# Design tokenomics

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Your tokenomics define how tokens are allocated, distributed, and unlocked over time. Tally helps you finalize these decisions before announcing your sale.
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### Typical allocations

| Category             | Typical % | Purpose                           |
| -------------------- | --------- | --------------------------------- |
| Public sale          | 5-10%     | Broad distribution, capital raise |
| Team                 | 15-20%    | Core contributor incentives       |
| Investors            | 10-20%    | Early backers                     |
| Community/airdrops   | 5-15%     | Retroactive rewards, growth       |
| Treasury             | 20-40%    | Ongoing operations, grants        |
| Ecosystem incentives | 10-20%    | Staking rewards, liquidity mining |

#### Recent examples

**MegaETH:**

* 5% public sale
* Remainder across team, investors, ecosystem

**Monad:**

* 7.5% public sale
* 3.3% airdrop
* Remainder across team, investors, treasury

**Plasma:**

* 10% public sale
* Remainder undisclosed

### Vesting schedules

Tokens for team, investors, and sometimes public buyers should vest over time.

#### Why vesting matters

* **Aligns incentives** — Long-term commitment from stakeholders
* **Reduces sell pressure** — Prevents immediate dumping
* **Signals confidence** — Team tokens locked = skin in the game
* **Regulatory expectations** — Increasingly expected by regulators and institutions

#### Typical schedules

| Stakeholder | Cliff       | Vesting period | Total lock |
| ----------- | ----------- | -------------- | ---------- |
| Team        | 12 months   | 36-48 months   | 4 years    |
| Investors   | 6-12 months | 18-24 months   | 2-3 years  |
| Public sale | 0-12 months | 0-12 months    | Varies     |
| Advisors    | 6 months    | 24 months      | 2.5 years  |

#### Public sale lockups

Optional but increasingly common:

* **Instant unlock** — Tokens available immediately after sale
* **Short lockup** — 1-6 months, reduces immediate sell pressure
* **Incentivized lockup** — Bonus allocation for accepting longer lock (MegaETH offered this for U.S. accredited investors)

### Token utility

Define what your token actually does. Tokens without clear utility face regulatory scrutiny and holder skepticism.

#### Common utility types

* **Governance** — Vote on protocol decisions, parameter changes, treasury allocation
* **Staking** — Lock tokens to earn rewards, secure the network, or access features
* **Access** — Required to use certain protocol features
* **Fee discounts** — Reduced fees for token holders
* **Revenue share** — Portion of protocol revenue distributed to stakers

#### Utility considerations

* Utility should exist from day one or have a clear activation timeline
* Purely speculative tokens face regulatory risk
* Document utility clearly in your token disclosures

### Documentation requirements

#### Token disclosure document

* Total supply and allocation breakdown
* Vesting schedules for all categories
* Token utility and use cases
* Risk factors
* Use of proceeds

#### Visual tokenomics

* Pie chart of allocation
* Vesting unlock schedule chart
* Clear, simple graphics for marketing

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### Common mistakes

**Excessive team allocation.** >25% raises red flags with community and investors.

**Short vesting.** Team tokens unlocking in <2 years signals short-term thinking.

**Vague utility.** "Governance" without specifics isn't enough. Define what token holders actually control.

**Misaligned incentives.** If insiders can exit before product milestones, incentives are broken.

**Undocumented changes.** Any changes to tokenomics post-announcement destroy trust. Lock in your decisions.
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