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<!doctype html>
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<title>Simple Token Design Lifecycle Example — Linas Stankevičius</title>
<meta name="description" content="A worked example of the five-phase token design lifecycle, traced through one transferable single-use access pass.">
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<header class="bar">
<div class="wrap">
<a class="mono-mark" href="index.html" aria-label="Back to the main page">
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<nav>
<a href="index.html">← HOME</a>
<a href="#phase1">01 DISCOVERY</a>
<a href="#phase2">02 DESIGN</a>
<a href="#phase3">03 MODEL</a>
<a href="#phase4">04 LAUNCH</a>
<a href="#phase5">05 MONITOR</a>
<a href="#trace">TRACE</a>
</nav>
</div>
</header>
<main class="wrap" id="top">
<section class="doc-head">
<p class="eyebrow">WORKED EXAMPLE · TOKEN ENGINEERING</p>
<h1>Simple Token Design Lifecycle Example</h1>
<div class="prose">
<p class="lede">
This example shows how a token-based system moves from a first client requirement to a
precise specification, validation, implementation handoff and post-launch review.
</p>
<p>
The mechanism is simple on purpose. Atlas runs a workshop for 30 persons. Atlas wants each
registration to receive a digital access pass. A holder can transfer the pass to another
person before check-in. A pass admits one person one time only.
</p>
<p>
We use one pass, <b>Ticket 7</b>, to trace the complete lifecycle. Anna owns Ticket 7 first.
She transfers it to Ben before the workshop. Ben then uses it to enter. A second use of the
same pass must fail.
</p>
<p>
The purpose is not to propose a complex token model. The purpose is to make the token
engineering process visible with a mechanism that all persons can follow. Each phase shows
the information that enters, the decisions that occur, the artifact that the phase produces
and the conditions that permit the work to continue.
</p>
<p class="note">The example is fictional. It follows the five phases of the standard token design lifecycle.</p>
</div>
<div class="links">
<a class="btn primary" href="#phase1">START AT PHASE 1</a>
<a class="btn" href="index.html">BACK TO PROFILE</a>
</div>
</section>
<!-- ================= ENGAGEMENT FLOW ================= -->
<section class="sec" id="flow">
<div class="sec-h"><span class="n">00</span><h2>ENGAGEMENT FLOW</h2><span class="rule"></span></div>
<div class="card fig">
<ol class="steps">
<li>
<span class="num">1</span>
<div class="node acc">Discovery</div>
<span class="arr">→</span>
<span class="out">30 seats and one entry per ticket</span>
</li>
<li>
<span class="num">2</span>
<div class="node acc">Design</div>
<span class="arr">→</span>
<span class="out">Rules for issue, transfer and use</span>
</li>
<li>
<span class="num">3</span>
<div class="node acc">Model and test</div>
<span class="arr">→</span>
<span class="out">Worked cases and checked results</span>
</li>
<li>
<span class="num">4</span>
<div class="node acc">Implement and launch</div>
<span class="arr">→</span>
<span class="out">Tested ticket and door application</span>
</li>
<li>
<span class="num">5</span>
<div class="node acc">Monitor</div>
<span class="arr">→</span>
<span class="out">Entry log and improvement decision</span>
</li>
</ol>
<p class="fig-cap">A failed test returns the work to Design. A live issue returns the work to the relevant rule or test.</p>
</div>
<p class="kicker">TRACE TICKET 7 THROUGH THE LIFECYCLE</p>
<div class="tbl-wrap">
<table>
<thead>
<tr><th>Concrete state</th><th>Rule</th><th>Action</th><th>Result</th></tr>
</thead>
<tbody>
<tr><td>Ticket 7 owned by Anna</td><td>Transfer permitted before 17:30</td><td>Anna transfers to Ben at 16:00</td><td>Ben becomes owner</td></tr>
<tr><td>Ben arrives at 17:35</td><td>Current owner may enter one time</td><td>Ben authorizes; Mei submits check-in</td><td>Ticket 7 becomes Used</td></tr>
<tr><td>Ticket 7 is presented again</td><td>Used tickets cannot authorize entry</td><td>Repeat check-in request</td><td>Request rejected</td></tr>
</tbody>
</table>
</div>
</section>
<!-- ================= PHASE 1 ================= -->
<section class="sec" id="phase1">
<div class="sec-h"><span class="n">01</span><h2>DISCOVERY & REQUIREMENTS</h2><span class="rule"></span></div>
<div class="prose">
<p class="first"><b>Objective:</b> define the access right, the system constraints and the responsible actors.</p>
</div>
<div class="tbl-wrap">
<table>
<thead><tr><th>Input</th><th>Specified value</th></tr></thead>
<tbody>
<tr><td>Event</td><td>Atlas Workshop 01 · 14 November 2026</td></tr>
<tr><td>Capacity and access</td><td>30 seats; one pass admits one person; registration is free</td></tr>
<tr><td>Token definition</td><td>Atlas Workshop Pass (AWP); token IDs 1–30</td></tr>
<tr><td>Check-in window</td><td>14 November 2026, 17:30:00–18:00:00 UTC; 18:00 excluded</td></tr>
<tr><td>Actors</td><td>Nora issues passes; Anna and Ben hold passes; Mei operates check-in</td></tr>
<tr><td>Initial state</td><td>Ticket 7 is Active and owned by Anna</td></tr>
<tr><td>Client requirement</td><td>A holder can transfer the access right directly to another wallet before check-in</td></tr>
<tr><td>Acceptance criteria</td><td>Maximum 30 admissions; no pass used two times; all valid scripted cases succeed</td></tr>
</tbody>
</table>
</div>
<div class="card fig">
<div class="actors">
<div class="lane">
<div class="node acc">Nora<span class="sub">organizer</span></div>
<div class="edge"><span class="lab">issues</span><span class="arr">→</span></div>
<div class="node">Anna / Ben<span class="sub">ticket holder</span></div>
<div class="edge"><span class="lab">arrives</span><span class="arr">→</span></div>
<div class="node acc">Mei<span class="sub">door operator</span></div>
</div>
<div class="down">
<span class="arr">↓</span>
<span class="lab">Nora issues up to 30 · the holder authorizes use · Mei checks and records entry</span>
</div>
<div class="node record">Ticket record<span class="sub">owner and status</span></div>
</div>
<p class="fig-cap">Responsibility map. Each actor holds one right. The ticket record holds the owner and the status of every pass.</p>
</div>
<div class="prose">
<p><b>Method:</b> trace Ticket 7 from Anna to Ben. Define who can issue, transfer and check in a pass.</p>
<p><b>Output:</b> agreed requirements and responsibility map.</p>
</div>
<div class="gate">
<b>PHASE COMPLETE WHEN</b>
The access rights, the capacity, the timing and the acceptance conditions are defined.
A change to these requirements returns the work to this phase.
</div>
</section>
<!-- ================= PHASE 2 ================= -->
<section class="sec" id="phase2">
<div class="sec-h"><span class="n">02</span><h2>MECHANISM DESIGN & SPECIFICATION</h2><span class="rule"></span></div>
<div class="prose">
<p class="first"><b>Objective:</b> change the approved requirements into deterministic rules.
<b>Input:</b> the Phase 1 brief and the start state of Ticket 7.</p>
</div>
<div class="card fig">
<div class="states">
<div class="row">
<div class="node idle">Not issued</div>
<div class="edge"><span class="lab">issue</span><span class="arr">→</span></div>
<div class="node acc">Active ticket<span class="sub">transfer changes the owner</span></div>
<div class="edge"><span class="lab">check in one time</span><span class="arr">→</span></div>
<div class="node acc">Used ticket<span class="sub">no reuse</span></div>
</div>
<div class="branch">
<span class="lab">↓ 18:00 cutoff</span>
<div class="node warn" style="max-width:340px">Expired ticket<span class="sub" style="color:var(--warn)">no late entry</span></div>
</div>
</div>
<p class="fig-cap">State diagram. Ticket 7 moves from Anna to Ben with a transfer. The ticket keeps one identity. A check-in sets the state to Used. The 18:00 cutoff sets every remaining Active ticket to Expired.</p>
</div>
<div class="tbl-wrap">
<table>
<thead><tr><th>Rule</th><th>Specified behavior</th></tr></thead>
<tbody>
<tr><td>R1 Issue</td><td>Only Nora may issue tickets, and only before 17:30. Each ID from 1 to 30 permits one issue. A consumed ticket does not restore the issue capacity.</td></tr>
<tr><td>R2 Transfer</td><td>The owner or an authorized transfer operator may transfer an Active ticket before 17:30. Transfers stop at 17:30.</td></tr>
<tr><td>R3 Consume</td><td>From 17:30 inclusive to 18:00 exclusive, Mei may submit the signed approval of the current owner. A successful check-in sets the ticket to Used and removes it from circulation.</td></tr>
<tr><td>R4 Reject invalid action</td><td>A wrong owner, an unauthorized operator, an invalid time or a status that is not Active causes a rejection with no state change.</td></tr>
<tr><td>R5 Close</td><td>At 18:00, each remaining Active ticket becomes Expired. Used and Expired tickets cannot transfer and cannot authorize entry. This pilot has no override.</td></tr>
</tbody>
</table>
</div>
<div class="prose">
<p><b>Method:</b> define the permitted state transitions and the conditions for each transition. A transfer changes the ownership and keeps the total supply.</p>
<p><b>Output:</b> agreed rules and state diagram.</p>
</div>
<div class="gate">
<b>PHASE COMPLETE WHEN</b>
The specification gives one clear result for Ticket 7 and for all tested cases.
An ambiguity or a failed case returns the work to this phase.
</div>
</section>
<!-- ================= PHASE 3 ================= -->
<section class="sec" id="phase3">
<div class="sec-h"><span class="n">03</span><h2>MODELING & VALIDATION</h2><span class="rule"></span></div>
<div class="prose">
<p class="first"><b>Objective:</b> show that the rules keep the capacity and give the expected result for valid,
invalid and boundary cases. <b>Input:</b> rules R1–R5, 30 issued tickets and Ticket 7 owned by Anna.</p>
</div>
<p class="kicker">REFERENCE TEST CASES</p>
<div class="tbl-wrap">
<table>
<thead><tr><th>Test</th><th>Input</th><th>Expected result</th></tr></thead>
<tbody>
<tr><td>T1 Capacity</td><td>Issue ticket 31 after IDs 1–30</td><td>Reject; the lifetime issued count stays at 30</td></tr>
<tr><td>T2 Transfer</td><td>Anna → Ben, ticket 7, 16:00</td><td>Allow; Ben owns ticket 7</td></tr>
<tr><td>T3 Former owner</td><td>Anna signs for ticket 7 at 17:35</td><td>Reject; Anna does not own the ticket</td></tr>
<tr><td>T4 Single use</td><td>Ben signs; Mei submits at 17:35</td><td>Allow; ticket 7 becomes Used</td></tr>
<tr><td>T5 Replay</td><td>Repeat ticket 7 at 17:36</td><td>Reject; no second admission</td></tr>
<tr><td>T6 Boundaries</td><td>Transfer at 17:30; use at 17:29:59 / 17:59:59 / 18:00</td><td>Reject; reject / allow / reject</td></tr>
<tr><td>T7 Operator permission</td><td>Omar submits instead of Mei</td><td>Reject; no state change</td></tr>
</tbody>
</table>
</div>
<div class="card fig">
<div class="chart">
<div class="legend">
<span><i class="swatch sw-used"></i>Used</span>
<span><i class="swatch sw-active"></i>Active</span>
<span><i class="swatch sw-exp"></i>Expired</span>
<span class="y-cap">Tickets · total 30</span>
</div>
<div class="bars">
<div class="chart-col">
<div class="chart-bar"><span class="seg active" style="--h:100">30</span></div>
<div class="xl">17:29</div>
</div>
<div class="chart-col">
<div class="chart-bar">
<span class="seg used" style="--h:33.3">10</span>
<span class="seg active" style="--h:66.7">20</span>
</div>
<div class="xl">17:35</div>
</div>
<div class="chart-col">
<div class="chart-bar">
<span class="seg used" style="--h:80">24</span>
<span class="seg active" style="--h:20">6</span>
</div>
<div class="xl">17:50</div>
</div>
<div class="chart-col">
<div class="chart-bar">
<span class="seg used" style="--h:80">24</span>
<span class="seg exp" style="--h:20">6</span>
</div>
<div class="xl">18:00</div>
</div>
</div>
</div>
<p class="fig-cap">State trace from the reference model. The total stays at 30 tickets at each point in time. At the close, 24 tickets are Used and 6 tickets are Expired.</p>
</div>
<div class="prose">
<p><b>Method:</b> run the defined test cases and state transitions in a small Python reference model. The model checks the specification and the accounting logic, not the production code.</p>
<p><b>Output:</b> test results and a state trace that shows 24 Used tickets and 6 Expired tickets, with a total issued supply of 30.</p>
</div>
<div class="gate">
<b>PHASE COMPLETE WHEN</b>
All tests agree with rules R1–R5 and keep the 30-ticket invariant.
A failed case returns the work to Phase 2. Then the affected tests run again.
</div>
</section>
<!-- ================= PHASE 4 ================= -->
<section class="sec" id="phase4">
<div class="sec-h"><span class="n">04</span><h2>IMPLEMENTATION & LAUNCH</h2><span class="rule"></span></div>
<div class="prose">
<p class="first"><b>Objective:</b> change the accepted specification into production behavior.
<b>Input:</b> rules v1.0 and tests T1–T7.</p>
</div>
<div class="card fig">
<div class="flow">
<div class="row">
<div class="node">Ben presents<span class="sub">ticket 7</span></div>
<div class="edge"><span class="arr">→</span></div>
<div class="node acc">Mei requests<span class="sub">check-in</span></div>
<div class="edge"><span class="arr">→</span></div>
<div class="node">Check owner,<span class="sub">time and status</span></div>
</div>
<p class="split-hint">↓ result of the three checks ↓</p>
<div class="row">
<div class="opt">
<span class="lab warn">any check fails</span>
<div class="node warn">Deny entry<span class="sub" style="color:var(--warn)">keep the state</span></div>
</div>
<div class="opt">
<span class="lab acc">all checks pass</span>
<div class="node acc">Record Used<span class="sub">then admit</span></div>
</div>
</div>
</div>
<p class="fig-cap">Ben signs the approval. Mei submits it. A screenshot gives no entry. The application shows Admit only after the network accepts the check-in transaction.</p>
</div>
<p class="kicker">DEVELOPER HANDOFF EXAMPLE</p>
<div class="tbl-wrap">
<table>
<thead><tr><th>Item</th><th>Specified behavior</th></tr></thead>
<tbody>
<tr><td>Action</td><td>Check in ticket 7 for Atlas Workshop 01 at 17:35 UTC</td></tr>
<tr><td>Pre-state</td><td>Owner = Ben; status = Active; authorized operator = Mei</td></tr>
<tr><td>Authorization</td><td>Ben signs an approval that binds the event, the ticket, the owner, the operator, the deployed contract and the network. The approval expires at 18:00.</td></tr>
<tr><td>Success transition</td><td>Set the status to Used; remove the circulating ownership; increase the used count; emit a check-in record for ticket 7.</td></tr>
<tr><td>Failure behavior</td><td>No state change; the application displays Denied; the operator does not admit the guest.</td></tr>
<tr><td>Implementation constraints</td><td>Apply the same time boundary to every transfer path; limit the lifetime issuance to 30; make the consumption and the use record atomic.</td></tr>
</tbody>
</table>
</div>
<div class="prose">
<p><b>Method:</b> implement and test the contract and the application logic. Review the custom authorization and signature flows. Rehearse the check-in process. ERC-721 and OpenZeppelin give the base components. The event rules go on top of that base.</p>
<p><b>Output:</b> reviewed release, test evidence, deployment record and operator instructions.</p>
</div>
<div class="gate">
<b>PHASE COMPLETE WHEN</b>
The reviewed release is deployed, Nora accepts it and Mei rehearses it with success.
A coding defect stays in this phase. A change to the intended behavior returns the work to Phase 2 and Phase 3.
</div>
</section>
<!-- ================= PHASE 5 ================= -->
<section class="sec" id="phase5">
<div class="sec-h"><span class="n">05</span><h2>MONITORING & ITERATION</h2><span class="rule"></span></div>
<div class="prose">
<p class="first"><b>Objective:</b> show that the live operation agrees with the specification.
<b>Input:</b> the deployed release, the check-in records and the Phase 3 accounting invariant.</p>
</div>
<p class="kicker">EVENT REVIEW EXAMPLE</p>
<div class="tbl-wrap">
<table>
<thead><tr><th>Metric</th><th>Observed record</th><th>Assessment</th></tr></thead>
<tbody>
<tr><td>Tickets issued</td><td>30</td><td>Inside the lifetime issuance limit</td></tr>
<tr><td>Successful unique uses</td><td>24</td><td>24 admissions recorded</td></tr>
<tr><td>Unused at the close</td><td>6 Expired</td><td>24 Used + 6 Expired = 30</td></tr>
<tr><td>Duplicate requests</td><td>2 rejected; 0 successful</td><td>The single-use constraint held</td></tr>
<tr><td>Closing boundary</td><td>18:00 UTC; 0 later successes</td><td>No admission at or after the cutoff</td></tr>
</tbody>
</table>
</div>
<div class="card fig">
<div class="flow">
<div class="row">
<div class="node">Any duplicate<span class="sub">successful entry?</span></div>
<div class="edge"><span class="lab warn">yes</span><span class="arr">→</span></div>
<div class="node warn">Stop admissions<span class="sub" style="color:var(--warn)">and investigate</span></div>
<div class="edge"><span class="arr">→</span></div>
<div class="node">Fix and retest<span class="sub">Phase 4</span></div>
</div>
<div class="row">
<div class="node acc">No duplicate<span class="sub">continue the checks</span></div>
<div class="edge"><span class="lab acc">no</span><span class="arr">→</span></div>
<div class="node">Closing review<span class="sub">24 used + 6 expired</span></div>
<div class="edge"><span class="arr">→</span></div>
<div class="node">Change a rule?<span class="sub">Phase 2 then Phase 3</span></div>
</div>
</div>
<p class="fig-cap">Monitoring decision path. A duplicate admission stops the door and returns the work to Phase 4. A rule change returns the work to Phase 2 and needs new validation in Phase 3.</p>
</div>
<div class="prose">
<p><b>Method:</b> reconcile the recorded check-ins with the physical admissions. Review each rejected or unmatched attempt.</p>
<p><b>Output:</b> event review and a recorded decision about mechanism changes.</p>
<p><b>Example decision:</b> keep the single-use rule. Six unused tickets alone do not justify a change to the entry window. First find why those attendees did not check in.</p>
</div>
<div class="gate">
<b>PHASE COMPLETE WHEN</b>
The totals reconcile, each exception has an owner for follow-up and the review is accepted.
A code defect returns the work to Phase 4. A rule change returns the work to Phase 2 and gets new validation in Phase 3.
</div>
</section>
<!-- ================= TRACEABILITY ================= -->
<section class="sec" id="trace">
<div class="sec-h"><span class="n">06</span><h2>END-TO-END TRACEABILITY</h2><span class="rule"></span></div>
<div class="prose">
<p class="first">Each requirement maps to a design rule, a model test, an implementation instruction and a live control.</p>
</div>
<div class="tbl-wrap">
<table>
<thead><tr><th>Requirement</th><th>Design rule</th><th>Validation</th><th>Implementation control</th><th>Live control</th></tr></thead>
<tbody>
<tr><td>Maximum 30 seats</td><td>R1: lifetime issuance ≤ 30</td><td>T1: ticket 31 rejected</td><td>Limit the total issuance, including consumed tickets</td><td>Issued count ≤ 30</td></tr>
<tr><td>Transfer the access right</td><td>R2: transfer before 17:30</td><td>T2–T3: Ben gains the ownership; Anna loses it</td><td>Resolve the current owner at execution</td><td>Check-in approvals match the current owner</td></tr>
<tr><td>One admission per ticket</td><td>R3–R4: consume one time</td><td>T4–T5: the first use succeeds; the replay fails</td><td>Consume the ticket and record the use atomically</td><td>0 duplicate successful uses</td></tr>
<tr><td>Close at 18:00</td><td>R5: expire the remaining Active tickets</td><td>T6: 17:59:59 succeeds; 18:00 fails</td><td>Use one UTC cutoff on all paths</td><td>0 successes at or after 18:00</td></tr>
<tr><td>Only Mei may check in</td><td>R3–R4: authorized operator only</td><td>T7: Omar rejected</td><td>Verify the operator permission and the owner approval</td><td>Mei submits every successful check-in</td></tr>
</tbody>
</table>
</div>
<p class="kicker">CLIENT OUTPUTS BY PHASE</p>
<div class="pillars">
<div class="card pillar"><h3>PHASE 1</h3><p>Requirements brief and responsibility map.</p></div>
<div class="card pillar"><h3>PHASE 2</h3><p>Agreed rules and state diagram.</p></div>
<div class="card pillar"><h3>PHASE 3</h3><p>Reference tests and results.</p></div>
<div class="card pillar"><h3>PHASE 4</h3><p>Developer handoff and, inside the agreed scope, release evidence.</p></div>
<div class="card pillar"><h3>PHASE 5</h3><p>Operating review and final decision record.</p></div>
</div>
<p class="note">
A standard token design engagement covers Phase 1 to Phase 3 and a defined developer handoff.
Production development, independent security review, deployment, application development and
live operations have a separate scope.
</p>
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