Phase 4: Token Economics & Smart Contract Configuration

Token economics and smart contract configuration are critical to ensuring a functional, fair, and sustainable tokenized ecosystem. Token economics defines how the token works—its supply, distribution, incentives, and utility—ensuring that it supports the project’s goals and appeals to investors.

Smart contract configuration ensures that the token behaves exactly as intended. A well-coded smart contract increases transparency, reduces operational risks, and enforces rules without intermediaries.

Together, token economics and smart contract design create the core structure that governs the token’s value, functionality, and trustworthiness.

In this phase, you will define the core characteristics that shape how the token operates within both legal and technical frameworks. This includes selecting the type of token—such as equity, debt, or revenue-sharing—to align with your project's purpose and investor expectations. You will also need to define the token’s yield type and size, specifying whether it offers fixed income, profit participation, or other financial benefits. These choices directly impact how value is delivered to token holders and how the offering is perceived in the market.

Additionally, you must clearly indicate the rights granted to token holders, such as voting power, access to dividends, or revenue entitlements. These rights must be reflected in the token parameters recorded on the blockchain, which are enforced through the smart contract. This technical setup ensures consistency between the legal terms and automated token behavior, strengthening the project's credibility, transparency, and investor trust.