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6 Best AI Marketing Tools That Will Skyrocket Your Business Growth

Paulina Lewandowska

31 Mar 2023
6 Best AI Marketing Tools That Will Skyrocket Your Business Growth

AI marketing tools have revolutionized the approach businesses take to promote their products and services. By utilizing these cutting-edge, AI-driven marketing instruments, marketers can optimize their efforts while effectively targeting potential customers. These advanced tools empower companies to study customer behavior, customize promotional campaigns, and deliver the proper message at the ideal moment to the appropriate target audience.

Our analysis will focus on the distinctive features, capabilities, and pricing structures of each tool to support your quest for a suitable choice that is both budget-friendly and aligned with your objectives. Ranging from chatbots and predictive analytics to machine learning algorithms, we will explore an array of AI tools that contribute to enhancing your marketing ROI and keeping growth.

So, if you're prepared to innovate your marketing strategies and outpace your competition, don't miss our blog post discussing part of the top AI marketing tools available. Harness the full potential of artificial intelligence today and elevate your business to unprecedented heights!

Benefits of Using AI Marketing Tools

AI marketing tools offer a multitude of advantages to businesses aiming to enhance their marketing initiatives. Some of the primary benefits are:

  • Efficiency Enhancement: AI-driven marketing tools can automate monotonous marketing activities, such as email campaigns, social media updates, and content production, allowing marketers to concentrate on other aspects like strategy and inventive content development.
  • Customization: By examining customer information and behaviors, AI marketing tools can create tailored marketing communications for each individual. This enables businesses to forge stronger connections with their customers and elevate the overall customer experience.
  • Real-time Adjustments: AI marketing tools are capable of assessing customer behavior in real-time, modifying marketing messaging as needed. This results in increased conversion rates and ultimately, higher sales figures.
  • Budget-friendly: Automating various marketing responsibilities permits businesses to save both time and financial resources on recruiting extra personnel to manage their marketing campaigns.

Top AI Marketing Tools

Now, let's dive into the tools that will help you to automate your processes and make your work easier and faster!

Hyperwrite

Hyperwrite, one of the best AI marketing tools, harnesses the power of GPT-3 to deliver tailored feedback and recommendations for writer's works. With features aimed at aiding research, organization, and editing, it's a valuable asset for those striving to enhance their writing skills.

By examining the user's writing style, Hyperwrite's AI supplies customized feedback and guidance. The application offers a suite of utilities to support the writing process, including a Chrome extension compatible with multiple platforms such as Google Docs, Gmail, Outlook, LinkedIn, Medium, Notion, and Confluence. Additionally, users can generate documents directly from the Hyperwrite dashboard and utilize its plagiarism checker to guarantee original content.

Hyperwrite Key Features Boasting over 50 templates designed for various use cases like Facebook and LinkedIn posts, Hyperwrite is perfect for generating diverse content. Its "personal database" feature pairs with the Chrome extension to help tailor the AI to individual writing styles. Furthermore, it offers suggestions for shorter content forms, making it an ideal asset for social media creators.

Hyperwrite - Pricing

Featuring a free plan with 100 daily typeaheads shown, 10 paragraphs per month, and 10 rewrites per month; Hyperwrite caters to various budgets. The Premium plan for $19.99 USD monthly grants unlimited access to typeaheads, paragraphs, and rewrites per month. For enhanced AI precision and advanced suggestions, the Ultra plan begins at $44.99 USD per month with unrestricted advanced typeaheads, paragraphs and rewrites per month.

Jasper

Jasper AI, a groundbreaking artificial intelligence writing software, is among the best tools for content creators, marketers, copywriters, bloggers, and students. It enables users to generate high-quality and optimized content at incredible speed. The advanced AI technology integrated into Jasper AI allows the production of content five times faster than a traditional human copywriter, enhancing efficiency for those in need of rapid content creation.

A significant advantage of using Jasper AI is its provision of 100% original content without any plagiarism concerns. You can rely on the accuracy, quality, and uniqueness of Jasper AI-generated content. Moreover, the software offers pre-written templates in specific categories, simplifying the process of crafting customized content.

This revolutionary AI-powered software also creates SEO-friendly content optimized for search engines. The material generated by Jasper AI is not only top-notch but it also allows you tailored to capture sales and pitches effectively. Leveraging Jasper AI can propel you to the top of Google rankings, attracting vast numbers of visitors and fostering dedicated web traffic for future monetization.

Jasper AI showcases a user-friendly interface accompanied by accessible shortcut tools that contribute to its reliability and ease of use. With support for over 25 global languages, it serves those requiring multilingual content generation Jasper AI team to enable swift and efficient high-quality content creation. These templates encompass text summarizers, blog post outlines, feature-to-benefit converters, blog post conclusions, creative stories, sentence expanders, PAS frameworks, content improvers, AIDA structures, blog post topic ideas, video descriptions, and persuasive bullet points.

Jasper AI - Pricing

In terms of pricing, Jasper AI offers affordable options with two plans. The Starter plan costs $29 per month and includes 20,000 words alongside 50+ AI copywriting skills suitable for unlimited projects. This plan encompasses access to Jasper AI Bootcamp as well as auto-save and support for 25+ languages. The Premium (Boss Mode) plan, at price $59 per month provides access to all artificial intelligence-powered tools in Jasper AI, including long-form content, SEO mode, 5x faster content generation etc.

Tome.app

Developing engaging and successful presentations can be a challenging endeavor for many companies and individuals. Considering various aspects such as weaving an enthralling story and fashioning visually attractive slides adds complexity to the task. Moreover, conventional presentation software can be tedious and awkward, making it tough to produce a refined final result promptly. This is where Tome.app, one of the best AI marketing tools, steps in.

Tome.app, a is an AI-driven presentation creation tool, streamlines the process and amplifies storytelling. Utilizing a user-friendly drag-and-drop platform, users can effortlessly transform any speech into an alluring narrative. The app boasts automatic formatting features, pre-made templates, and AI-assisted slide construction, conserving time and energy for users.

Employing AI technology, Tome.app recommends design components, layouts, and images that correspond with the presentation's context. It also harnesses DALL-E, a is an AI powered-generated image creator by OpenAI, to create professional-grade images in sync with the user's message. Furthermore, the app enables live and interactive incorporation of internet-based content, simplifying the embedding process for diverse content from the web in one location. This makes it a valuable tool for content marketing.

Tome.app - Pricing

Tome.app employs a credit-based pricing method wherein each credit represents a single slide. Users have access to various credit packages that range from 50 to 1000 credits. The pricing structure is cost-effective and competitive; users pay only for what they need, rendering it an affordable and adaptable solution for businesses and individuals alike.

GrowthBar SEO

GrowthBar SEO is a powerful SEO tool that provides businesses with a comprehensive suite of features to help them optimize their search engine rankings and grow their online presence. This tool is designed to provide users with a streamlined and intuitive experience, making it easy for both beginners and experienced SEO professionals to use.

One of the standout features of GrowthBar SEO is its ability to provide users with valuable insights into their competitors' SEO strategies. With GrowthBar SEO, users can view their competitors' top organic keywords, backlinks, and traffic sources, allowing them to identify new opportunities to improve their own SEO performance.

In addition to competitor analysis, GrowthBar SEO also offers keyword research and analysis, backlink tracking, on-page SEO optimization, and website analysis tools. These features provide businesses with a holistic view of their website's SEO performance, allowing them to make data-driven decisions and take actionable steps to improve their search engine rankings.

Growthbar - Pricing

Priced at $29/month or $290/year, GrowthBar Basic is the first plan which encompasses features such as keyword research, competitor analysis, backlink insights, and on-page SEO analysis. This plan is most suitable for individuals or small businesses new to SEO who require a comprehensive toolset to get started.

The second plan, GrowthBar Pro, comes at a cost of $79/month or $790/year and incorporates all the features of the GrowthBar Basic plan along with additional features like advanced keyword research, SERP tracking, and custom reporting. This plan is tailored for advanced SEO professionals and agencies seeking more sophisticated features to bolster their campaigns.

Both plans offer a 5-day free trial to help you gauge if the tool aligns with your business needs.

Beacons

Beacons has emerged as an essential link aggregator, making it a versatile and innovative tool for content creators, social media marketing influencers, online marketers, and those aiming to manage their online presence effectively. As one of the prominent AI marketing tools, it empowers users to generate custom landing pages, displaying their social media and website links in an organized and appealing fashion. This allows followers, subscribers, and customers to locate them more easily across various platforms.

A recent notable advancement in Beacons is the expansion of its mobile website builder now incorporating monetization through Beacons blocks. This feature especially benefits content creators and influencers who wish to showcase their products and services more effectively. For example, users can integrate a TikTok shopping block to display their products, connect a TikTok reel reviewing each item, and include a "buy" button for seamless purchases directly within Beacons.

Distinct from other ai tools, Beacons' appearance is a critical aspect that differentiates it from other link aggregators. In creating entire landing pages with ease utilizing the drag-and-drop and layering capabilities of Beacons, users have the option to insert tabs and select from over 1,000 fonts. With no restriction on link quantity and nearly endless background customization options, users can achieve striking visuals by adding color gradients, GIFs, and videos.

Embedding various social media posts types like YouTube or TikTok videos, tweets from Twitter, and music on the landing page is another essential feature provided by Beacons. Users can thus present their most recent uploads intricately and attractively so that followers can effortlessly stay updated.

Beacons offers a digital store block enabling users to establish a miniature digital store directly on their landing pages. While sales made through the blocks have a 9% commission for free users' accounts, entrepreneur plan members don't pay any commission for this service.

Beacons - Pricing

Featuring three pricing plans, Beacons.ai provides options suitable for your varying needs. The Free plan is designed for those just starting out who only need a basic landing page and link addition to their social media bios. This plan offers one landing page, one link in bio, and elementary analytics. For individuals or businesses that require expanded online presence capabilities, the Pro plan costs $8/month or $96/year (saving of $24) and includes unlimited landing pages, unlimited links in bio, as well as advanced analytics.

Lastly, marketing agencies or larger businesses can opt for the Agency plan which caters to collaboration and branding needs when managing multiple clients or brands at $25/month or $300/year (saving of $60), offering all Pro plan features plus team collaboration, custom branding, and white-labeling. A 14-day free trial is available for all plans and yo can resign whenever you want.

Seventh Sense

Seventh Sense serves as a potent an AI powered a marketing tool in the realm of digital marketing, dramatically improving your email marketing campaign's efficiency. This software boasts a variety of features designed to enhance your emails' deliverability and open rates, ultimately leading to higher engagement and increased revenue for your enterprise.

A primary advantage of Seventh Sense lies in its capacity to determine the ideal moment to deliver an email to every individual recipient. The tool scrutinizes data on when each subscriber usually checks their email, allowing for personalized message delivery at the most probable time for engagement and opening. Such customization can substantially boost the likelihood of your emails being noticed and acted upon.

Moreover, Seventh Sense employs throttling to regulate email distribution, decreasing the chances of your messages being flagged as spam. Instead of dispatching thousands of emails simultaneously, the software staggers delivery over several hours, enhancing your email's probability of landing in the recipient's primary inbox.

Seventh Sense also excels in its comprehensive automation capabilities. Adopting a "hands-off" approach, the tool allows if you want to concentrate on other facets of your digital marketing strategy while it autonomously sends out emails at the perfect times. Nevertheless, you maintain the ability to intervene and adjust automation as needed, enabling quick corrections or campaign updates on the go.

Seventh Sense - Pricing

It's crucial to bear in mind that The Seventh Sense enables you to integrate with the HubSpot CRM, and its cost depends on the number of contacts in your HubSpot CRM. With pricing plans starting at the Starter level, this plan is tailored for businesses with up to 1,000 contacts and costs $50 per month. It grants access to the Seventh Sense platform, email open rate enhancement, and click-through rate optimization. For businesses hosting up to 10,000 HubSpot CRM contacts, the Growth plan costs $150 per month and delivers all features of the Starter plan plus A/B testing, email send-time improvement, and send-time heatmaps.

If your business has up to 50,000 contacts, the Pro plan is available at $400 per month, featuring all attributes of the Growth plan along with advanced analytics, email domain reputation tracking, and send-time prediction. Designed for businesses exceeding 50,000 contacts, Enterprise plan pricing is personalized based on individual needs and encompasses all facets of the Pro plan in addition to dedicated support and onboarding. Remember that these fees complement your existing HubSpot subscription. Also, it enables you a 14-day free trial opportunity for you to sample the tool before investing in a paid program.

How to effectively incorporate AI marketing tools into your strategy

Seamlessly integrating the best AI marketing tools into your content marketing strategy may appear challenging, but with these guidelines, you can efficiently utilize these tools and reach your desired outcomes:

  • Determine your marketing objectives: Before implementing anything, it's crucial to establish your marketing targets. What do you want to accomplish through your marketing campaigns? Is it growing website traffic, generating more leads, or enhancing customer interaction? Once you've defined your objectives, selecting the appropriate tools to help reach those goals becomes easier.
  • Select suitable AI tool: Numerous AI marketing solutions exist, but not all might be right for your business. Identify those that correspond with your marketing objectives and are user-friendly. Opt for AI marketing tools that can easily integrate with your existing marketing software, simplifying your workflow.
  • Educate your staff: The effectiveness of a concrete tool depends on the users' proficiency. Ensure that your team is well-versed in utilizing these tools and understands their role in achieving marketing objectives. Equip them with necessary resources and support for maximizing the benefits.
  • Review and evaluate outcomes: Leveraging AI marketing tools can offer invaluable insights into the effectiveness of your content marketing strategies. Regularly monitor results and make adjustments as required to optimize your approach. Utilize data, provided by the tool you use, for well-informed decision-making and the continuous improvement of your strategies.

Embracing these guidelines allows you to successfully implement the best solution for your content marketing strategy and reach desired goals.

Conclusion

In conclusion, the use of an ai marketing tool can significantly enhance a business's marketing efforts by providing increased efficiency, personalization, real-time optimization, and cost-effectiveness. These tools can automate repetitive marketing tasks, generate personalized marketing messages based on customer data, analyze customer behavior in real-time, and ultimately lead to more sales. Some AI marketing tools offer unique features such as AI-powered writing and SEO-friendly content generation, making it easier for businesses to create high-quality content quickly and efficiently. By implementing these tools into their marketing strategy, businesses can improve their ROI and stay ahead of the competition.

Also, if you want to know 7 best ai tools for your everyday use, be sure to check it out!

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Applying Game Theory in Token Design

Kajetan Olas

16 Apr 2024
Applying Game Theory in Token Design

Blockchain technology allows for aligning incentives among network participants by rewarding desired behaviors with tokens.
But there is more to it than simply fostering cooperation. Game theory allows for designing incentive-machines that can't be turned-off and resemble artificial life.

Emergent Optimization

Game theory provides a robust framework for analyzing strategic interactions with mathematical models, which is particularly useful in blockchain environments where multiple stakeholders interact within a set of predefined rules. By applying this framework to token systems, developers can design systems that influence the emergent behaviors of network participants. This ensures the stability and effectiveness of the ecosystem.

Bonding Curves

Bonding curves are tool used in token design to manage the relationship between price and token supply predictably. Essentially, a bonding curve is a mathematical curve that defines the price of a token based on its supply. The more tokens that are bought, the higher the price climbs, and vice versa. This model incentivizes early adoption and can help stabilize a token’s economy over time.

For example, a bonding curve could be designed to slow down price increases after certain milestones are reached, thus preventing speculative bubbles and encouraging steadier, more organic growth.

The Case of Bitcoin

Bitcoin’s design incorporates game theory, most notably through its consensus mechanism of proof-of-work (PoW). Its reward function optimizes for security (hashrate) by optimizing for maximum electricity usage. Therefore, optimizing for its legitimate goal of being secure also inadvertently optimizes for corrupting natural environment. Another emergent outcome of PoW is the creation of mining pools, that increase centralization.

The Paperclip Maximizer and the dangers of blockchain economy

What’s the connection between AI from the story and decentralized economies? Blockchain-based incentive systems also can’t be turned off. This means that if we design an incentive system that optimizes towards a wrong objective, we might be unable to change it. Bitcoin critics argue that the PoW consensus mechanism optimizes toward destroying planet Earth.

Layer 2 Solutions

Layer 2 solutions are built on the understanding that the security provided by this core kernel of certainty can be used as an anchor. This anchor then supports additional economic mechanisms that operate off the blockchain, extending the utility of public blockchains like Ethereum. These mechanisms include state channels, sidechains, or plasma, each offering a way to conduct transactions off-chain while still being able to refer back to the anchored security of the main chain if necessary.

Conceptual Example of State Channels

State channels allow participants to perform numerous transactions off-chain, with the blockchain serving as a backstop in case of disputes or malfeasance.

Consider two players, Alice and Bob, who want to play a game of tic-tac-toe with stakes in Ethereum. The naive approach would be to interact directly with a smart contract for every move, which would be slow and costly. Instead, they can use a state channel for their game.

  1. Opening the Channel: They start by deploying a "Judge" smart contract on Ethereum, which holds the 1 ETH wager. The contract knows the rules of the game and the identities of the players.
  2. Playing the Game: Alice and Bob play the game off-chain by signing each move as transactions, which are exchanged directly between them but not broadcast to the blockchain. Each transaction includes a nonce to ensure moves are kept in order.
  3. Closing the Channel: When the game ends, the final state (i.e., the sequence of moves) is sent to the Judge contract, which pays out the wager to the winner after confirming both parties agree on the outcome.

A threat stronger than the execution

If Bob tries to cheat by submitting an old state where he was winning, Alice can challenge this during a dispute period by submitting a newer signed state. The Judge contract can verify the authenticity and order of these states due to the nonces, ensuring the integrity of the game. Thus, the mere threat of execution (submitting the state to the blockchain and having the fraud exposed) secures the off-chain interactions.

Game Theory in Practice

Understanding the application of game theory within blockchain and token ecosystems requires a structured approach to analyzing how stakeholders interact, defining possible actions they can take, and understanding the causal relationships within the system. This structured analysis helps in creating effective strategies that ensure the system operates as intended.

Stakeholder Analysis

Identifying Stakeholders

The first step in applying game theory effectively is identifying all relevant stakeholders within the ecosystem. This includes direct participants such as users, miners, and developers but also external entities like regulators, potential attackers, and partner organizations. Understanding who the stakeholders are and what their interests and capabilities are is crucial for predicting how they might interact within the system.

Stakeholders in blockchain development for systems engineering

Assessing Incentives and Capabilities

Each stakeholder has different motivations and resources at their disposal. For instance, miners are motivated by block rewards and transaction fees, while users seek fast, secure, and cheap transactions. Clearly defining these incentives helps in predicting how changes to the system’s rules and parameters might influence their behaviors.

Defining Action Space

Possible Actions

The action space encompasses all possible decisions or strategies stakeholders can employ in response to the ecosystem's dynamics. For example, a miner might choose to increase computational power, a user might decide to hold or sell tokens, and a developer might propose changes to the protocol.

Artonomus, Github

Constraints and Opportunities

Understanding the constraints (such as economic costs, technological limitations, and regulatory frameworks) and opportunities (such as new technological advancements or changes in market demand) within which these actions take place is vital. This helps in modeling potential strategies stakeholders might adopt.

Artonomus, Github

Causal Relationships Diagram

Mapping Interactions

Creating a diagram that represents the causal relationships between different actions and outcomes within the ecosystem can illuminate how complex interactions unfold. This diagram helps in identifying which variables influence others and how they do so, making it easier to predict the outcomes of certain actions.

Artonomus, Github

Analyzing Impact

By examining the causal relationships, developers and system designers can identify critical leverage points where small changes could have significant impacts. This analysis is crucial for enhancing system stability and ensuring its efficiency.

Feedback Loops

Understanding feedback loops within a blockchain ecosystem is critical as they can significantly amplify or mitigate the effects of changes within the system. These loops can reinforce or counteract trends, leading to rapid growth or decline.

Reinforcing Loops

Reinforcing loops are feedback mechanisms that amplify the effects of a trend or action. For example, increased adoption of a blockchain platform can lead to more developers creating applications on it, which in turn leads to further adoption. This positive feedback loop can drive rapid growth and success.

Death Spiral

Conversely, a death spiral is a type of reinforcing loop that leads to negative outcomes. An example might be the increasing cost of transaction fees leading to decreased usage of the blockchain, which reduces the incentive for miners to secure the network, further decreasing system performance and user adoption. Identifying potential death spirals early is crucial for maintaining the ecosystem's health.

The Death Spiral: How Terra's Algorithmic Stablecoin Came Crashing Down
the-death-spiral-how-terras-algorithmic-stablecoin-came-crashing-down/, Forbes

Conclusion

The fundamental advantage of token-based systems is being able to reward desired behavior. To capitalize on that possibility, token engineers put careful attention into optimization and designing incentives for long-term growth.

FAQ

  1. What does game theory contribute to blockchain token design?
    • Game theory optimizes blockchain ecosystems by structuring incentives that reward desired behavior.
  2. How do bonding curves apply game theory to improve token economics?
    • Bonding curves set token pricing that adjusts with supply changes, strategically incentivizing early purchases and penalizing speculation.
  3. What benefits do Layer 2 solutions provide in the context of game theory?
    • Layer 2 solutions leverage game theory, by creating systems where the threat of reporting fraudulent behavior ensures honest participation.

Tagi

Token Engineering Process

Kajetan Olas

13 Apr 2024
Token Engineering Process

Token Engineering is an emerging field that addresses the systematic design and engineering of blockchain-based tokens. It applies rigorous mathematical methods from the Complex Systems Engineering discipline to tokenomics design.

In this article, we will walk through the Token Engineering Process and break it down into three key stages. Discovery Phase, Design Phase, and Deployment Phase.

Table of Contents

Discovery Phase of Token Engineering Process

The first stage of the token engineering process is the Discovery Phase. It focuses on constructing high-level business plans, defining objectives, and identifying problems to be solved. That phase is also the time when token engineers first define key stakeholders in the project.

Defining the Problem

This may seem counterintuitive. Why would we start with the problem when designing tokenomics? Shouldn’t we start with more down-to-earth matters like token supply? The answer is No. Tokens are a medium for creating and exchanging value within a project’s ecosystem. Since crypto projects draw their value from solving problems that can’t be solved through TradFi mechanisms, their tokenomics should reflect that. 

The industry standard, developed by McKinsey & Co. and adapted to token engineering purposes by Outlier Ventures, is structuring the problem through a logic tree, following MECE.
MECE stands for Mutually Exclusive, Collectively Exhaustive. Mutually Exclusive means that problems in the tree should not overlap. Collectively Exhaustive means that the tree should cover all issues.

In practice, the “Problem” should be replaced by a whole problem statement worksheet. The same will hold for some of the boxes.
A commonly used tool for designing these kinds of diagrams is the Miro whiteboard.

Identifying Stakeholders and Value Flows in Token Engineering

This part is about identifying all relevant actors in the ecosystem and how value flows between them. To illustrate what we mean let’s consider an example of NFT marketplace. In its case, relevant actors might be sellers, buyers, NFT creators, and a marketplace owner. Possible value flow when conducting a transaction might be: buyer gets rid of his tokens, seller gets some of them, marketplace owner gets some of them as fees, and NFT creators get some of them as royalties.

Incentive Mechanisms Canvas

The last part of what we consider to be in the Discovery Phase is filling the Incentive Mechanisms Canvas. After successfully identifying value flows in the previous stage, token engineers search for frictions to desired behaviors and point out the undesired behaviors. For example, friction to activity on an NFT marketplace might be respecting royalty fees by marketplace owners since it reduces value flowing to the seller.

source: https://www.canva.com/design/DAFDTNKsIJs/8Ky9EoJJI7p98qKLIu2XNw/view#7

Design Phase of Token Engineering Process

The second stage of the Token Engineering Process is the Design Phase in which you make use of high-level descriptions from the previous step to come up with a specific design of the project. This will include everything that can be usually found in crypto whitepapers (e.g. governance mechanisms, incentive mechanisms, token supply, etc). After finishing the design, token engineers should represent the whole value flow and transactional logic on detailed visual diagrams. These diagrams will be a basis for creating mathematical models in the Deployment Phase. 

Token Engineering Artonomous Design Diagram
Artonomous design diagram, source: Artonomous GitHub

Objective Function

Every crypto project has some objective. The objective can consist of many goals, such as decentralization or token price. The objective function is a mathematical function assigning weights to different factors that influence the main objective in the order of their importance. This function will be a reference for machine learning algorithms in the next steps. They will try to find quantitative parameters (e.g. network fees) that maximize the output of this function.
Modified Metcalfe’s Law can serve as an inspiration during that step. It’s a framework for valuing crypto projects, but we believe that after adjustments it can also be used in this context.

Deployment Phase of Token Engineering Process

The Deployment Phase is final, but also the most demanding step in the process. It involves the implementation of machine learning algorithms that test our assumptions and optimize quantitative parameters. Token Engineering draws from Nassim Taleb’s concept of Antifragility and extensively uses feedback loops to make a system that gains from arising shocks.

Agent-based Modelling 

In agent-based modeling, we describe a set of behaviors and goals displayed by each agent participating in the system (this is why previous steps focused so much on describing stakeholders). Each agent is controlled by an autonomous AI and continuously optimizes his strategy. He learns from his experience and can mimic the behavior of other agents if he finds it effective (Reinforced Learning). This approach allows for mimicking real users, who adapt their strategies with time. An example adaptive agent would be a cryptocurrency trader, who changes his trading strategy in response to experiencing a loss of money.

Monte Carlo Simulations

Token Engineers use the Monte Carlo method to simulate the consequences of various possible interactions while taking into account the probability of their occurrence. By running a large number of simulations it’s possible to stress-test the project in multiple scenarios and identify emergent risks.

Testnet Deployment

If possible, it's highly beneficial for projects to extend the testing phase even further by letting real users use the network. Idea is the same as in agent-based testing - continuous optimization based on provided metrics. Furthermore, in case the project considers airdropping its tokens, giving them to early users is a great strategy. Even though part of the activity will be disingenuine and airdrop-oriented, such strategy still works better than most.

Time Duration

Token engineering process may take from as little as 2 weeks to as much as 5 months. It depends on the project category (Layer 1 protocol will require more time, than a simple DApp), and security requirements. For example, a bank issuing its digital token will have a very low risk tolerance.

Required Skills for Token Engineering

Token engineering is a multidisciplinary field and requires a great amount of specialized knowledge. Key knowledge areas are:

  • Systems Engineering
  • Machine Learning
  • Market Research
  • Capital Markets
  • Current trends in Web3
  • Blockchain Engineering
  • Statistics

Summary

The token engineering process consists of 3 steps: Discovery Phase, Design Phase, and Deployment Phase. It’s utilized mostly by established blockchain projects, and financial institutions like the International Monetary Fund. Even though it’s a very resource-consuming process, we believe it’s worth it. Projects that went through scrupulous design and testing before launch are much more likely to receive VC funding and be in the 10% of crypto projects that survive the bear market. Going through that process also has a symbolic meaning - it shows that the project is long-term oriented.

If you're looking to create a robust tokenomics model and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.

FAQ

What does token engineering process look like?

  • Token engineering process is conducted in a 3-step methodical fashion. This includes Discovery Phase, Design Phase, and Deployment Phase. Each of these stages should be tailored to the specific needs of a project.

Is token engineering meant only for big projects?

  • We recommend that even small projects go through a simplified design and optimization process. This increases community's trust and makes sure that the tokenomics doesn't have any obvious flaws.

How long does the token engineering process take?

  • It depends on the project and may range from 2 weeks to 5 months.

Tagi