Degen Whitepaper
  • Overview
  • Roadmap
  • Tokenomics
    • Tokenomics De-Inflation System Explanation
  • Project Information
  • In-Game Systems
  • Additional Future Features
  • Appendix
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  1. Tokenomics

Tokenomics De-Inflation System Explanation

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Last updated 1 year ago

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:

  1. 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.

  2. $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.

  3. 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.

  4. $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.

  5. 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.

Full Cycle of De-Inflation System