Staking
This section details how owners of our flagships NFT collections Genesis CryptoTrex and CryptoTrex VX can benefit from staking their holdings.
Objectives and Constraints
Our team is aware of the current staking-for-token approach and actually considered/analysed whether it would be suitable and/or beneficial for our long-term goal of CryptoTrex to build an ecosystem where everyone gets to have fun while benefitting.
One of the things we're most concerned about and have observed to have happened in other projects that take the staking-for-token approach is inflation and de-valuing of their tokens due to increases in token supply without increases in ecosystem activities. This kind of inflation not only leads to a near-term consequence of de-valuing of token (which might be alright all things considered), but also a more serious long-term consequence of driving folks who are new to the ecosystem away.
To summarise, our goal is to reward the early believers in CryptoTrex team and project without compromising on the sustainability of $FOSSIL tokens.
Staking Mechanism
This section explains what our staking mechanism is like and our thought process behind it.
Genesis CryptoTrexes Staking
Genesis CryptoTrexes are special self-replicating reptiles who are able to fertilize and lay eggs by themselves.
This means that every Genesis CryptoTrex is able to give its owner a dino egg NFT according to the below success rate and schedule.
| Genesis Rexes Required | Egg Amount | Success Rate | Schedule |
|---|---|---|---|
| 1 | 1 | 100% | Every Sunday 23:59 UTC |
VX CryptoTrexes Staking
VX CryptoTrexes, being 3D instead of 2D, are less powerful than Genesis CryptoTrexes who would only be able to breed in a normal way, which requires 2 Trexes with a non-guaranteed success rate.
This means that for every 2 unique VX CryptoTrexes that someone has, he/she would be able to earn a dino egg NFT according to the below success rate and schedule.
| VX Rexes Required | Egg Amount | Success Rate | Schedule |
|---|---|---|---|
| 2 | 1 | 40% | Every Sunday 23:59 UTC |
Rationale
As we have mentioned in our goal, we want to keep inflation in check, or at least sustainable/beneficial to the ecosystem that we're building. In economic theory, there're 2 ways inflation can happen:
- Increase in money supply without improvement in productivity resulting in money being cheaper in relation to goods and services, hence inflation. An easy example for this would be the money printing spree for stimulus from The Fed since the start of COVID pandemic pulling the prices of everything up. This is bad because it only benefits those who are holding assets at the expense of everyone else.
- Increase in productivity and thus the goods and services supply making goods and services cheaper driving up demand for these goods and services hence inflation. An easy example of this would be MacDonald streamlining the process of preparing food thus bringing down the cost of eating out. This is beneficial for the whole economy as cheaper prices would drive more economic activities resulting in organic growth.
The CryptoTrex team would like to take second approach of rewarding NFT owners with game assets (or the "goods" that was mentioned in the economic theory points), effectively making Genesis and VX CryptoTrexes productivity-increasing economic machines that can drive down the barrier of entry for new comers to eventually expand the amount of activities in our ecosystem.
This way, we would have a more self-sustainable economy and be able to raise the intrinsic value of our tokens.