How to Solve Poor Tokenomics Techniques and Build a Sustainable Token
Poor tokenomics is the primary reason most new crypto projects fail within months. This guide shows you how to solve common tokenomics mistakes with a structured approach that prioritizes fair distribution, sustainable rewards, and long-term holder value. Using Spawned's built-in tools, you can avoid the pitfalls that sink 80% of new tokens and create a foundation for genuine growth.
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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.
The Solution to Poor Tokenomics
Stop building on broken foundations. Here's the definitive approach.
The verdict is clear: solving poor tokenomics requires moving beyond the 'pump and dump' launchpad model. Platforms that charge zero fees for creators create a fundamental misalignment—creators have no incentive to build long-term value after the initial launch. Spawned solves this by building sustainable economics into the token's DNA. With a 0.30% fee per trade going to the creator and another 0.30% automatically distributed to holders, every transaction directly funds the project's growth and rewards its community. This creates a positive feedback loop absent in models with poor tokenomics.
For long-term success, use a platform that enforces good practices. Compare launchpad models to see how fee structures impact project longevity.
3 Most Common Poor Tokenomics Techniques (And How to Fix Them)
These techniques are responsible for the rapid failure of most new tokens. Identifying them is the first step toward building something lasting.
- Mistake 1: Zero Creator Revenue. Many launchpads promote a 0% fee model. This seems attractive but is disastrous. Once the initial liquidity is raised, creators have no ongoing income to fund development, marketing, or community management. The project stagnates and dies. Fix: Implement a small, sustainable fee. Spawned uses a 0.30% fee on every trade, providing a continuous revenue stream to fund the project's roadmap.
- Mistake 2: No Holder Incentives. Tokens with no utility or rewards become mere speculative assets. Holders have no reason to stay through volatility. Fix: Build rewards into the transaction mechanism. Spawned automatically distributes 0.30% of every trade to existing token holders, encouraging long-term holding and participation.
- Mistake 3: Centralized Supply & Unclear Vesting. When founders control too much of the supply without a transparent unlock schedule, it destroys trust. Sudden large sells (dumps) are inevitable. Fix: Use transparent launch tools. While Spawned gives creators control, it encourages public documentation of vesting schedules via the included AI website builder, where you can clearly post your tokenomics plan.
Poor Tokenomics vs. Spawned's Structured Approach
| Aspect | Poor Tokenomics (Common Model) | Spawned's Solution |
|---|---|---|
| Creator Funding | 0% fees after launch. No budget for development. | 0.30% fee on every trade. Continuous funding for updates, marketing, and support. |
| Holder Value | Pure speculation. No rewards or utility. | 0.30% reward on every trade distributed to holders. Built-in AI website provides immediate utility. |
| Long-Term Model | Project often abandoned after initial pump. | Token-2022 program ensures 1% fee capability after graduation for perpetual sustainability. |
| Launch Cost | Can be low, but you get what you pay for. | 0.1 SOL (~$20) includes the launchpad and AI website builder (saving $29-99/month). |
| Outcome | High failure rate (>80%). Short-term hype. | Foundation for long-term growth and community trust. |
This comparison shows that solving poor tokenomics isn't about spending more; it's about structuring value flows correctly from the start.
Step-by-Step: How to Solve Poor Tokenomics on Spawned
Follow these concrete steps to launch a token with robust economics on Solana.
Case Study: Solving Poor Tokenomics for a Gaming Token
Consider a creator wanting to launch a token for a new Solana-based game. The poor tokenomics approach would be to launch a meme coin with no link to the game's economy, hoping hype carries it.
The solved approach on Spawned looks different: The creator launches with the standard 0.30%/0.30% model. The 0.30% creator fee is directed to a treasury that funds game development and tournament prizes. The 0.30% holder rewards give players a reason to hold the token beyond in-game purchases. The AI website serves as the game's official portal, with updates, leaderboards, and a connection to the token.
This creates a tangible link between token value and project development. It turns a speculative asset into a stake in the game's ecosystem. This method applies whether you're creating a gaming token on Solana or other chains.
The Critical Role of Sustainable Fees
A 0% fee model is not a feature; it's a critical flaw in token design. It assumes creators will work for free indefinitely or profit solely from their own token holdings, which leads to sell pressure. A small, predictable fee like 0.30% aligns incentives.
It means that if your token does $1,000,000 in weekly volume, you generate $3,000 for the project treasury. That's $12,000 a month to pay for servers, hire a community manager, or run ads. This sustainable income is what allows a project to evolve from a launch into a lasting venture. The Token-2022 upgrade path to a 1% fee future-proofs this model further. This is the opposite of poor tokenomics—it's engineered for survival and growth.
Build a Token That Lasts
Ready to move beyond the mistakes that kill projects?
Poor tokenomics techniques set your project up for failure. You can solve them by choosing a foundation designed for sustainability from the first transaction.
Spawned provides the tools to launch with fair distribution, automatic holder rewards, and a continuous funding mechanism—all for a 0.1 SOL launch cost. The included AI website builder gives your token immediate utility and a home, saving you ongoing expenses.
Stop planning for a pump. Start building for permanence. Launch your token on Spawned today and solve poor tokenomics before your first trade happens.
Related Topics
Frequently Asked Questions
The most telling sign is a complete lack of ongoing revenue or utility for the creator. If a token launch model has 0% fees, the creator's only incentive is to sell their own allocation quickly. This creates immediate sell pressure and no budget for future development, dooming the project from the start. Sustainable tokenomics, like Spawned's 0.30% creator fee, fund the project's future.
On Spawned, every trade of your token automatically triggers a 0.30% fee that is distributed proportionally to all current token holders. This happens on-chain, in real-time. If you hold 1% of the total supply, you receive 1% of that 0.30% reward pool. This built-in mechanism encourages holding, reduces volatility from rapid selling, and directly rewards your most committed community members.
No, it's an investment in sustainability. A 'free' launch often means poor tokenomics: no creator fees, no holder rewards, and no utility. The $20 cost on Spawned includes the AI website builder, which alone saves $29-99 per month. More importantly, it gives you the economic model (0.30%/0.30% fees) that funds your project's growth. You're paying for long-term viability, not just a token deployment.
The core 0.30% creator and 0.30% holder reward fees are set at launch on Spawned. This provides consistency and trust for your holders. However, the platform is built for graduation to Solana's Token-2022 program. Once you graduate your token, you gain the ability to implement more advanced features, including the potential for a perpetual 1% fee structure, giving you greater control for long-term sustainability.
It provides the economic engine for your game's ecosystem. The 0.30% creator fee can fund prize pools, development, and marketing. The 0.30% holder reward gives players an extra benefit for holding your in-game currency. This creates a stronger link between playing the game and holding the token, moving beyond pure speculation. For a detailed guide, see our page on [how to launch a gaming token on Solana](/use-cases/token/how-to-launch-gaming-token-on-solana).
Transparency and incentive alignment. The fee structure is public. If a creator collects fees but doesn't deliver, the community will see this and lose trust, killing volume and the fee stream itself. The model incentivizes creators to use the fees to build value, which increases trading volume, which in turn increases their fees. It's a system that rewards active development.
No. Spawned is designed for creators, not just developers. The token launch with the 0.30%/0.30% fee model is a configured process. The AI website builder uses simple prompts to generate your site. You can launch a token with sustainable economics and a professional web presence without writing a single line of code, which is a major advantage over bare-bones launchpads that offer no utility.
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