Phantom Blocks and Enflux Join Forces to Promote Sustainable Tokenomics and Transparent Market Making

October 3rd, 2023

Written by Jelle Buth, Harald Horrmann and Lukas Philipp

Introduction

Phantom Blocks and Enflux have partnered to offer a comprehensive solution for ventures seeking to optimize their tokenomics and market-making strategies.

Enflux, a market maker specializing in digital assets, addresses the challenge of transparency in market making by providing clients with the tools and knowledge necessary to assess the performance of their market-making activities.

Phantom Blocks provides consulting services to Web3 ventures and traditional corporations, assisting them in effectively integrating blockchain technology into their operations. One of their key areas of expertise lies in enhancing tokenomics to align them with a venture's business model.

As part of this partnership, Enflux clients have the opportunity to undergo a complimentary tokenomics review conducted by Phantom Blocks. This collaborative effort aims to highlight areas of improvement of their tokenomics before engaging with a market maker such as Enflux.

Conversely, clients of Phantom Blocks can take advantage of one month of free market-making services and/or liquidity analysis. This offering is extended to all current and future clients, empowering them with insights into their markets and their market maker's performance.

The primary goal of this collaboration is to support ventures in the blockchain technology sector by sharing the expertise and knowledge of Phantom Blocks and its network and Enflux. Together, they aim to provide ventures with the necessary resources to succeed in an evolving landscape marked by transparency and sustainability.

Sustainable Tokenomics Enable Successful Business Models and Vice Versa

Effective tokenomics stem from a well-crafted business model, with tokenomics often serving as a natural extension of this model. In certain instances, as seen in the case of blockchain networks, the native coin used for transaction fees plays a pivotal role as a core component of the business model.

With currently over 20,000 cryptocurrencies it’s very common to encounter tokenomics that provide no or only minimal value to the underlying business model or, in some cases, create obstacles for project stakeholders. It's crucial to clear up the misconception that every blockchain-based venture must incorporate a token.

Consider, for instance, tokens solely utilized as a Medium of Exchange (MoE). Established tokens like USDC, BUSD, and DAI serve as prime examples. Many projects introduce their own MoE tokens within their ecosystem, primarily to facilitate transactions. Often, these tokens can be readily replaced with more established MoE tokens, eliminating unnecessary complexities for users.

Tokenomics reviews play a pivotal role in helping projects pinpoint areas of improvement within their tokenization strategy. They aim to assess whether the token aligns with the project's business model objectives and genuinely enhances value for users or, conversely, presents hurdles. Armed with the insights gained from these reviews, projects can then refine their tokenomics independently or collaborate with Phantom Blocks to optimize toward sustainable tokenomics solutions or re-design them from scratch.

Transparent Market Making

Enflux is committed to offering a market-making service for digital assets, particularly cryptocurrencies, that prioritizes transparency and collaboration. Their mission is to demystify the inner workings of market makers, making it clear how they operate and deliver results.

While not all market makers are untrustworthy, accountability is crucial in this space. It's essential to have the means to monitor and evaluate their performance, ensuring they adhere to their commitments and manage funds as agreed upon.

Unfortunately, many projects lack the expertise and tools required to gauge a market maker's effectiveness. This knowledge gap has left some projects vulnerable to exploitation by their market makers. Instances where metrics like spread percentages and liquidity depth are scrutinized often reveal disparities that leave project owners questioning their market maker's practices.

Typically, market makers possess access to comprehensive data regarding liquidity and their own performance, yet this information is often kept veiled from their clients. This secrecy begs the question: why?

Enflux is taking a different approach by equipping its market-making clients with the tools and knowledge necessary to independently verify performance and gain invaluable market insights. Their commitment to transparency means there are no hidden agendas and performance is verifiable, ensuring trust and accountability throughout the partnership.

The Partnership

Both Phantom Blocks and Enflux have forged a collaboration aimed at delivering a special complimentary service to their current and future clients. Together, their focus centers on sharing insightful perspectives regarding market making, tokenomics, and their complex interplay. The objective is to enhance the success rate for blockchain-enabled projects.

In the early stages of any venture, the formulation of a well-structured business model is crucial, giving enough room for adjustments. When a market-proven business model is in place, the groundwork is laid for the development of a tokenization strategy that aligns with the strategic objectives outlined in the business plan. This strategy encompasses various elements, including the token's role and the strategic considerations related to listings, liquidity management, and market making.

The relationship between tokenomics and market-making becomes evident. For instance, the vesting schedule, a key component of tokenomics, delineates when and how many tokens are released—a factor with significant implications for token prices, which is of high importance to market makers. Furthermore, tokenomics dictates the allocation of tokens earmarked for liquidity provision when establishing market pairs on exchanges.

The partnership between Phantom Blocks and Enflux underscores the intrinsic connection between tokenomics and market making, ensuring that clients have access to a holistic understanding of these domains.

For ventures currently engaged with Phantom Blocks, this partnership presents an exclusive opportunity. They can gain insights into their current liquidity through a complimentary liquidity review and experience firsthand the potential of transparent and collaborative market-making with a month of free complimentary market-making services so projects can experience transparent market-making themselves. Projects will daily be in touch with co-founder Jelle Buth who has over 4 years of market-making experience and provided liquidity to over 60 pairs. After the trial, projects will be well equipped with the proper knowledge about market making, a good understanding of their own market’s dynamics and they will have a healthy market that is ready for project adoption.

Enflux's clients, on the other hand, now have the opportunity to have their tokenomics quickly reviewed at no charge. Lukas, co-founder of Phantom Blocks, has extensive knowledge in tokenomics and has written research articles on various token models published by the Tokenomics DAO. Harald, the CEO and co-founder, is very experienced in developing and evaluating business models. Phantom Blocks has already advised numerous projects, e.g. on their tokenization strategies.

Conclusion

If you're involved in a Web3 project, we invite you to stay connected for forthcoming valuable insights and posts jointly presented by both companies. For those eager to explore further, please feel free to reach out to Phantom Blocks or Enflux to inquire about these exclusive complimentary services.

Stay tuned for more.

Introduction

Sustainable Tokenomics Enable Successful Business Models and Vice Versa

Transparent Market Making

The Partnership

Conclusion

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