Prospectors (PGL) Tokenomics and Governance
Tokenomics is a field that has evolved over the past couple of years, and though it’s a part of economics itself, it deals with the issuing and distribution of cryptocurrencies.
Token metrics are vital to tokenomics, acting as strong indicators for token projects.
When correctly comprehended, they can be used to measure a project’s chances of success and estimate its future sustainability.
Tokenomics is the art behind distributing tokens to incentivize users to use that token which is crucial to building a lively community that boosts adoption.
Tokenomics involves the following factors:
Purpose: what’s achieved by this token?
Functionality: how does it achieve it?
Utilization: is it actively being used and how?
Distribution: how’s the token distributed?
In this article, we’ll take a look at Prospectors’ tokenomics and how it works.
If we have a look at the infographic above, it shows us that the total supply of PGL is 220 million, out of which 50% or a 110 million are in circulation and the rest of the tokens are locked in the game and have to be mined. Do keep in mind that the initial gold available when the mainnet launches will be 10 million PGL. As more and more land gets unlocked in the game, more PGL will automatically be released.
You might be wondering how does this token flow across the game?
The Prospectors' world uses a real economic model and functions because of the free market laws. Players can obtain resources, land, and tools. They also have to pay taxes for commercial activity and land use. These factors power the development of the game.
The state is a decentralized autonomous organization (DAO), which is the governing body in Prospectors where holders of the PGL tokens act as the governing body. The state is allocated a budget which is controlled by the token holders.
Initially, the dapp developers will control the state. As the number of users grow to a level high enough, and the game economics and dapp infrastructure stabilizes, the governance/control of the state will go to the token holders.
The state regulates the following issues of the game:
Addition of new features
The more PGL tokens you have staked, the more voting power you have over others when it comes to making regulatory decisions in the game.
The state earns revenue when players make payments for rent, registration fees of land, income taxes (commercial activity), and auctions.
Rent payments for land — every player has to pay tax on land or for renting land.
Income tax — all profits of the players are taxed. The tax collected on a transaction is equally distributed among the funds.
Auction property sales — the state can hold an auction for selling or leasing confiscated land which includes immovable and movable assets located on the land at the time of confiscation. The bidding will go on for a certain period of time and the player with the biggest bid wins the assets.
Registration fee — a one time fee a player makes when renting or purchasing a piece of land.
The state distributes its revenue so that the users of the dapp can be incentivized and can sustain for the long term.
The state allocates its revenue between several funds which includes the fund of new lots, the fund for development and expenses, fund of rewards for staking, a fund for destruction and fund for referrals.
When a transaction takes place in the game, the taxes are divided 1% equally among the funds. For example, if a transaction takes place in which the total amount was 100 gold, 5 gold will be taxed where 1 gold will go to all of the 5 funds mentioned in the paragraph above. The total taxes collected by the state will be equally distributed to the 5 funds mentioned above. This should clarify a lot if you are confused about the tokenomics. Leave a comment below if you still have doubts.
Fund of new lots — this fund contains gold which is locked in the game. When the fund accumulates a high enough amount, the state can decide whether to add new land or not.
Fund for burning PGL — this fund will be used to burn PGL tokens resulting in a deflationary token.
Fund of rewards for staking — those who stake PGL tokens will receive daily rewards in PGL depending on the amount they have staked.
Fund of development — the money in this fund will be used for the development for adding new features, scaling, marketing and support.
Fund for referrals — this fund will be used to reward people who have shared their referral link for others to join and they will be receiving benefits from this.
The tokenomics of Prospectors looks sound indeed. The aspects of the token being deflationary, used for governance, earning rewards, being locked up for a long period of time are very appealing indeed. So for those of you who have doubts, I can say judge this project in 2020.
If you haven't read my article on how to get started with no investment, you can read it here.
That’s going to be it for this article and as always guys, stay safe and don’t get rekt.
Use my Referral link to support my Blog:
EOS Name Service (get a 5% discount on purchasing EOS account names) — https://www.eosnameservice.io/?ref=illuminati.e
Bitcoin Donation Address: 3BAMAjM812NfTJp197HB5jE3b7QjydSRxm
Ethereum Donation Address: 0x9D08CE9b061014BcaAbb8E7b0bA40050eB35DF4b
Ripple (XRP) Donation Address: r3wiqBTo6rDB8gBsSuP9fYBnG28QfmKndZ
Litecoin Donation Address: MWdsozGe7hktPQMkoGb7Y62hi6bd6eYsdn
EOS Donation Address: illuminati.e
DISCLAIMER: This is not to be taken as financial advice. My views in this article are personal opinions based on my research and should not be considered as financial advice. Always do your own research.