the White Paper
What will determine the value of your token and the demand for your project in the future?
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Purpose of tokens
Medium of exchange
Most ecosystems need an internal accounting unit that is used for settlements between users and the system. Usually, a secondary token fulfills such a function, except for coins that are the main ones within the blockchain.
The right to receive the service
Users can save their tokens and get the opportunity to use the services of the ecosystem. For example, the number of services rendered may depend on the number of tokens saved. Tokens can also be used as a direct means of paying for services within the system. Services can be both digital and physical, for example, in the Dentacoin (DCN) project.
The main blockchain coin
In this case, the coin itself is not often charged with any functions and it serves as the main accounting unit within the blockchain to pay transaction fees and as a reward to the creators of blocks. Its value is created due to the value and popularity of the blockchain itself, or more specifically, the value of the blockchain is expressed in the value of its tokens. The value depends on the mining complexity as well.
The goals can be applied either separately or in any combination. Also, an ecosystem can have two or more interconnected tokens that perform different functions. The purpose of the token can change over time; for example, Bitcoin was created as a medium of exchange, but now, it is used to save investments.
The goals should not be taken literally; often at first glance, the token does not correspond to any of the listed goals, but upon detailed analysis, the correspondence becomes obvious.
The best and most successful solutions are born in a combination of several goals – namely, this is what Tokenomics is engaged in.
How is the work structured?
Detailed analysis of your future project
We will discuss and identify all the main features of your project and what users’ problems it should solve.
Analysis and comparison of similar projects
We will look at the market segments in this industry: which projects have already been implemented for the time being and which are planned to be started in the near future. We will compile the advantages of your project.
Development of initial theories
Based on the first two points, we will compile a list of possible theories. We will carry out the proofs and approvals. The result of this stage will be choosing the principal theory.
Elaboration of the theory chosen
At this stage, we carry out a full study of tokenomics based on the theory chosen. We make up our minds about the necessary technological solutions. We agree and approve them.
Design a White Paper
The final stage is the preparation of the so-called White Paper; this document contains a simplified business plan of the project and the stages of its implementation. The White Paper also contains a description of the features of the project and what problems the new ecosystem solves.
After going through each stage together, we will help you turn your initial idea into a full-fledged project concept
Tokenomics of the game
The game is based on the Axie characters
The characters are divided into several categories, and each category also has available improvements that the player can make for his/her Axie making it virtually unique. Also, the player has the opportunity to cross and multiply his/her characters.
The player can cross and enhance each character no more than 7 times, and the cost of the action in SLP tokens increases each time.
There are two types of tokens in the game
Small Love Potion (SLP)
These are utility tokens that are used to pay remuneration to winners and to pay for actions in the game, for example, during Axie multiplying.
Axie Infinity Shard (AXS)
These are governance tokens of the platform in the ERC-20 format. They are needed for:
— Governance: AXS holders can vote on governance issues;
— Staking: holders can stake tokens with an annual yield of about 40%;
— Payments: players can make in-game payments to purchase Axie, digital real estate, and in-game items.
Small Love Potion (SLP)
The tokens can be sold outside the game. This forms one of the fundamentals of the project’s tokenomics. These tokens are used to improve characters, the cost of which constantly increases, and this forms a continuing demand for this type of tokens, which also affects their value. To maintain a balance in the market, the tokens are burned after each multiplication.
Axie Infinity Shard (AXS)
These tokens have several differences from SLP tokens. These tokens are also used to improve characters, but unlike SLP, they are always spent in the same amount, and after improvement, these tokens are transferred to the needs of the community and are not burned. The tokens have a limited emission, and due to this, their value and price increase correspondingly.
The stage of attracting early investors is one of the important aspects of tokenomics in this project.
At an early stage, investors had the opportunity to buy AXS tokens several hundred times cheaper than they cost now. Since investors could not buy more than 15% of all number of tokens, which will become gradually defrosted until 2025, investors cannot critically influence the market, which certainly has a positive effect on the stability in the formation of prices of AXS tokens.
This mini analysis does not concern many of the nuances of the game, but it helps to understand the basic principles of the project’s tokenomics in general.