We modelled multiple airdrop scenarios (with different vesting) to see what would happen to our client's token price, ceteris paribus.

It was concluded that unlocking their entire airdrop on TGE was best for mid-term price performance, based on:

- users @ launch
- airdrop allocation
- tokenomics
- launch strategy
- CEXs & DEXs

Whilst cliffs and shorter vesting allowed for higher pumps on launch, it made it harder to uphold price for the following months, given the starting conditions.

What is the purpose of tokens?

Token utilities are the practical applications of the token's purposes. At Simplicity, we've identified three - decentralisation, control, and data transfer.

1. Decentralization
In systems of pure distributed governance, you need a mechanism to keep everyone aligned - a la a carrot and a stick. Moreover, you need some way to transfer value between participants in a transparent way. Launch a token.

2. Sovereignty
In more centralised systems, you face counterparty risk of using someone else's medium of exchange. Don't be like the €; set your own policies in your own country. Launch a token.

3. Data Transfer
Cut costs, increase liquidity, and add security to your data transferring by putting it on-chain. Launch a token (potentially a non-fungible one).

Full article: https://thoughts.simplicitygroup.xyz/p/token-utilities

Why you need modelling

Simulating your economy, fundamentally, saves you time and money. Being able to visualise cause and effect, stress-test your assumptions, find ideal parameters, and plan for unlikely (but possible) black swan events, allows you to mitigate severe problems or avoid them altogether post launch.

Full article: https://thoughts.simplicitygroup.xyz/p/modelling

Burning tokens is good for price charts, but often bad for long-term ecosystem health.

Whilst it can boost token prices by attracting speculative buyers and "reducing supply", it creates a free-rider problem, whereby every token holder is rewarded for simply owning tokens whether they add value to the ecosystem or not.

This value leakage can be costly in a super competitive market.

The solution: redistribute to real users.

8 other reasons why burning isn't good: https://thoughts.simplicitygroup.xyz/p/token-utilities-burning

Valuing your company is much easier than people make it out to be.

Let's say you're raising pre-seed at $20M val. Just ask yourself, "Would I buy my whole company for $20M if someone was selling it to me?"

Your brain goes from: "Haha I'm the guy, this is the best idea ever, and it's worth TRILLIONS! $20M is CHEAP!!!1!!1"

To: "Ok so I'll be paying $20,000,000 for a Canva presentation, a loose business plan, and a 40 line codebase."

Do that until it makes sense.

P.S. This is for equity. Here's our thoughts on tokens: https://thoughts.simplicitygroup.xyz/p/how-to-value-tokens

Staking for rewards should not be the token’s main or only utility (unless you're using it as slashable collateral to disincentivise malicious behaviour).

It can attract users massively, but the question is, What kind of users are being attracted?

Don’t rely on staking rewards to boost your DAU as it's a false sense of achievement and success which can disappear in an instant.

Wonder how much impact a token can have on market dynamics?

Opensea had ~70% market share, then Blur came along. Blur organised an airdrop, but in order to qualify for it, people had to not only list NFTs on Blur, but also delist from Opensea.

The chart speaks for itself.

A token can be a very powerful tool.

Token modeling is not about predicting prices. It’s about understanding your economy on a deeper level:

→ Reveal hidden vulnerabilities
→ Prevent catastrophic failures
→ Avoid risks of liquidity issues

Don't be like Luna & UST.

Full article: https://thoughts.simplicitygroup.xyz/p/modelling

Some ongoing IDOs; ending on the date stated.

Hats Finance - $HAT
DOJOGPU - $DOAI
The Ready Games - $RDYX
Mogul Official - $MOGUL
Waterfall Dag - $WATER

Here's how to get every VC to like you at the VC x Founder events:

0. Spot a VC on their own (e.g. grabbing coffee). Ask them if they're a VC.
1. Name their frustration.
2. Ask what narratives they like.
3. Ask what they like most about those narratives.
4.a. If your project does not fit, acknowledge and go to point 7.
4.b. If your project fits in with their thesis, showcase industry knowledge.
5. Propose you pitch them.
6. Pitch fast. Continue conversation.
7. At the end, ask if they know anyone else interested.

Example:
1. "I feel bad for you, you probably had so many shit projects swarm you."
2. "So what narratives do you invest into?"
3. "Oh nice, what do you think is the best and worst thing about __ ?"
4.a. "Interesting. We sadly don't fit that narrative, but it was great to chat."
4.b. "Interesting. I actually think that if we solve __ we can attract a lot of institutional capital..."
5. "We're actually working on that very thing. I can give you a quick explainer if you want."
6. *20-30 seconds pitch maximum. Problem *already identified from conversation* > Solution > Why you're the one > Traction
7. "Great to chat. Do you happen to know anyone else I should speak to?"

Remember to have this conversation in an inquisitive and playful way.

VCs are ramping up investments again this week.

High level summary about DePIN.

The markets are experiencing significant rallies this week, with top performers emerging from various narratives. Are we back?

Are futures good for your token?

We dove into the price performance of 20 tokens over time to see how their futures listings impacted the price. Comparing to Bitcoin in particular, we found only 18% were up after three months. Interesting.

Full article: https://thoughts.simplicitygroup.xyz/p/futures

If you need the money, you wont get it.

If you want the money, in order to scale faster, you will get it.

If your ship is going down without VC capital then you probably have a bad ship.

Some major project launches happened this week, with ByBit listings dominating the market performance.

High level summary of modelling token economies.

Message us if you want to run your economy through a model to see if it actually makes sense 🫡

Top 5 ongoing IDOs this week, keep watch.