I. WHAT ARE TOKENOMICS IN GAMEFI?
Tokenomics in gamefi is likened to a kind of monetary policy applied to game projects on blockchain, helping to provide information for analyzing factors and context before investing in those game projects, and at the same time regulating the cash flow in the ecosystem of gamefi.
II. CHART OF TOKENOMICS
- Total supply: The total amount of tokens in circulation and locked minus the number of tokens burned.
- Maximum supply: The total supply that will exist, including those tokens that will be mined or available in the future.
III. THE IMPORTANCE OF TOKENOMICS
Tokenomics distribution helps gamefi projects distribute their tokens to potential users. Without distributing its coin to interested users, the project is likely to fail because no one wants to use it.
IV. WHAT IS A DUAL TOKEN IN GAMEFI?
Dual-token blockchain games are games that use two different tokens in a game’s economic model to avoid regulatory compliance issues and split the in-game ecosystem into two tokens to increase the likelihood use of in-game tokens.
1. The mechanism of dual-token:
Games with two types of tokens is usually separate between the governance token (governance token) and the token circulating in the game’s ecosystem (In-game token).
- Governance token: mainly used to encourage players to contribute to community governance thereby contributing to the development and value of the project.
- In-game token: mainly used for in-game quests, trading, daily quests, leveling up, etc. There is often no set maximum number of issues, and some of them do not even need to be a cryptocurrency on the blockchain and are often not traded on the secondary market.
2. Advantages and disadvantages of dual-token:
The two-token model also has obvious advantages and disadvantages compared to the single-token model.
- The main advantage: is the stability of the economic system in the game. The model allows players to play without being affected by the fluctuating price of the main token. Separating tokens in the game also allows developers to adapt the economic model of different tokens dynamically.
- The disadvantage: it increases the difficulty for those who are not familiar with the blockchain and crypto fields, so it requires participants to have a certain amount of knowledge.
V. PROJECTS USING A DUAL-TOKEN MODEL
1. Axie Infinity:
Axie is a good example of the Dual Token model in Gamefi. Axie offers two tokens: SPL and AXS, both offered as incentives to players.
- AXS: AXS provides value to the Axie Infinity ecosystem, where players can purchase tokens directly from crypto exchanges and AXS token holders can participate in in-game governance activities and stake their tokens on the platform to gain passive rewards.
- SLP (Small Love Potion): utility token with unlimited supply that can be used by Axie Infinity players to perform in-game tasks such as paying breeding fees for Axies (game characters) and buying Axies from the market.
Defihorse has decided to build a dual-token economy with another token besides $DFH for a better incentive structure.
- Rocket Race ($RR) — In-game official token, which is supposed to be a hedge against inflation for our ecosystem and protect the interests of our investors. It can be used as Race Entry Fees, Breeding fees, In-game Earn, and Rewards.
- DFH is the horse racing games’ main utility token and is being used across all in-game Play-To-Earn activities.
3. Dragon War
Tokenomics of Dragon War sometime would be similar to the same turn-based Game category and we should learn from the best.
- $DRAW: Being the living versatile Token that represents Dragon War, the $DRAW Token is said to be the highest return-on-investment currency in the Dragon War. Players must use DRAW tokens to purchase Heroes, and Dragons in the marketplace and get DRAW from the enemy when they win in the battle. You can trade on Raydium.
- $ERA: Dragon War’s second token of Dragon War.
Utilities of $ERA:
- Purchase NFTs in-game
- Event fee
Purchase NFTs in-game: Players can buy other NFTs in-game such as Skill cards, Heroes’ equipment items, and consumable items…that are used for strategizing the battle.
Upgrade: To claim victory, players must upgrade Char, item, or fusion of your Dragons, which will become huge advantages in defeating enemies.
Event fee: Can be used to upgrade later, when we have PvP mode ready and PvP tournament, it can be used as a fee to participate in these events.
$ERA is the 2nd token in Gamefi Dragon War’s tokenomic system, which will be listed on DEX and be planned for the pool and steak systems. The official info will be communicated to you as soon as possible (expected in December 2022).
Get the chance to earn 200 $ERA? Join the event at https://official.dragonwar.io/3Fcs38S
ABOUT DRAGON WAR
Dragon War is a Turn-Based Strategy Game based on Blockchain technology. In this game, you can Buy Heroes, Summon Dragon to form a team to battle with an NPC in PVE Function or another player in PVP Functions. You can earn token rewards from various activities in-game, and with the Marketplace, users can trade their NFTs with another user to get the token benefit.