Tokenomics Template: Burning Mechanisms with Staking Rewards

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.

This template recreates a simple token economy where the protocol shares a percentage of their fees with the Stakers.

• The token utility is only the revenue coming from the fees and the amount of Stakers willing to come to stake will be determined by the APY of their investments.
• Given a certain hypothesis of what the markets considered to be a competitive APY, stakers will join or leave until an equilibrium is reached towards that levelof competitive APY.
• Agents that receive some allocation will be constantly selling a part of their tokens at different speeds.
• Part of the protocol fees are used to buyback and burn tokens

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Structure of the template

In the spreadsheet file, we will find multiple sheets that need to be completed. Every single sheet has their own instructions and guidelines at the top for convenience.

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The structure of the excel as follows:

Sheets for User Inputs, in yellow color: These sheets cover design parameters, hypotheses, and the vesting schedule that should be tested in the simulation. The parameters incorporated here are the ones that the end user will be able to change in the dashboard once the simulation is up and running.

Sheets for Internal simulation flows, in orange color: These sheets are the core of the modeling logic of your tokenomics design. Here we will define agents, their behavior, and the token flows between them.

‍Sheets for reporting, in red: Once the token economy has been defined and modeled, there will be some relevant resulting metrics that should be tracked in the dashboard. These values are not part of the computation of the simulation, but rather output KPIs extracted from the simulation results.‍

Sheets for dashboard, in blue: These sheets define the disposition of elements in the dashboard. With these sheets, you can define which hypothesis will the end-user of the dashboard be able to test, which graphs and metrics should be displayed, and in which order.

Sheets will contain the customized version of the economy according to your criteria and interest. Additionally, there are some special flows, agents, variables and actions that are common to every token economy and that are always included in every simulation without the need for the spreadsheet user to define them, like the token price, or the circulating supply. These will be explained in detail in each sheet.