Beyond the Spreadsheet: The Real Art of Tokenomics in 2025
- Austin Ritter
- Apr 8
- 3 min read
Tokenomics Is Not Math; It's People: Why Founders Get It Wrong
It's too easy in the Web3 whirlwind to get bogged down in the minutiae. Whitepapers, code auditors, market caps—you know, the drill. But one that all too often gets whittled down into numbers on a page is significant: tokenomics.
Most founders approach tokenomics as if it's a complex spreadsheet. They use supply, distribution, and vesting schedules. It's a numbers exercise. And while numbers are important, they're only a subset of the larger context.
The Misconception that Tokenomics Is Math
Understandably, this would happen. We're in a data-oriented world, and numbers are concrete. However, comparing tokenomics with calculations only disregards the underlying goal: the practice of incentive design.
Consider this: a token isn't just a digital asset; it's a tool for aligning the interests of all players. It's about creating a system where users, investors, developers, and the wider community all work towards a common goal. This requires an understanding of human behavior, not just strict monetary modeling.
Tokenomics Is All About Incentive Design and Behavior Loops
Tokenomics is all about the design of the incentives that will produce the behavior that you desire. The design of the feedback mechanisms creates participation, contribution, and long-term involvement. It's the design of the setting in which all involved have a stake if the project succeeds.
It entails asking questions such as:
What actions would we want to promote?
How should valuable contributions be rewarded?
How can we ensure the system will last as long as possible?
How do we get all the levers in sync?
These questions transcend spreadsheets by a long shot. They call for a profound vision for your future, product, and community. And if AI-powered tools based on tokenomics enter the marketplace in 2025 and predict what people will do, the human touch—understanding what motivates people—is still the determining factor.
Common Pitfalls
One of the most significant faults we witness is the founders' overly heavy priority on the first-round token distribution and under-representation of the ongoing incentives. For instance, while they might have a generous investors' vesting schedule, they often forget how to engage active users and builders. This can lead to a lack of sustained interest and participation in the project.
Another problem is that it's done in a vacuum. You must consider the larger ecosystem and how people will use your token with other platforms and projects. In today's age of multiple blockchains, interoperability is critical.
A Mentorship-First Approach
That's why Denarii Labs advocates a mentorship-first approach. We work closely with founders, helping them navigate the intricacies of these issues and advising them on creating economically sensible but behaviorally intelligent token economies.
It's all about seeing through the spreadsheet and understanding that tokenomics is a mechanism for building a healthy system. It's creating a system where people are all encouraged to contribute, participate, and build with one another.
It's All About People
Ultimately, it's all about people. It's about what motivates them, how they collaborate, and how you can create a system that benefits everyone. It's not just about creating a token; it's about fostering a community.
So, the next time you look at tokenomics, remember it's more than just numbers. It's design, incentives, and human beings. It's building a healthy and sustainable economy that will last.
Avoid making your tokenomics a dry series of numbers. Cultivate an environment with the right incentives and a healthy beating heart.
Our Denarii Labs accelerators are intensive programs designed to help founders refine their tokenomics and bring their vision to life. We provide access to a network of experienced mentors, resources, and support, allowing founders to focus on what matters a people-first, not merely math, token economy.
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