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Price Stability
We are using many mechanisms to control the price and reduce pumps, dumps and continuous price decline that has happened to some blockchain games.
70% of all the tokens that players spend in the game will burn and the remaining 30% will move back to the reward pool. The last token will be mined in the 2034 year or later. After that, we use the reserved token pool to continue the game's economy.
Compound Interest is the biggest issue in blockchain games. In the beginning, players with little investment, reinvest their income into the game which is good for the game's economy. After a while, they will reach an enormous income that grows faster than the community. And when they start cashing out, it will cause the token price to decrease continuously.
To prevent this issue and control token supply in the market, we generate limited lands to mine per day. So, there are limited tokens to mine every day like most blockchain coins. If all available lands get sold out, Players have to place bids for the next land so players have to pay more tokens to own a land to begin mining. This will increase the demand for the token and decrease its supply.
At the beginning of the game, 2000 lands (Common, Uncommon, Rare, and Legendary) will be available for buying every day. These lands have 1,300,000 tokens in total to mine. After each cycle, tokens of new lands will be reduced by 5%. Token mining will also reduce by 5% after each cycle too. The duration of the first cycle is at least 10 days up to all the lands sold out, the second cycle is 11 days, and every cycle is one day longer than the previous one. Cycle duration may become longer if all of the lands don't get sold out.
Chain of Legends deflationary system is limiting token mining, and supply, burning tokens aggressively and it’s reducing mining rewards over time. As a result, game tokens will become more and more rare and valuable. As NFTs are priced by game's token, they will become more valuable over time even more valuable than tokens. for example, a legendary land in the early cycles of the game has approximately 14,000 tokens but a legendary land in cycle 7th has approximately 10,000 tokens. So, Thanks to the deflationary system buying and holding game tokens is very profitable and game NFTs are even more profitable.
Last modified 9mo ago