launch Model: Often non-existent. The token is abandoned on the launchpad.
- Website/Marketing: Separate cost ($29-$99/month) and effort.
- Result: High chance of rapid failure, community distrust.
The Sustainable (Fixed) Model:
- Creator Revenue: 0.30% fee on every trade. Creates ongoing project funding.
- Holder Rewards: 0.30% distributed to holders automatically. Incentivizes holding.
- Post-Launch Path: Graduates to Solana's Token-2022 program for 1% perpetual fees.
- Website/Marketing: AI website builder included at launch (saves $29-$99/month).
- Result: Aligned incentives, sustainable funding, professional presence.
How to Solve Poor Tokenomics in 4 Steps
Turn theory into action with this practical checklist.
Fixing tokenomics isn't abstract; it's a process. Here is how to implement a sustainable model on Solana.
- Acknowledge the Need for Fees: Decide that 0.30% per trade is a fair value for your ongoing work. This isn't greedy; it's the fuel for development, marketing, and community events. Without it, you are volunteering indefinitely.
- Commit to Holder Rewards: Allocate 0.30% of every trade to be distributed proportionally to token holders. This can be done automatically through the token's tax structure. It directly rewards loyalty and reduces sell pressure.
- Plan for the Future with Token-2022: From the start, structure your token with a path to graduate to Solana's Token-2022 standard. This allows you to implement more advanced features, like the 1% perpetual transfer fee that funds the project forever, independent of trading volume on any single platform. Learn about token standards.
- Launch with Full Stack Tools: Use a launchpad that includes the token mint, initial liquidity pairing, and an AI-powered website builder. This ensures you have a trading token and a professional hub for your community from minute one, all for the 0.1 SOL launch fee.
What Sustainable Tokenomics Looks Like in Real Numbers
Let's use a concrete example. You launch a gaming token called 'PLAY'. It reaches a modest $100,000 in daily trading volume.
- Daily Creator Revenue (0.30%): $100,000 * 0.003 = $300 per day.
- Daily Holder Rewards (0.30%): Another $300 per day distributed to everyone holding PLAY.
- Monthly Creator Revenue: ~$9,000. This funds game development, tournaments, and marketing.
- Monthly Holder Rewards: ~$9,000. Holders earn simply for participating.
Now, compare this to the 'zero fee' model. The creator earns $0. The holders earn $0. The only activity is speculative trading, which eventually stops. The PLAY model creates a circular economy where activity funds growth, which creates more activity. When the token graduates to its own Token-2022 program, a 1% transfer fee on a $50,000 NFT sale within its ecosystem would generate $500 for the project treasury, further decoupling funding from pure market volatility.
The Verdict: How to Permanently Solve Poor Tokenomics
The definitive approach to building a token that lasts.
Stop launching tokens designed to fail. The solution to poor tokenomics is to adopt a model that financially aligns the creator, the holders, and the project's future from the very first line of code. This means implementing a small, fair fee structure (0.30%/0.30%) that provides immediate, sustainable resources and rewards. It means using a launchpad built for this purpose, not one that incentivizes pump-and-dump behavior. For Solana creators, the most direct path is to use a platform like Spawned that bakes these sustainable economics into the launch process, includes vital tools like the website builder, and provides a clear upgrade path to Token-2022. The 0.1 SOL cost is not a fee; it's an investment in a structure that prevents the all-too-common collapse.
Ready to Launch a Token That Actually Works?
You now understand the flaws in common tokenomics and have a blueprint to fix them. The next step is execution. Don't waste time cobbling together separate tools or settling for a model that sets you up for failure.
Launch your token with built-in sustainable economics on Spawned. Get your 0.30% creator revenue, 0.30% holder rewards, a free AI-generated website, and a path to Token-2022—all starting at 0.1 SOL.
Launch Your Sustainable Token Now
Explore how to launch a gaming token on Solana for a specific niche example.
Related Topics
Frequently Asked Questions
Data and experience show the opposite. A small, transparent fee signals that the creator is serious and plans to build long-term. It funds the marketing and development that increase the token's value. A 0% fee often signals an exit scam or an abandoned project, which is a much larger deterrent. Buyers are attracted to sustainable ecosystems, not free tickets to a dead end.
The rewards are distributed automatically and proportionally. If the reward pool collects 100 tokens from a day's trades, and you hold 1% of the total supply, you receive 1 token. This process is typically handled by the smart contract at the time of each trade, crediting holders' wallets directly or making rewards claimable through a dashboard. It requires no manual effort from the creator after setup.
Token-2022 is an upgraded token standard on Solana that enables advanced features native to the token itself, like transfer fees. This is crucial because it allows your project to graduate from a launchpad and enforce a fee (e.g., 1%) on *all* transfers of your token, everywhere. This creates a perpetual, platform-independent revenue stream for your treasury, which is fundamental for long-term, sustainable development beyond the initial launch phase.
The core principles are universal, but the technical implementation differs. While you can code similar fee structures on Ethereum or Base, the costs (gas fees) and standard tools vary. Solana's low fees make small percentage models like 0.30% practical. For specific guides on other chains, see our resources on [how to create a gaming token on Ethereum](/use-cases/token/how-to-create-gaming-token-on-ethereum) or [how to create a gaming token on Base](/use-cases/token/how-to-create-gaming-token-on-base).
Yes, it is included at launch with no monthly subscription fee. Typically, a basic website builder or hosting service costs between $29 and $99 per month. By including it, the launchpad removes a significant recurring cost and operational hurdle, allowing creators to establish a professional web presence immediately without additional budget or technical steps.
This model is designed for sustainability at various scales. Even low volume generates *some* revenue and rewards, which is infinitely more than the zero from a flawed model. The included AI website provides a hub to build your community and increase volume. The path to Token-2022 also diversifies future revenue away from being 100% dependent on daily spot trading volume, adding resilience.
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