Tokenomics De-Inflation System Explanation
Last updated
Last updated
The Degen project implements a tokenomics de-inflation system designed to create value and scarcity within the ecosystem while incentivizing active participation and engagement. Below is an explanation of how this system works:
Initial Launch of $DGN:
The $DGN token is launched as the primary currency within the Degen ecosystem, serving various functions such as governance, utility, and in-game transactions.
$DGN > NFT "Degen Alpha" (Burn $DGN to Get NFT):
Users have the opportunity to burn $DGN tokens to acquire NFTs from the "Degen Alpha" collection.
This process removes $DGN tokens from circulation, reducing the overall token supply and potentially increasing scarcity and value.
NFT "Degen Alpha" > $DUMB (Stake NFT to Earn In-Game $DUMB):
Holders of NFTs from the "Degen Alpha" collection can stake their NFTs to earn $DUMB tokens.
Staking NFTs incentivizes long-term holding and engagement within the ecosystem while providing users with a passive income stream in the form of $DUMB tokens.
$DUMB > NFT "Baby Degens" (Burn $DUMB to Buy Game Assets and NFTs):
Users can burn $DUMB tokens to purchase in-game assets, items, and NFTs from the "Baby Degens" collection.
Burning $DUMB tokens for these purchases removes them from circulation, contributing to the de-inflationary nature of the tokenomics system.
NFT "Baby Degens" > $DGN (Stake NFT to Get $DGN):
Holders of NFTs from the "Baby Degens" collection have the option to stake their NFTs to earn $DGN tokens.
Staking NFTs not only incentivizes long-term holding but also provides users with the opportunity to acquire $DGN tokens, further enhancing the tokenomics de-inflation system.
Overall, this tokenomics de-inflation system aims to create a self-sustaining ecosystem where token value is preserved and enhanced over time through strategic token burns, staking mechanisms, and the interplay between $DGN, $DUMB, and NFTs. It encourages active participation, rewards engagement, and fosters a vibrant and sustainable community within the Degen ecosystem.