Understanding the Value of IG Gold

Intergalactic Gaming
Nov 7 · 5 min read

The price of IG Gold (IGG) tokens are determined by the market, with supply and demand playing a key role. We live in a value based economy, and this applies to the cryptocurrency industry. Any crypto-asset that does not serve the needs and wants of its intended audience will not gain adoption and will eventually fade.

We must therefore consider the fundamentals. Specifically, we must carefully look to use cases to truly understand the value of IGG and the extent to which this impact will have on the future demand for the token.

With the public beta due next month, this article has the objective of providing an introductory insight into where the value of IGG tokens lie as we remain dedicated to building a sustainable and healthy token economy.

Subscription Model

The IGGalaxy will primarily operate on a freemium subscription model, where users will be able to sign up and use basic features for free. If the user wishes to have access to more advanced features and benefits (when the full platform is released), they can do so by paying a subscription to upgrade to a premium account.

We must ensure that there is enough ‘free’ value for our target market to encourage them to want to sign up and experience the full platform. Equally, there must be sufficient additional value provided for premium users to encourage the purchase of a subscription. We look forward to sharing a greater insight into our subscription model in due course.

As a business, limiting the drop-off points for customers is key, so there must be no friction for purchasing subscriptions. Forcing users to use IGG tokens to pay for the subscription is currently not practical for a number of reasons. The concept of cryptocurrencies are still very much nascent, and is yet to be widely understood as a viable payment option; a seamless transition for our end users is paramount.

For this reason, we will allow users to purchase subscriptions via legacy payment methods — debit/credit cards or PayPal — but also allowing the ability to purchase subscriptions with IGG. In terms of the latter, we have committed to offering a discount to those that pay subscriptions with IGG.

Payment for subscriptions, in either fiat or IGG, will maintain value within the IGG token economy in the following ways:

  • An allocation of all fiat subscription payments will be used to buy IGG from exchanges to burn from the circulating supply.
  • IGG subscription payments will typically have deflationary mechanisms integrated so a portion of each payment received is automatically burned.
  • Incentivising customers to use IGG tokens for subscriptions at a discounted rate will create a demand for IGG, which in turn will have a significant impact on the sustainable growth of the IGG token economy, especially as the platform scales up.

Below, we have given a hypothetical outline of the potential impact of this subscription model:

  • 1,000,000 premium users paying a monthly subscription (£4.99):
  • 80% pay with fiat = £3,992,000/month
  • 20% pay with IGG at a 20% discount (£3.99) = £798,000 worth of IGG tokens/month. If the market value remains the same, this will be 11,575,282,854 IGG
  • 10% fiat payments used to buy IGG back and burn = £399,200
  • 5,791,382,562 IGG will subsequently be purchased back from the marketplace and burned if the market value remained flat during the buy-back. However, increased demand and deflationary mechanisms in place would naturally cause that price to rise
  • 10% IGG payments automatically burned = £79,800 worth of IGG tokens.
  • 1,157,192,575 IGG would subsequently be burned at this current market value

Tournament Organisers

Independent tournament organisers will benefit from our platform’s technical infrastructure. The IGGalaxy will make the process of organising and managing tournaments for popular esport titles easier.

Independent tournament organisers will benefit greatly from using IGG as a reward token for their competitions, making competitions more exciting and rewarding. Using IGG tokens, prize pool distribution becomes cost effective and instantaneous. Regardless of players’ geographical locations, the distribution of these rewards is seamless and automated.

As more independent organisers host competitions, offering IGG to reward participants, we can expect to see demand for IGG increase. For clarity, organisers must specify the prize pool distribution and pay the total reward pool into the tournament’s smart contract as part of the creation process, ensuring certainty of rewards for participating players and teams.

Team-Player Payments & Rewards

Teams will have access to our smart contracts, which are designed to make team/player agreement process as streamlined as possible. Most notably, the percentage of prize pool rewards players’ are eligible for will be agreed here.

Through this contract, we can also ensure the automatic distribution of IGG tokens earned in competitions to the players so that this agreement is always honoured. This is an issue that plagues the esports industry.

For example: an agreement between a team and a FIFA player:

  • Player will receive 90% of any IGG winnings earned on the platform.
  • Player competes in a tournament and wins the competition, earn 5,000,000 IGG for the team.
  • Automatic and instant distribution of 500,000 IGG to the team and 4,500,000 IGG to the player.

As teams and players acclimatise to cryptocurrencies, we can expect more to use the IGG token as a form of player payments and rewards.

Deflationary Mechanisms

As the platform evolves, our dedication to supporting a sustainable token economy within the IGGalaxy will remain. Our leading deflationary mechanisms are currently the monthly IGG burns from the rewards we gain as a Super Representative candidate, and 0.2% of all IGG stored in IGLabs capsules.

We previously outlined that 50% of all IGG required for the establishment of teams would also be burned, but have since opted against a fee for establishing teams. Although this deflationary mechanism is no longer intact, as explained above, further mechanisms will be included in components such as the subscription fee.

With this, as the supply is reduced over time, and more users join and interact with the IGGalaxy, the demand for IGG will increase, which is positive for the token’s value.

To keep up to date with developments, please follow us on our various social media channels:

Website: www.iggalaxy.com
Twitter: https://mobile.twitter.com/IG_Galaxy
Instagram: https://www.instagram.com/intergalactic_gaming/
TikTok: https://www.tiktok.com/@ig_galaxy
Facebook: https://www.facebook.com/IGGalaxy/
Twitch: https://www.twitch.tv/igg_esports
YouTube: https://www.youtube.com/channel/UCLns6ldhC_OD8LGQD9naPlQ
Discord: https://discord.gg/5kx4tKR
Telegram: https://t.me/IGG_Official
LinkedIn: https://www.linkedin.com/company/intergalactic-gaming
Reddit: https://old.reddit.com/user/Intergalactic_Gaming
Medium: https://medium.com/@IGGalaxy

Intergalactic Gaming

Written by

Social Competitive Gaming: Powered by the TRON Blockchain. www.iggalaxy.com

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