Tokenomics
This walkthrough demonstrates a complete token launch using Opals with specific numbers. Follow the mathematics to understand how capital flows, tokens distribute, and holders earn.
The Setup
Project: DeFi protocol raising capital for development Target raise: $200,000 (80 ETH at $2,500/ETH) Target FDV: $1,000,000 Total supply: 1,000,000,000 tokens (fixed, no inflation)
Allocation:
800,000,000 tokens (80%) � Patron Card holders
150,000,000 tokens (15%) � Liquidity pool
30,000,000 tokens (3%) � Team (4-year vesting)
20,000,000 tokens (2%) � Treasury operations
Card Sales: Three Rounds
Round 1 - Members Only (Membership Card required as Key)
Cards available: 2,000
Price per card: 0.008 ETH ($20)
Total raised: 16 ETH ($40,000)
Tokens per card: 100,000
Round 2 - Contributors (Contributor Card required as Key)
Cards available: 3,000
Price per card: 0.011 ETH ($27.50)
Total raised: 33 ETH ($82,500)
Tokens per card: 100,000
Round 3 - Public (No Key required)
Cards available: 3,000
Price per card: 0.0103 ETH ($25.75)
Total raised: 31 ETH ($77,500)
Tokens per card: 100,000
Total: 8,000 cards sold, 80 ETH raised ($200,000)
Each card represents 100,000 tokens that vest over 4 years. Early round supporters pay less per card, rewarding commitment and early belief.
Capital Split After Launch
Gross raise: 80 ETH Platform fees (4%): 3.2 ETH
Creator: 0.8 ETH (25%)
Protocol: 0.8 ETH (25%)
Platform referrer: 0.8 ETH (25%)
Order referrer: 0.8 ETH (25%)
Net to project: 76.8 ETH
80/20 Split:
To launcher (liquidity): 61.44 ETH (80%)
To treasury (operations): 15.36 ETH (20%)
The 20% treasury allocation provides immediate operational runway. The 80% liquidity allocation ensures deep, permanent liquidity.
Token Launch
When the 8,000 card threshold is reached, the Launcher executes automatically:
Liquidity pool creation:
ETH deposited: 61.44 ETH ($153,600)
Tokens deposited: 150,000,000 tokens
Initial price: 61.44 ETH / 150,000,000 tokens = 0.0000004096 ETH per token
In USD: $0.001024 per token
LP tokens: Locked permanently in claim contracts
Market cap at launch:
Circulating supply: ~150M tokens (in LP)
Price: $0.001024
Market cap: $153,600
Fully diluted valuation: $1,024,000
Close to target $1M FDV with slight premium due to rounding.
Diamond Hand Vesting Examples
All Patron Card holders receive 100,000 tokens vesting over 4 years (linear). Claiming early forfeits unvested tokens to remaining holders.
Alice - The Impatient (Year 1)
Vesting progress: 25%
Tokens vested: 25,000
Tokens forfeited: 75,000
Token price: $0.002 (2x from launch)
Value received: $50
Value forfeited: $150
Bob - The Patient (Year 4)
Vesting progress: 100%
Tokens from allocation: 100,000
Bonus from forfeited: ~75,000 (if half claim early)
Total tokens: 175,000
Token price: $0.01 (10x from launch)
Value received: $1,750
The Mathematics: If 4,000 card holders (50%) claim at year 1:
Each forfeits: 75,000 tokens
Total forfeited: 300,000,000 tokens
Remaining holders: 4,000
Bonus per holder: 300M / 4,000 = 75,000 tokens
Diamond hands earn 75% more tokens simply by waiting. Combined with price appreciation, the patient earn exponentially more.
Price Discovery and Trading
Month 1 - Initial volatility:
Launch price: $0.001024
Speculators buy: Price rises to $0.002
Some early claimers sell: Price stabilizes at $0.0015
Trading volume: $500k monthly
Fees generated: $5,000 (1% of volume)
Distributed to PatronPower holders
Month 6 - Product traction:
Protocol launches beta
Community grows, usage increases
Price: $0.005 (5x)
Trading volume: $2M monthly
Fees: $20,000
PatronPower holders earn: Proportional to locked LP
Year 2 - Market maturity:
Protocol achieves product-market fit
Price: $0.015 (15x from launch)
Trading volume: $10M monthly
Fees: $100,000 monthly
Sustainable yield for long-term holders
Investor Return Scenarios
Scenario A - Round 1 Member, Immediate Claim:
Investment: 0.008 ETH ($20)
Claim at launch: 0 tokens (0% vested)
Forfeit: 100,000 tokens
Loss: $20
Never claim immediately. Wait at minimum for partial vesting.
Scenario B - Round 1 Member, Year 1 Claim:
Investment: 0.008 ETH ($20)
Tokens received: 25,000
Token price: $0.002
Value: $50
ROI: 150%
Forfeited upside: 75,000 tokens worth $150
Scenario C - Round 1 Member, Year 4 Diamond Hands:
Investment: 0.008 ETH ($20)
Tokens received: 175,000 (100k + 75k bonus)
Token price: $0.01
Value: $1,750
ROI: 8,650%
Scenario D - Round 3 Public, Year 4 Diamond Hands:
Investment: 0.0103 ETH ($25.75)
Tokens received: 175,000
Token price: $0.01
Value: $1,750
ROI: 6,696%
Round 1 members paid less for same allocation, demonstrating stepped pricing benefits.
Fee Distribution Mechanics
With 61.44 ETH locked in liquidity forever, PatronPower holders earn from trading fees.
PatronPower calculation:
Patron Cards (permanent lock): 10x multiplier
Total locked value: 61.44 ETH
Total PatronPower: 614.4 ETH-equivalent
Monthly fee distribution (assuming $10M volume):
Fees generated: $100,000
Your PatronPower: 6.144 (from 1 card)
Your share: 6.144 / 614.4 = 1%
Your monthly earnings: $1,000
Annual yield: $12,000 on $20-$26 investment
These fees come from real trading activity, not token inflation. Sustainable as long as the protocol generates volume.
Token Price Drivers
Positive pressure:
Protocol adoption increasing
Trading fees attract LP providers
Diamond hands reduce circulating supply
Bull market sentiment
Negative pressure:
Early claimers selling vested tokens
Broader market downturn
Protocol usage declining
Competitive products launching
The permanent liquidity lock prevents the worst-case scenario (rug pull) while allowing natural price discovery.
Align Every Participant
For early members: Pay less ($20), wait longer, earn more (175k tokens at $0.01 = $1,750)
For late participants: Pay market rate ($26), same allocation if patient, immediate liquidity to exit
For the project: 20% ($40k) operational capital immediately, 80% permanent liquidity ensures tradability forever
For long-term holders: Fee distribution creates perpetual income, diamond vesting multiplies tokens, fixed supply prevents dilution.
The mathematics align every participant toward the same outcome: long-term protocol success.
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