Tokenomics Audit: Simulate and Certify your Token Economy

Space and Time added Space and Tokens, formerly Cenit Finance, to the SXT product suite in August 2024. Space and Tokens is a cutting-edge tokenomics platform designed to help protocols optimize their token utilities and distribution strategies. With this integration, protocols can simulate tokenomics, better anticipate token performance and market risks, and build comprehensive analytics and dashboards around their token economy, all powered by SXT's verified onchain data. This content was originally published on the Cenit Finance website.

In the past, the focus was primarily on Smart Contract Audits, but today, Tokenomics Audit and stress-testing have become essential to understanding and mitigating the economic risks of a project. This not only ensures the project's sustainability but also reassures investors that the tokenomics are robust and not solely based on speculative demand. In this post, we'll cover everything you need to know to audit your tokenomics design and obtain a certification that showcases to your community the strength of your token economy.

To generate your tokenomics audit or simulations, follow these steps:

1. Create a token economy simulation on Space and Tokens Simulator

To start your tokenomics audit, create a token economy simulation using the Space and Tokens simulator. Begin by filling in the required details about your token, such as supply, distribution mechanisms, and utility within your ecosystem. The simulator's form-based interface makes this process straightforward.

Create your own in-depth tokenomics simulations and get valuable insights in less than 15 minutes with the Space and Tokens Simulator tool

2. Evaluate and optimize your tokenomics

With your simulation set up, the next step is to evaluate and optimize your tokenomics. Analyze the buying and selling pressures over time to see how your token performs under different market conditions.

This is crucial for identifying potential weaknesses and areas for improvement. Adjust your tokenomics design parameters iteratively until your model shows sustainability and resilience.

3. Publish your economy and introduce the bagde in your site

Once you’ve refined your tokenomics, it’s time to publish your economy and add the badge to your site. Sharing your simulation results publicly demonstrates transparency and builds trust within your community.

Download the badge from Space and Tokens and copy the URL. Integrate this badge into your site and link it to your simulation results.

This allows anyone to understand your economy and see firsthand the robustness of your tokenomics. Publicly showcasing this information not only highlights your commitment to transparency but also serves as a visual symbol of your project's credibility and security.

4. Simulated tokenomics vs tokenomics audit

Simulating your economy is a crucial first step in validating its robustness. However, without a team member experienced in tokenomics in-house, it’s advisable to seek third-party expertise to ensure your simulation is correctly configured and all aspects are accurately represented Space and Tokens offers a comprehensive setup configuration and tokenomics validation service. By working with our experts, you can be confident that your simulation is accurate and reliable.