Token Mechanics for Ecosystem Growth
The Foundation of Sustainable Web3 Economies
Effective tokenomics includes mechanisms for bootstrapping and user acquisition that vary based on your business model:
For B2C protocols (like DeFi applications):
- Reward liquidity providers who contribute digital assets to your Total Value Locked (TVL)
- Create incentives for individual users to participate in the ecosystem
For launchpads:
- Implement reputation mechanisms to reward supporters
- Allocate ownership based on higher reputation levels
For B2B engagements (such as Layer 1/Layer 2 platforms):
- Target applications building on your platform rather than individual users
- Develop contract-based rewards tied to specific milestones (acquiring X protocols, attracting X users)
- Focus less on airdrops and more on business agreements with token incentives
Your distribution strategy should align with your business model, whether you're building a protocol for direct interaction or creating a foundation for others to build upon.
title: Token Mechanics for Ecosystem Growth description: Design token mechanisms for B2C, B2B, and launchpad business models updated: 2025-07-31 authors: [nicolasarnedo] icon: BookOpen
Effective tokenomics includes mechanisms for bootstrapping and user acquisition that vary based on your business model:
For B2C protocols (like DeFi applications):
- Reward liquidity providers who contribute digital assets to your Total Value Locked (TVL)
- Create incentives for individual users to participate in the ecosystem
For launchpads:
- Implement reputation mechanisms to reward supporters
- Allocate ownership based on higher reputation levels
For B2B engagements (such as Layer 1/Layer 2 platforms):
- Target applications building on your platform rather than individual users
- Develop contract-based rewards tied to specific milestones (acquiring X protocols, attracting X users)
- Focus less on airdrops and more on business agreements with token incentives
Your distribution strategy should align with your business model, whether you're building a protocol for direct interaction or creating a foundation for others to build upon.
Is this guide helpful?