Play to Earn
| Tokens Allocated | % of Max Supply |
|---|---|
| 240,000,000 | 48% |
48% of $FOSSIL tokens max supply will be allocated for Play to Earn rewards.
Players will receive some $FOSSIL tokens after winning a battle.
The reason we chose a limited supply for something that could be played unlimited times is to combat inflation.
But limiting supply could possibly lead to a situation where rewards becomes 0 when all tokens have already been minted. To overcome this problem, we simply create features that requires burning of $FOSSIL.
As defined in Tokenomics Overview. There are multiple features that require burning your $FOSSIL,
- Leveling up Dinosaurs
- Reviving Dinosaurs
- Breeding Dinosaurs
- Archeological Excavations
Burned tokens will be allocated back to the Play to Earn token pool to replenish the pool.
Thresholding Mechanism
However, even with a burning mechanism, we are still anticipating a case where tokens are not being burned as fast as they are minted, causing the same problem of no token left to mint.
To combat this problem, we borrow a part of this concept from our forefather Bitcoin called Halving where mining rewards are halved for every n number of blocks.
However, since we have a burning system, the mint rate would eventually be a lot slower than the burn rate if the rewards keep being halved.
Therefore, we adjust the Halving system to fit our usecase. Instead of halving every n number of blocks, we have dynamic reward calculation based on the amount of circulating tokens.
(numbers are not final, just for visualization purposes)
| Tokens in circulation | Battle Rewards |
|---|---|
| 5,000,000 | 5 |
| 10,000,000 | 2.5 |
| 20,000,000 | 1.25 |
| 40,000,000 | 0.75 |
| 80,000,000 | 0.375 |
| 160,000,000 | 0.1875 |
| 320,000,000 | 0.09375 |
| 500,000,000 | 0.046875 |
This way, if we have 4 million tokens in circulation, players will receive 5 $FOSSIL per win, and if the circulating supply rises to 6 million tokens, players would get 2.5 $FOSSIL per win. But if a lot of players are suddenly leveling up their Dinosaurs (burning some $FOSSIL) and reducing the circulating supply back to 4.5 million tokens, the reward per win would be back to 5 $FOSSIL.
We designed this mechanism with these things in mind:
- Inflation resistance
- Incentive to the community for spending the tokens