🤓 To ensure the longevity of the project, some economic principles were considered. The token burning model that we implemented since the beginning of the project is crucial to guarantee the healthy longevity of the supply.
☝🏻 In this way, the vast majority of all fees will return to the 3 types of tokenomic incentive of the ecosystem:
1- Burn (destruction of tokens – scarcity mechanism); 🔥
2- Reward pool (short-term incentive for players – High liquidity); 🤽🏻♀️
3- Staking Fund (Long-term incentive for Holders – low liquidity by the Lock Up mechanism). 💰
🙅🏻♂️ But, this is still not enough. It is necessary to establish solid economic foundations.
In monetary politics there are 2 extremely important variables: the monetary base and the interest rate. 🧐
〽️ As part of the lack of professionalisation of the cryptomarket, some teams fail to deliver the basics in economic terms, such as the reward pool token issuance targets (the main relationship between circulating supply and total supply).
🤔 The fact is that many groups stipulate rewards in token units without considering the number of players, the average purchase amount of NFTs (box) over time, the growth of this amount of players over a period “X” and the payback (mistakenly called ROI by many), which is the issuance itself. In fact, it is not a simple calculation, but it is extremely essential.
The rampant issuance of tokens is one of the major structural problems of many NFT games, which in turn, end up making desperate “Nerf” decisions and imposition of fees outside the market reality to contain the lack of control, and at this point, cause crises. of prices and mistrust of the community, which can make the game die. 💀
😔 There is no smooth transition of Nerf and rates as there was no upfront planning or process control.
As part of the professionalism of the Clash team, the team will soon reveal annual emissions targets over a 10-year horizon. 😱
The calculations will be made by our specialists based on these variables mentioned above and others, considering several hypothetical scenarios, control metrics and response actions for each scenario. 🧐
🏁 The great challenge of any economic system is to intelligently reconcile short-term and long-term incentives.
🤏🏻 It is intuitively known that a long-term investment should be better rewarded than a short-term one, because the longer one assumes the time variable, which brings a greater risk than the shorter one.
However, almost all NFT games do not have solid plans for the long term. 🙁
This extreme short-term mindset causes games to have smaller and smaller paybacks to stay competitive, making it increasingly unsustainable. 💸
🏎️ Clash will break this vicious cycle by soon presenting a plan that is the exclusive club for Holders, reconciled with the project's staking fund. Many forget that a strong base of project holders guarantees a high base price and therefore a strong market capitalisation.
🤔 An interesting point is that to be eligible for the exclusivity club, the user must have a specific amount of Clash to hold and another specific amount of NFTs while being a member of the club, which will also require a specific amount of certain rarities according to the plan within the club.
This strategy aims to generate demand for the game's main assets (Clash and NFTs), as well as create even greater added value for rarities. In this way, all types of investors will be together for a more lasting game. More details coming soon.⏱️
According to each exclusivity club plan, there will be specific benefits for members. In addition to the financial advantages in Clash tokens, there will be several other incentives within the ecosystem (more details coming soon). 👑
This will make the holders stay longer in the project and the exclusivity Club will be increasingly desired by market players, strengthening the capital base purchased within the project. 🤩
🚫 There is no doubt that the biggest source of currency revenue games have is the sale of NFTs. The problem is that most game teams keep these recipes, making the reward pool bleed too fast.
👉🏻 At Clash, these fees will be redirected entirely to the 3 tokenomic incentives in different proportions: the highest percentage will go to the Staking Fund; the second largest for the reward pool; the smallest for Burn. This means that all Clash will return in mass to the ecosystem, ensuring the profitability of holders, ensuring healthy feedback from the reward pool and still creating scarcity.
It is also worth mentioning that the team has giant and renowned investors in the market who are very confident in the project and are entering large amounts of investment with a long-term mindset, which will ensure an ecosystem with a healthy price over the years. 📈
A game by definition should always be playable. Players must invest to play and be able to earn rewards if they are successful. Investors, on the other hand, have two options: support the Clash in the long term by becoming a Stakeholder or provide the cost-effective loan service of their NFTs, in this way, they will be guaranteed satisfactory returns.☝🏻
🧐 Farm mode, on the other hand, does not have any relevant economic function in itself, as the investor does not need to commit to the currency in the long term, while he does not even need to play (take risk) to have a return on investment. Therefore, it ends up greatly rewarding investors who do not have a long-term commitment or who provide some relevant service (loan via scholarship), which causes problems in the medium-long term for the economic health of the game.
For this reason, over time a gradual and smooth transition to race mode will be prepared, so that, in fact, through the logic of effort, merit and work, the game's rewards are intelligently distributed. 🏃🏻♀️ 🏃🏻♂️
We've already had examples of poorly structured games that broke, as well as some well-crafted games that also ended up breaking. 😰
🎮 The biggest differential of Clash Of Cars is the team. The team is very well structured and in fact a company with renowned professionals in their fields. In the other games, even though they were well designed, they didn't have a team that was 100% professional and focused on the project. 🫂
The Clash Of Cars team's vision is long term and aims to set a new standard in the history of NFTs games. Furthermore, being a creative and innovative team, it will always be updating according to market demands in a sustainable way. "This is just the beginning!" 😍