See ya tomorrow on
(humbly speaking) one of the nicest Token2049 side workshops, focused on scaling AI startups
Together with PhDs from Cambridge University, we will explore how to:
- Launch and scale real-world AI systems
- Raise funds and actually close the round
- Design tokens that grow with your project
- Avoid the rookie mistakes that sink most startups
Coinvesting, DIFC
April 29 | 11:00–14:00
➡️ ➡️ ➡️ ➡️
https://lu.ma/scalingstartups
(humbly speaking) one of the nicest Token2049 side workshops, focused on scaling AI startups
Together with PhDs from Cambridge University, we will explore how to:
- Launch and scale real-world AI systems
- Raise funds and actually close the round
- Design tokens that grow with your project
- Avoid the rookie mistakes that sink most startups
Coinvesting, DIFC
April 29 | 11:00–14:00
https://lu.ma/scalingstartups
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Simplicity Group Alpha
See ya tomorrow on (humbly speaking) one of the nicest Token2049 side workshops, focused on scaling AI startups Together with PhDs from Cambridge University, we will explore how to: - Launch and scale real-world AI systems - Raise funds and actually close…
Dubai frens, missing tomorrow’s event = automatic red flag
We see everything
We see everything
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How much revenue should go to buybacks vs. the business itself?
For one of our clients, we break it down like this:
- Revenue from non-transaction sources stays with the company
- Up to 50% of transaction fee revenue goes to buybacks, if there’s enough income from other sources
If there’s not?
We cover the shortfall using TX fees first. Then, 50% of the remaining TX fee capital is used for buybacks.
The buyback share is calculated based on the original TX fee revenue using internal formulas.
For one of our clients, we break it down like this:
- Revenue from non-transaction sources stays with the company
- Up to 50% of transaction fee revenue goes to buybacks, if there’s enough income from other sources
If there’s not?
We cover the shortfall using TX fees first. Then, 50% of the remaining TX fee capital is used for buybacks.
The buyback share is calculated based on the original TX fee revenue using internal formulas.
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For one client, we built a custom calculator from scratch
It shows exactly how emissions behave based on different inputs:
-how many tokens go out per user,
-how fast rewards dry up,
-when the model becomes straight-up unprofitable,
etc.
It’s color-coded, visual, and brutally clear.
The kind of thing that helps both the team and investors understand the mechanics in under 5 minutes.
And they can keep using it even post-launch:
Just plug in real data,
tweak the levers,
and see what happens if they increase or cut back mining.
This is the kind of work we do at Simplicity
It shows exactly how emissions behave based on different inputs:
-how many tokens go out per user,
-how fast rewards dry up,
-when the model becomes straight-up unprofitable,
etc.
It’s color-coded, visual, and brutally clear.
The kind of thing that helps both the team and investors understand the mechanics in under 5 minutes.
And they can keep using it even post-launch:
Just plug in real data,
tweak the levers,
and see what happens if they increase or cut back mining.
This is the kind of work we do at Simplicity
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Hope you’re building sustainable tokenomics and no rugs
But wait, you haven’t called us yet
https://calendly.com/enquiries-simplicity/tokenomics
But wait, you haven’t called us yet
https://calendly.com/enquiries-simplicity/tokenomics
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One of our clients raised $10M in equity.
The VC got:
- 33% of the company
- A token warrant for 33% of the insider allocation (the tranche reserved for VCs, team, advisors, not total supply)
The warrant gave them the option to buy those tokens for $1
not market value, just a nominal price for tax purposes. So basically free.
We modelled other options, as a bonus, too:
→ Let the VC buy those same tokens at a discount
30%, 50%, 80%, up to the project.
At 50%, the project raises an extra $5.85M → total token raise: $32.75M
→ Let them buy at full token price, but drop the token valuation to $50M instead of $90M
This bumps the token raise to $33.4M
Things we said no to:
- Giving 33% of the entire token supply because the VC got 33% equity.
- Letting the VC push token valuation down to $30M.
That kind of mismatch with listing FDV (expected $100M–$120M) breaks credibility and investor trust.
This is what professional equity + token warrant structuring looks like
The VC got:
- 33% of the company
- A token warrant for 33% of the insider allocation (the tranche reserved for VCs, team, advisors, not total supply)
The warrant gave them the option to buy those tokens for $1
not market value, just a nominal price for tax purposes. So basically free.
We modelled other options, as a bonus, too:
→ Let the VC buy those same tokens at a discount
30%, 50%, 80%, up to the project.
At 50%, the project raises an extra $5.85M → total token raise: $32.75M
→ Let them buy at full token price, but drop the token valuation to $50M instead of $90M
This bumps the token raise to $33.4M
Things we said no to:
- Giving 33% of the entire token supply because the VC got 33% equity.
- Letting the VC push token valuation down to $30M.
That kind of mismatch with listing FDV (expected $100M–$120M) breaks credibility and investor trust.
This is what professional equity + token warrant structuring looks like
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Media is too big
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Last week, our Co-Founder Alex Fatuliaj broke down how to align your token supply and emissions with user growth.
This is exactly what founders need to keep in mind when designing emissions, valuations, and broader token models.
(drop an extra reaction if that Paint presentation made things click)
This is exactly what founders need to keep in mind when designing emissions, valuations, and broader token models.
(drop an extra reaction if that Paint presentation made things click)
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Three teams tried to build their tokenomics in-house. They ended up burning $135K and months of work.
We broke down what went wrong and what we had to fix:
https://x.com/SimplicityWeb3/status/1919669145433427994
We broke down what went wrong and what we had to fix:
https://x.com/SimplicityWeb3/status/1919669145433427994
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The fundamental baseline for thinking about fundraising tranches in tokenomics
* Each investor wants to buy as many tokens as possible for as cheap as possible, wants to liquidate them as quickly as possible, and wants to not have other investors liquidate their tokens first.
* You, as the project, want to make sure that each investor is happy with their tranche, that you don’t give too much allocation to investors, that the overall sell pressure doesn’t come quicker than you can handle, and that fundraise enough capital.
* Each investor wants to buy as many tokens as possible for as cheap as possible, wants to liquidate them as quickly as possible, and wants to not have other investors liquidate their tokens first.
* You, as the project, want to make sure that each investor is happy with their tranche, that you don’t give too much allocation to investors, that the overall sell pressure doesn’t come quicker than you can handle, and that fundraise enough capital.
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