Abstract
In addition to (and separate from) the recently proposed Buyback & Burn system, we propose embedding further deflationary mechanisms into Crypto Unicorns’ tokenomics. In conversations with the LG team, there is a mutual desire to explore building a burn mechanism based on player-driven, in-game spending activities.
We propose that when $CU is used in-game it is burned from supply on a weekly basis.
Motivation
Deflationary tokenomics are straightforward to understand and can attract more participants to our ecosystem. To date, over 64.8M $RBW (6.48M $CU) has been utilized by players in the game. Linking token deflation to in-game usage naturally reduces the total supply of $CU, aligning with increased activity across our growing ecosystem.
Details
$CU has extensive utility throughout our core game loops. Here are some examples:
- Marketplace Purchases: When players buy Berries or any “buy only” item from the Rainbow Token Marketplace.
- Marketplace Fees: When players buy or sell items via the Rainbow * Token Marketplace (RMP) Automated Market Maker (AMM) in-game.
- Unicorn Breeding: When players spend $CU to breed unicorns.
- Unicorn Evolution: When players spend $CU to evolve unicorns.
- Crafting: When players spend $CU to craft in-game items.
If this proposal is approved, we will begin with a significant retroactive token burn, removing approximately 6.48% of the total supply (edited from 6% previously to include the Shadowcorn Rituals figure h/t @timetraveler). These tokens will be burned from the Treasury and Staking pools. Moving forward, we will burn $CU on a weekly basis based on in-game activity.
Conclusion
Implementing a system that ties token burn to in-game usage will further strengthen our tokenomics by creating a deflationary model, supporting the value of $CU, and enhancing our ecosystem’s appeal. We encourage the DAO to vote in favor of this proposal.
Updated Staking Impact for visibility from the comments:
| Staking Allocation | Amount | Number of Weeks Left | Exact End |
|---|---|---|---|
| Allocation Remaining | 13,199,932.90 | 268 | July 18, 2029 |
| Allocation After 4M Burn | 9,199,932.90 | 186 | December 22, 2027 |
Snapshot: Snapshot