Game.com (Token name: GTC — CoinMarketCap) has successfully launched its ‘Game Mining’ platform based on the new GT token on August 8, 2018. GT mining can be tracked in real time at: https://gt.zone with the English white paper downloadable here. This article will provide a simplified explanation about GT token economics and how GT mining works.
GT Introduction
There are a total of 10 billion GT tokens (Etherscan). 51% or 5.1 billion GT is the mine-able portion. 49% or 4.9 billion GT is the privately held, non mine-able portion.
Of the 5.1 billion mine-able GT, 39% is mine-able through gaming, 6% is mine-able through trading on the new Game.com exchange and 6% is mine-able through the Game.com shop. We’ll focus on the gaming portion below as the other two portions work similarly.
The 4.9 billion non mine-able GT are mostly held by Game.com and partner gaming companies. As a reward for early investors, 300 million GT out of 4.9 billion will be made available to GTC investors who froze GTC in the Game.com mobile app before June 18, 2018. This 300 million GT becomes unfrozen in one year (unfrozen August 9, 2019). The rest of the 4.9 billion becomes unfrozen in 3 years.
How GT Mining Works
Players can mine for GT by playing games on the Game.com mobile app with the GTC token. For instructions on how to download the Game.com mobile app see the following article:
Introducing the Game.com Mobile Gaming Platform
To access ‘Game Mining’, go into the G Fun section of the app:
There you can see the three available ways to mine GT (Trade Mining, Game Mining and Store Mining):
For ‘Game Mining’, the total GTC that a player pays to Game.com in fees while playing games will be returned to the player the next day in the form of GT. This process is also referred to as mining for GT (note if a player loses GTC to another player that GTC does not count towards mining for GT). In addition, the daily GTC profits generated on the platform are given back to GT token holders (based on the proportion of GT you hold relative to the total circulating supply of GT). To more clearly understand this process, it is instructive to use an example.
Let’s say the GTC price on exchange is 0.2 USD and GT price on exchange is 2 USD. On a particular day, Player A pays 1000 GTC in fees while playing games while Player B pays 500 GTC in fees. Therefore, the next day Player A will receive (1000*0.2 / 2) = 100 GT and Player B will receive (500*0.2 / 2) = 50 GT which they can either hold or immediately sell on exchange. By holding GT, players can get a share of the total GTC profits of the platform (dividends).
To show how profit share amount is calculated, let’s say you hold 1,000 GT and there are 10,000 circulating GT. Also, the total GTC profits for the previous day was 100,000 GTC. To calculate your share of the GTC profits, you can do the following:
First, 80% of the profits generated on the platform is given back to GT holders and 20% is held by Game.com. Therefore, 80,000 GTC is given to GT holders.
Next, your share of the 80,000 GTC is 1/10 (1000/10000) of that or 8000 GTC.
One additional complication is that the total circulating supply of GT includes both GT that’s mined (from the 5.1 billion mine-able GT) and GT that’s “released” (from the 4.9 billion non-mineable GT). The “release” of the 4.9 billion non-mineable GT happens at the same rate as the mining (for example, when half of the mine-able GT is mined, half of the non-mineable GT is “released”). However, this “released” non-mineable GT can only be used to collect dividends and cannot be sold for 1 or 3 years (see above).
Looking forward, it will be exciting to see if this model of token mining / profit sharing is a viable one for gaming. If successful, one can imagine this concept being used by many cryptocurrency companies to incentivize adoption of services.
Check out Game.com’s social media:
Telegram: https://t.me/gameico
Official twitter: https://twitter.com/gameblockchain
CEO’s twitter: https://twitter.com/gelert
