"The challenge with Token Distribution is to create efficient distribution mechanisms that would put the tokens in the hands of people willing to produce long-term work for the network. Your role, as a community leader, is to create a healthy community that can thrive in the long term, and the first step to accomplish this goal is to decide on what percentage of the supply should go in the treasury, to the stakeholders, as a retroactive airdrop, as a vested treasury, etc.."

"But there are still two major problems for creators today: Ownership and Collaboration."

"The path that seems the most promising for creators is exit to community."

"Creating a Social Token is the easy part. What's more complicated, however, is to get it accepted by a community"

"The answer is: having strong Token economics for their project. We call Tokenomics (Token + Economics) all the things that enable participants to contributing positively enabled by strong token design."

"Social tokens have shown their efficiency on incentivizing individuals to share their skills with others."

"Creators should gather a strong community toward a joint project."

"A singer can gather a large audience, but to turn this audience into a community, they need to have a broader project that requires collaboration."

"1 - Token design: What key factors should Creators take into account before creating the Token?"

"The first question that should come to mind when creating a Token should be ""What will be the total initial supply?"" or, in other words, ""How many tokens should I create?"""

"First of all, when creating a Token, there are two models, with both pros/cons, that you should be aware of."

"The Fixed supply model - It's a model where you define the number of tokens you want to create beforehand (for example, 10M tokens) and receive them directly on a wallet."

"The Bonding curve model - Anyone has to buy the Token to create it. Its price increases as the Supply or distribution of the Token do. The more tokens have been distributed, the higher the price."

"On the other hand, when someone sells a Token, it will be burnt (destroyed), decrease the Supply, and lower the Token price.."

"There are many advantages to creating a token on a bonding curve. It guarantees Liquidity, allows a limitless Supply, reduces the volatility of the Token, and reduces the risks of hacks."

"nless you're an expert and know what you're doing, we recommend creating a Token on a Fixed Supply"

"What's more important when considering creating a token is to think about the relative amount of tokens (i.e. what percentage of the total Supply are we talking about)."

"More than the total supply, while extremely important, you also have to think about the relative amount of token (i.e the percentage) when taking decision."

"The price of the Token is also part of the Token Design and will be decided when community leaders will create a Liquidity pool."

"2 - Token Distribution: How should a creator distribute the token to incentivize more people to help the project grow?"

"Thinking about how to incentivize them to continue building, and motivate some more people to join the community."

"There are two main ways to allocate Tokens to community members when creating a decentralized community: Bounties and budget allocations."

"Setting up bounties will serve for one-off missions. It can be extremely useful to attract more people to your community. Bounty hunters will usually participate very flexibly on an ad-hoc basis. They're ready to rent their time in exchange for Tokens but won't be involved in the vision and the day-to-day operations."

"The second way to distribute tokens is to develop Guilds, or working groups, in charge of specific missions within the community. By creating these working groups, community leaders will allocate funds to specifics teams and organize the community more thoughtfully."

"having enough treasury to reward all the active community members is extremely important."

"In specific communities, owning a token bestows a right that results in product usage, a governance action, a given contribution, voting, or direct access to a product or market"

"As the last piece of advice on token distribution, it's essential, specifically at the beginning, to consider any person to whom you give token an investor"

"With a very centralized community at the beginning (mostly the creator of the token or a small core team), each person that will receive the token will (potentially) have governance power and can have a huge influence over the future decisions of the community."

"3 - Financial aspects: How creators can manage the stability of the token so people are still motivated to collaborate?"

"At its creation, a Social Token created on a fixed supply has no inherent value, as no one has put money in it yet."

"Concretely, pooling liquidity means creating a Pool where people can make their Token and another one (bond) available for anyone wanting to buy it. When the Liquidity Pool is created, users can add the exact value of two Token (ex. $500 of your Token + $500 of collateral, aka any other token) in a Pool and earn trading fees proportional to their share of the total Liquidity."

"Liquidity providers facilitate trading by willing to buy or sell a particular asset at any given time, thereby providing Liquidity and enabling traders to trade without waiting for another buyer or seller to show up."

"There are many ways to limit the volatility of a token."

"The first one is to vest a portion of the supply. Concretely, vesting a token means locking a certain amount of tokens over a certain period as a commitment to hold the Token."

"It is also possible to bond the Token with a stable coin in a Liquidity Pool to ensure price stability. Indeed, when creating a liquidity pool, while it's not the only factor that makes the price fluctuate, the Token with whom you're bonding your Token can have an impact on your token price."

"Thirdly, you can try to stabilize the price of the Token by creating Liquidity Mining Programs."

"When putting your money at the bank, you agree that bankers will play with your money in exchange for a specific interest rate. When pooling Liquidity on a decentralized exchange, you agree to automatically buy or sell a particular asset at any given time to help the project grow in exchange for a reward."

"Creating Liquidity Mining Programs, and therefore having more Liquidity, will increase transaction depth. Transaction depth is the degree of market price stability. The greater the depth, the less significant the impact of several transactions will be on the price."