(Part 5) How To Play Robots Farm: Tokenomics 💰

In this article we’ll go over the tokenomics of the Robots Farm token. We will highlight certain interesting and noteworthy parts and hopefully present you some new insights.

All quotes in this article are taken from the official documents. And a shout out to the team for answering questions from the community 👏 You can read the Tokenomics yourself, by checking out the official documents.

Key takeaways:

• You will be able to use tokens to mint Robots at a discount!
• Token rewards from liquidity farming are also vested for 12 months
• The Total Supply will be 1 billion tokens (1.000.000.000), or less
• Tokens earned from within the game will be 100% unlocked
• Locked and Unlocked tokens will both be subject to a burn mechanism

1. Total Supply And Token-Launch

Tokens acquired in crates during this [Airdrop] phase will represent a fixed percentage [5%] of the future supply. The total number of tokens discovered in this phase will determine the overall token supply, these tokens are vested over a 12-month period

The total supply of the token depends on the amount of tokens found during the Airdrop phase. Ivankraft, a core Team Member, shared some insight in the matter. The maximum amount of tokens found during the Airdrop phase is hard capped at 50 million. This means that the total supply will probably be set at 1 billion (1.000.000.000).

If we keep finding tokens at the same speed as we are now, then the token launch would happen around the 24th of December, 2023.

2. Liquidity Farming and Allocation

Upon the distribution of Robots Farm tokens, unlocked assets can be seamlessly integrated into our concentrated liquidity farming ecosystem. A substantial 80% of the total tokens are specifically reserved for this purpose (…) the staking rewards pool might be replenished via a share of game protocol revenue

The unlocked tokens can be used for liquidity farming and a stagering 80% of the total supply will be used to reward liquidity providers. That means 85% of the tokens (the 80% + 5% from crates), will be owned by the community from the get go! When the 80% is depleted, the rewards will be paid from game revenue.

The other 15% will be distributed as shown below. Noteworthy is that only 1% of the total supply will be allocated to the team. This 1% also has a vesting periode of 12 months. The 14% will be used for providing liquidity to the DEX and potentially CEX. It will also be used for marketing purposes.

3. Locked vs. Unlocked Mechanism

Upon receipt of Robots Farm tokens, only a specified percentage will be immediately accessible or “unlocked”. The remaining tokens will be subject to a gradual release mechanism, unlocking over a 12-month period since the date of receipt.

The locked mechanism allows for a gradual release of the tokens, making sure there won’t be a big supply shock. Another upside to this mechanism is that it can be implemented, and become part of the game. More on this later.

The tokens you’ve received from Airdrop Crates will be locked for the most part, but we don’t know yet for sure how much will be locked. Since the vesting periode is 12 months, we could assume that 1/12th of the tokens are released every month. The team could also use an unlock mechanism comparable to Defi Kingdoms, where you are able to claim more of your locked tokens the longer you wait.

According to one of the core Team Members, the tokens earned from liquidity farming are locked and vested as well. The tokens discovered within the game, like future quest rewards, will be completely unlocked.

4. Token Utility: Robot Minting

Robots Farm offers its users the exclusive ability to mint robots utilizing the platform’s native tokens. A strategic incentive embedded within our ecosystem is the reduced cost associated with minting robots when deploying tokens, as compared to other currencies.

This. Is. Big. The token will be used as one of the currencies to mint new robots, while also getting a discount! The demand for the token will most certainly skyrocket.

It will be interesting to see how the price will be set and how it affects the amount of mints, because the value of the token will constantly fluctuate. The price for a Robot will probably be the equivalent of $100 worth of tokens, minus the discount.

5. Token Deflation

In this [deflationary economic] model, a certain percentage of tokens spent in-game are periodically removed from the circulating supply. Specifically, on a monthly basis, these tokens are “burned” or permanently removed from circulation.

Burning tokens is an excellent way to keep the total supply in check, especially when new tokens are still being minted. Making sure a certain percentage is periodically burned keeps these two in balance.

This is very beneficial to the economy of the game, since players are also able to use their locked tokens within the game. Meaning that the locked part of the supply will probably also be subject to the burning mechanism.

6. Locked Tokens Use Case

While certain token portions are subject to the aforementioned 12-month unlocking mechanism, it’s pivotal to note that locked tokens aren’t dormant. These tokens can be readily deployed within the Robots Farm game.

Hooray, the locked tokens are actually useful! We will be able to use the locked tokens to participate in the game. This is a great way to reward early players. We might be able to use locked tokens to go on quests, make upgrades or even spend them on Robot minting, although minting is probably too good to be true.

Additionally, like we read in ‘Token Deflation’, a part of the tokens will be burned that are spend in-game. This will make sure the total supply is lowered while giving people a different way to participate in the game, and this might also be the case for the locked tokens!

7. Finishing Thoughts

There are still a lot of uncertainties and unknowns regarding the tokenomics. The 12-month unlock periode for example sounds straightforward, but there are still a lot of different ways to go. We will definitely find out more in the weeks leading to the launch of the token.

If you have any questions or comments, feel free to ask!

Cheers, Notsofinicky 🤝

Please leave a comment and give some claps (max 50x) if you liked this article! Check out the links below for more information about Robots Farm!

(Part 4) How To Play Robots Farm: Tips & Tricks 🤖

(Part 3) How To Play Robots Farm: Airdrop Crates💎zkSync’s GameFi Gem

(Part 2) How To Play Robots Farm: Points, Quests and the Merchant💎zkSync’s Gem

(Part 1) How To Play Robots Farm: The Basics🤖zkSync’s First GameFi DEX💎