CUIP-050 - Deflationary In-game Token Burn [Pass]


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.


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.


$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.


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