As per it comes to Web3, tokenomics, the economic framework behind tokens which is often the make or break factor for a project's long term success. Tokenomics is not just about how many tokens exist but it also covers distribution schedules, governance rights, incentives and mechanisms that balance supply and demand.
Arbitrum, IOTA, ApeCoin, Velo and Tribal Token which is now crafted their tokenomic models where each has project highlights a very different paths towards scalability, community governance or enterprise adoption by looking at these tokens side by side, in which we can uncover some universal lessons about what sustainable tokenomics looks like practice!
Arbitrum: Ethereum’s Scaling Champion
(Upcoming Event on 16 September 2025)
Arbitrum is one of the most successful layer 2 solutions for Ethereum which also leverages optimistic rollups to process transactions faster and at a fraction of the cost where it also becomes a go to ecosystem for developers seeking to scale decentralized apps while maintaining Ethereum’s security.
Token Structure: The ecosystem is powered by ARB where a governance token that gives holders rights in the Arbitrum DAO.
A notable 12.75% of the supply was distributed through a major airdrop to early users and partner DAOs where this not only rewarded early adopters but also reinforced Arbitrum’s community first image. Also the reminder of the tokens follow structured vesting plans to avoid flooding the market and maintain stability.
Governance In Action: ARB holders influence the decisions around treasury usage, upgrades and new initiatives by major rollouts like Arbitrum Orbit L3 scaling show how governance participation directly shapes the ecosystem’s evolution.
Impact on Ethereum: Over the millions of active addresses and hundreds of DeFi protocols which have deployed but now Arbitrum has proven how a well structured token economy can attract both users and developers. Its transparent governance and measures of release schedule stand as a blueprint for other projects.
Total Unlock Process:
Total Locked: 20.38% (2.04 b ARB tokens)
TBD Locked: 34.04% (34.04 b ARB Tokens)
Unlocked: 45.59% (4.56 b ARB Tokens)
Untracked: –
Token Allocations
Arbitrum DAO Treasury: 8.7%
Arbitrum DAO Treasury (TBD): 34%
Team, Future Team: 26.9%
Investors: 17.5%
Individuals Wallet: 11.6%
Daos in Arbitrum Ecosystem: 1.1%.
(Upcoming Event on 17 September 2025)
The traditional blockchains like IOTA uses the Tangle which is a Directed Acyclic Graph (DAG) to process transactions without gas fees, this is to make it lightweight, scalable and sustainable which is an ideal for micro transactions and loT use cases.
Token Economics: The total supply is expanded after the stardust upgrade which is now reaching up to 4.6 billion tokens or as we also say 4.6 quadrillion microIOTAs, which implies the changes to improved fairness and distributed ownership more widely.
The token utility also includes staking, securing the network and also providing the liquidity to decentralized applications.
Fees are now generally burned which also introduces a mild deflationary effect that balances any inflation from staking rewards.
Governance Evolution: IOTA has steadily moved towards decentralization which also gives the token holders more control over protocol decisions and up[grades post stardust.
Key Takeaways: After designing it, a feeless, sustainable and deflationary-titled system where IOTA demonstrates how tokenomics can align with long term ecosystem growth and accessibility.
Total Unlock Progress
Total Locked: 14.83%
TBD Locked: 5.19%
Unlocked: 79.74%
Untracked: 0.23%
Token Allocations
IOTA Holders: 55.1%
IOTA DLT Foundation: 12.0%
Tongle Ecosystem Association: 12.0%
IOTA Foundation: 7.1%
Contributors: 5.0%
Unclaimed Tokens: 3.8%
IOTA Airdrops: 3.5%
Treasury DAO: 1.4%
(Upcoming Event on 17th September 2025)
ApeCoin is born from the widely popular Bored Ape Yacht Club (BAYC), ApeCoin (AOE) which serves as both a utility and governance token where it has to extend BAYC’s cultural reach into gaming, payments and metaverse experiences.
Core tokenomics: The total supply is capped at 1 billion APE with most of it scheduled to be in circulation by 2025. The ApeCoin DAO governs the ecosystem where holders decide for funds, partnerships and community programs.
APE doubles as an access key where it also enables in-game purchases like premium membership benefits and incentives for developers which builds on BAYC related platforms.
Balancing Supply: APE relies on predictable unlock schedules and occasional burning mechanisms to keep inflation in check while rewarding active participants.
Broader Impact: As an experiment by governance the ApeCoin highlights the power of token driven DAOs which is a democratic model where community members directly shape project growth.
Total Unlock Progress:
Total Locked: 9.13%
Unlocked: 90.87
Untracked: 0.00%
Token Allocations:
Treasury: 47%
Airdrop: 15%
Yuga Labs: 15%
Launch Contributors: 8.5%
Yoga Labs Founder: 8.0%
Launch Contributors 3: 3.0%
Launch Contributors 2: 2.5%
Charity: 1.0%
(Upcoming Event on 20th September 2025)
Velo focuses on bridging global business through blockchain enabled settlements, ,where the platform allows enterprises to create digital credits backed by collateral efficient cross broader transactions.
Token Distribution: VELO has a maximum supply of 24 billion with over 17.5 billion are currently in circulation. Token release follows a vesting plan which is designed to align with adoption milestones rather than overwhelming markets prematurely.
VELO functions as the backbone of the network which also empowers the governance, also by staking and the minting of business specific credits.
Unique Innovation: Instead of focusing solely on retail DeFi the Velo builds a federated credit exchange that enterprises can adopt, also the system leverages the Stealler’s low cost consensus for reliable settlements.
Value Propositions: Thus by anchoring its tokenomics to real enterprises which also needs to ensure the gradual release where the Velo stands out as a model for business oriented blockchain adoption.
Token Allocation:
Velo Development Reserve: 23.3%
Strategic Partners: 18.3%
Community Development: 18.3%
Reserve: 16.7%
Founders: 10%
Early Backers and Advisors: 7.9%
Private Placement: 4.9%
Listing : 0.7%
(Upcoming Event on 17th September 2025)
The Tribal Token takes a more practical route which aims for simplifying the business payments while regarding users and its design also integrates the discount, rebates and governance rights for participants within the Tribal Finance Ecosystem.
Token Framework: TRIBL’s supply is capped at 1 billion in which allocation covers the operational reserves, incentive pools and community initiatives. Vesting is staged over time by ensuring the holders and investors which remain committed to long term network growth, also with the users benefit directly through transaction discounts, staking rewards and exclusive program access.
Governance Approach: The decision making is spread across large and small stakeholders which also creates a balanced governance model where token holders’ voice matters.
Lesson Learned: The tribal token shows how tokenomics can merge financial utility with customer loyalty by making it especially attractive for business seeking real world applications.
Total Unlock Progress:
Total Locked: 27.39%
Unlocked: 72.61%
Untracked: –
Token Allocations:
Treasury: 46.1%
Private Investor: 18.6%
Marketing/BD: 10%
Team: 10%
CEX Listings/Liquidity: 6.6%
Advisors/Coinlist: 5.0%
Coinlist: 3.7%
After looking across these five case studies with some clear principles as they emerge:
Utility is Non-Negotiable: The tokens must solve a real problem whether enabling governance, power transactions or delivering rewards.
Transparency Builds Trust: The public token schedules, airdrops and governance forums reduce speculations and foster community loyalty,
Governance Matters: Giving the holders as real decision making as power creates engagement and aligns incentives,
Scarcity Mechanisms: Keep value stable like Burning, vesting and controlled supply growth and also prevent runway inflation,
Long Term Incentives: Gradual release ensures that teams, investors and users remain aligned over years not just for months.
Arbitrum, IOTA, ApeCoin , Velo and Tribal token each highlight different aspects of tokenomics done right where some have to emphasise the scalability and efficiency as others focus on community ownership or enterprise adoption.
Yet all of them share one unifying trait: having their token design are built to last.
Vaibhav Tripathi is a dedicated crypto writer with a sharp focus on blockchain technology, digital assets, and the evolving world of decentralized finance. With a deep understanding of the crypto ecosystem, Vaibhav excels at translating intricate blockchain concepts into clear, concise, and engaging content. His coverage spans a wide range of topics — from Bitcoin and altcoins to Web3, NFTs, and DeFi protocols — making his work valuable to both new entrants and experienced investors. Vaibhav actively tracks market trends, technological breakthroughs, and regulatory updates to provide timely and insightful analysis. He believes in the transformative power of blockchain to reshape traditional financial systems and drive global innovation.