Now is the time to fix token design. We have the a huge opportunity to make tokens more viable and sustainable if we can propose better models to help clarify regulations and provide a clear framework for tokens to pass revenues to token holders. If token holders can only realize value through selling then we’ll continue to only have tokens where holders are adversarial rather than collectively aligned. The token design landscape has been shaped as much by legal fear as by good engineering (@flynn.eth). Now we have an opportunity to address that fear and advocate for a clear path forward. We must seize the opportunity. https://x.com/flynnjamm/status/2025595942360240211?s=46&t=LNZpH03544B952EdXOUs2w

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Top 10 Clanker Tokens by Market Cap. Good data point to show what tokens are popular on Farcaster. There's other data points too but I think this may be one of the most important things to track to see what types of tokens are valued by people on Farcaster, especially now that Clanker is part of Merkle. It's telling that 8/10 are project tokens or appcoins. I think that these types of tokens will continue to make up the majority of the Top 10 Clanker tokens by market cap. I want more traders for appcoins and project tokens like $CALNKER, $BNKR, $NOICE, $BRACKY, $FAIR, $i, $QR and $MACHINES. More traders would be healthy for the ecosystem if these are the kinds of tokens they're interested in trading. Many of these "traders" are often users of these apps. These apps having a token gives them a tool to create alignment between their users and the market value of their project via the associated token. This is a worthwhile area to cater to and cultivate. I'd love to see more trading volume on these tokens and other appcoins like $RIPS and $LIKES which we've helped incubate at @skycastle. Traders get a bad rap but they're an important part of crypto and markets. Speculators help with price discovery and they often help fund the innovation and experimentation. Trading is risky. Building a startup is risky. Every financial decision has an element of risk to it. Farcaster uniquely enables the social layer around tokens and other onchain assets like NFTs. The shift to focus more towards trading and financial markets makes sense but we shouldn't have to lose the social fabric that has made this place special. We can have both despite Merkle focusing more on the trading instead of social. Farcaster is special because of the people, projects and builders that are active on the network. I'm confident that will continue to be the case and I'm hopeful that we will grow the network more than ever over the coming months.

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This is a good model for token presales (pretty similar to the @partydao mechanics) Alternatively, I think we'll likely see some more presales where the presale allocation is sold via NFTs which then have the right to claim a token allocation at a later date. More teams would be better to set a date and conduct more of a roadshow to onboard users, communicate their plans, etc. Here's some things I think every team should do when handling a presale: - Minimum lockup time (30 days at least but ideally longer) - Set % of presale funds provisioned for liquidity - Very clear and consistent comms

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Tokens can enable the future that we all want but they do require good actors and good alignment. Nobody said it would be easy but tokens are a very powerful tool if leveraged thoughtfully.

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Super excited to see Coinlist go fully onchain with noncustodial wallets powered by @privy Excited to see quality projects launch tokens, find product market fit and eventually return onchain fees to token holders https://x.com/rargulati/status/1990449637329911878?s=46&t=LNZpH03544B952EdXOUs2w

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Launchpads using the token pairing model feel like they’re peaking right now. Everyone wants to spin up a token launchpad because it’s the current hot meta right now alongside perp DEXes and stablecoin infra. The token pairing model does create a nice flywheel for platform tokens (Zora, Virtual, etc.). But I don’t think it makes sense for every project to marry themselves to a platform token by launching as a paired LP with the platform token instead of using ETH or USDC. You’re effectively tying your entire project to another asset’s fate. On top of that, the pairing fragments liquidity and forces multi-hop trades, which means extra fees and more slippage for traders. This setup is great for the launchpads but not always great for the projects launching on them. If you pair with the platform token, your creator fees usually get paid out in that token, not in ETH or USDC. That’s a big risk for founders who rely on those fees to bootstrap their project. You’re accepting platform-token exposure whether you want it or not. One reason I’ve gotten more bullish on Clanker is that it’s a much more flexible, general purpose launchpad. It doesn’t force a token pairing with $CLANKER, and creators actually earn in ETH, arguably a better asset for most projects to receive fees in. I’m still a fan of Zora and Virtual. The token pairing model makes sense for them because they have clear verticals (Zora → creators; Virtual → agents). But now we’re seeing new launchpads like Noice and Fey adopt this same model without having as clear of a vertical that they're focusing on. They both have interesting mechanics and I like those teams but its less clear why I'd want to tether my project to their respective platform tokens. Token pairing creates reflexivity with the platform token. If the platform token goes up, everything paired with it gets a boost by getting more liquidity, higher prices. If the platform token goes down, every paired token gets dragged with it. Launching on a platform token essentially tethers your project to their price action. That can be great if you want to fully align with a platform and bet on its long-term success. But for most projects, I’d argue it adds unnecessary risk and complexity. Not every token needs or benefits from being tied at the hip to a platform token. Notably, the biggest launchpad (pump.fun) doesn't use this token pairing model but there's other mechanics at play with their bonding curve model and fee structure. This is a whole separate conversation since bonding curve-style launchpads haven't been as popular on Base. Still I couldn't write about launchpads without mentioning pump. Every token is different especially if you're trying to use a token to bootstrap a real product or app that hopes to generate revenue. There's a lot of things to consider based on what you're building and how a token fits into that. My thoughts will likely continue to shift and change around this but thought it was worth laying this out for anyone considering launching a token on a launchpad.

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happy for you guys @itsbasil @garrett and others! ☁️ 🏰 ☁️

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First Friday /skycastle chat really started off with a bang

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I heard there’s something interesting going on here @itsbasil

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There's some under-explored mechanisms on token launches and token distribution that I'm eager to see more of: - Allowlisted launches (large whitelist of wallets allowed to purchase) - Allocations instead of airdrops - Progammatic claims or vesting - Programmatic functions tied to market cap, liqudity, FDV, etc - Two token system where projects take in USDC and levearage a floating token for rewards, marketing/incentives, etc I think a lot of these can really help build a more sustainable flywheel around revenue and cash flow.

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"Aligning masses is one of the greatest potential powers of tokens"

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Some of the takes I’ve seen about @skycastle so far have been missing the forest for the trees imo; either overanalyzing, mid-curving, or both.* To me, Skycastle isn’t trying to be just another VC accelerator… it’s trying to be something that this space has been missing greatly for a very long time: A Network-Native, White Glove Launchpad With Built-In Distribution. Farcaster (and Base more broadly) has never had a shortage of clever builders with interesting ideas for apps, projects, and protocols. We’ve got that covered. What’s far more rare however are founders who can pair great ideas and technical chops with compelling branding, effective marketing, strategic distribution, authentic community-building, professional infra… all the things that actually matter for long-term success. That’s the real reason most projects stall. A good idea, even well-executed, just isn’t enough anymore. Which is why I got v excited when @itsbasil and @garrett asked me to join Skycastle as a founding partner and builder advisor. I want to see Farcaster win. I want to see Base win. And I want to help builders see the magic that can happen when a clever concept and clean code (plus the easy-breezy token launching made possible by @dish and co) meets a network that actually deeply understands distribution. If I were launching @simbiosalabs.eth tomorrow, I’d be applying to Skycastle today. Sure, @netnose has the technical chops (and then some) and I can cover a lot of the other bases. But with the caliber of minds in this advisor cohort, it would be foolish of me not to leverage their advice, tooling, distribution, and guidance. Why wouldn’t I want direct distribution support from @clanker, @noiceapp, and @clicker? UX help from @limone.eth? Infra guidance from @splits, Neynar, and Privy? I would. At the end of the day, if you flip over the “tokenize everything” coin, the other side might read: “curate winners.” That’s what makes me bullish on what $SKY can accomplish… finding hungry, talented builders and giving them the tools and knowledge they need to succeed. Clanker has made it grade-school-level easy to launch tokens. They’ve launched us into the clouds. Now it’s time to build a castle. ☁️☁️🏰☁️☁️

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