<aside> 💡 Click “Duplicate” in the top right corner to save an editable copy of this notion document as a template to complete the canvas for your own project.

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Instructions

For each worksheet, complete each column from the perspective of a given Role in your ecosystem. For example, Liquidity Providers and Traders are roles in AMM's ecosystems. It's advised to complete all columns for one row at a time.
Roles in your ecosystem should not change from worksheet to worksheet, use the same roles each step. If you realize you need to go back and add a new Role, do so.
Designing complex systems is an iterative process. After completing each worksheet, review that one and all previous worksheets to ensure your design is still consistent.

1. Objectives & Requirements

(1A) Role	(1B) What Problem do they Have?	(1C) How do they Solve it Without Your Product?	(1D) How Does Your Product Help?	(1E) What Does Your Token Enable?	(1F) How does the Token Benefit the Product?	(1G) Why is the Token Valuable to Holders?

2. Value Accrual

(2A) Role	(2B) What Value Does Your Product Create?	(2C) How Does Your Product Capture Value?	(2D) What are the Downsides to Capturing this Value?	(2E) How does Captured Value Accrue to the Token?

3. Lifecycle Patterns

| (3A) How is the Token Created?

List all sources of token issuance

Ex. mining, farming, staking, airdrops, etc
(3B) Is the Token Transferrable?

Not all tokens should be tradeable or transferable Ex. reputation or social status tokens | | | (3C) How is the Token Used?

List all ways the token is used Ex. pay for access, discount, collateral, etc | | | (3D) How is the Token Destroyed?

List all ways in which the token is burned or destroyed Ex. burn to mint, burn as payment, expires, etc |

4. Incentive Mechanisms

To complete this worksheet, fill out the Incentive Mechanisms Framework below:

Complete columns A-G for each row first
Next complete column H by checking if each row’s Incentive Mechanisms and Disincentive Mechanisms conflict with any other rows' mechanisms (columns F & G), or desired and undesired behaviors (columns B & D)
After identifying Mechanism Conflicts, complete column I with open questions about how conflicts can be resolved or equilibrium points to quantitatively model
When thinking about resolving conflicts:
- Worry about direction first. When A goes up, should B go up or down?
- Then worry about relative scale. If A goes up, should B go up by more, less, or an unrelated amount?
- Optimizing magnitude comes next, but can only be answered with quantitative simulations and modeling. If A goes up by N, exactly how much should B go up or down by? This framework highlights what you need to model, which we’ll do later.

Incentive Mechanisms Framework

(4A) Role	(4B) Desired Behaviors	(4C) Frictions to Desired Behaviors	(4D) Undesired Behaviors	(4E) Motivations for Undesired Behaviors	(4F) Incentive Mechanisms	(4G) Disincentive Mechanisms	(4H) Mechanism Conflicts	(4I) Possible Resolutions & Open Questions

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