How Yen Carry Trade caused last weeks crash

Last week, stock markets suffered their largest loss in value since the 2020 COVID crash, with over $2.9Tn being wiped out on August 2nd.

Was Japan at fault for this financial turmoil?

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

One of our clients wanted to reward users who lock tokens for longer with exponentially greater rewards, but wasn't sure on the specifics.

After contriving the minimum and maximum reward quantities as a function of time, we built this custom formula where simply changing α from 0 to 1 makes the discount go from linear to exponential, giving the client freedom to adapt the rewards based on demand with ease.

Token economics isn't just vesting schedules and TGE unlocks.

Traditional token vesting is limiting.

🔐 100% token unlock at TGE (not into liquidity) = price collapse.
🔏 Predetermined token unlocks are a gamble.

How many tokens can we release onto the market?

→ Too few? Prices skyrocket unsustainably
→ Too many? Prices tank

We need a better way. Maybe KPI vestings are a necessity.

Full article

The markets have been indecisive in choosing a direction, although there have been a few significant drops this week.

"Community" is mostly a synonym for "exit liquidity". Is that a bad thing? No. Even community members see each other as exit liquidity, driving engagement to subconsciously pump their own bags.

Airdrops are the perfect examples of this.

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More big gainers this week from a surprisingly wide array of narratives.

Creating and launching a token is generally an 8 stage process:

1. Business & token overlap
2. Tokenomics
3. Backers
4. Legal audit
5. Development & SC audit
6. Marketing
7. Launch mechanics
8. Post launch

Read all the details here.

A lot of project social media accounts don't reflect the brand well enough. The posts either don't align with the thesis of a company, or they don't showcase what they practically should.

For example, one of our clients is an institutional project that isn't even considering retail as a target user. Yet half of their posts are like-baiting and generic: stuff you post for retail to like and comment.

Make sure your posts align with your brand, otherwise you create confusion externally and internally about who you are and what you're aiming to achieve.

Investments have significantly slowed down over the last two weeks. Despite this, AI-related projects continue to get some investment traction.

The 5 types of token value defined by Simplicity Group.

Full article

Whilst there are a plethora of factors that go into the tokenomics, a key to always remember is the valuation deltas between different investor rounds.

Key info: launchpads don't like a delta between the earliest round and theirs of more than 3x.

In our client example above, the Seed to Public delta is 2.5x, and we leveraged vestings and TGE unlocks to ensure the other investors are not put off.

🌟 Partnership Announcement 🌟

Simplicity is joining forces with Starter, a 100% onchain legacy pad with a new focus on Base, connecting entrepreneurs with visionaries.

This partnership ensures that projects launching on Starter will have easy access to pristine tokenomics services from yours truly, and our Base-focused clients have direct access to a top tier launchpad.

A lot of Web3 projects think they're innovating, but in reality they just act on the first idea that comes to mind, and then suffer from the sunk cost fallacy.

There are 3 sources for staking rewards. Whilst each has its pros and cons, we urge projects to not use staking as their main source of governance.

Full article

Due to a few delays we see some familiar faces in this week's upcoming IDOs.

Some sizeable dumps this week, especially in the memecoin sector.

A few major movers this week across all narratives even in the top 1000.

🌟 Partnership Announcement 🌟

Simplicity is joining forces with LKI, an award-winning marketing and design agency, specialised in growth hacking for over 250 clients.

This partnership allows us to introduce our clients to one of the best in the game directly, and provides LKI clients with discounted access to our services.

What better endorsement than Solana itself?

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