Deep into tokenomics, staking and rewards mechanism in Ducklization
To understand the beauty of Ducklization, one must first understand its economy that is, for each crypto game, fundamental to its success.
The only way for it to be successful is to set it in a deflationary manner, in combination with a game mechanism that requires a high demand for tokens and that provides an increase in the TLV. The dynamics of issuing the token and the rewards in the game are also important…
but let’s proceed step by step.
Distribution and issue of the token
The initial distribution of the token was designed to avoid the accumulation of too many coins in the hand of a few whales, in fact only 5% of the total will be sold through pre-sale. Tokens sold in pre-sale are subject to a 6-months-vesting, in order to keep the game fair and avoid price manipulation at the start of the game.
Beside a 5% of tokens sold in pre-sale, will be added a 5% for the team and a 5% for promos. No more than 2% will be initially used for the promotion and it will be assigned to a varied audience! Approximately 8% of the tokens will remain in the hands of the team, which will be used in part to provide initial liquidity and in part will be held for promotions and future expenses. The remaining 85% (!) will be locked into the smart contracts of the game and will be released gradually, through the staking process and In-Game Rewards.
The tokens that can be extracted will only be those coming from staking and rewards within the game.
Daily token distribution and coin path
To understand how coins are redistributed day by day, it is necessary to understand the path they take, where they come from and where they end up.
Let’s start with the subjects who can spend the SHEG that are the owners of countries, cities and individual players. Each of these entities can spend SHEG differently, by purchasing units on the marketplace, raising buildings and units, or developing technologies. SHEG spent in this way are redistributed daily like this:
- 65% DPR (Daily Production Rewards) — This is the part of the token that will repopulate the chest of production rewards, and this reward goes to the participants of the stake, which are Ducknations and their Waves Ducks and cities.
- 20% TLV (Total Locked Value) — This is the part of the token that remains tied to the unit, buildings or technology produced. This value can only be unlocked by destroying the built unit.
- 10% DGR (Daily Gaming Rewards) — This is the part of the token that will repopulate the in-game rewards chest, that is the reward that goes to the players who fight inside the map, in the form of gifts or enemy units.
- 5% Team — This is the part of the token reserved for the team, to ensure the maintenance of the game. A portion of these tokens will be used to make buybacks and support the price of items for sale on the marketplace.
Every day 1/365 of the total is taken from chest of production rewards and distributed among the staking players; obviously every day this wallet is replenished with in-game expenses, through the process described above. This wallet will initially contain 730 000 tokens (2000/day) and for the first year of the game no tokens will be added other than those spent within the game. The remaining 4 900 000 pre-allocated for the DPR will be released only after the first year of play, with the frequency of 1500 tokens per day.
Similarly, the DGRs will be issued, but starting with 224 000 SHEG (613/day). The remaining 1 776 000 tokens will be released after the first year with a frequency of 550 SHEG per day.
The staking process
The daily production rewards (DPR) is divided equally daily among all staking participants: Ducknations, Waves Ducks and cities.
Ducknations receive tokens according to their productive power, which is given by the sum of all the staking ducks and all the cities that compose it. The reward received is retained for 30% by the Ducknation itself, which will be able to spend it only on technological research and the creation of settlers, the units that can build a city. The remaining 70% is given to Wave Ducks owners and city rulers.
TLV and incentives
The mechanism that binds SHEG to units and buildings is a vital process to keep competitiveness alive within the game, as well as to give value to the SHEG token. In fact, on the one hand, this process blocks the tokens within the game’s smart contracts, making them non-expendable (as happens in tokens that are set up for a TLV), on the other hand it encourages constant gaming.
As each unit is potentially a reward, this should entice users to engage in battles and wars to win these rewards.
The other effect of this mechanism is the need to continuously build troops and buildings, in order to continue wars and to remedy the damage suffered. This whole process pushes the continuous use of tokens, making it potentially very coveted and rare.
Unit cost and in-game expenditure estimates
Assuming that it is absolutely not possible to estimate the coins spent daily, we can still try to make some estimates.
Considering all 9 Ducknations as operational, we can say that, if ideally only these Ducknations produced one settler per day, the daily expenditure of SHEG would be 900 SHEG/day.
Let’s also assume that each Ducknation has 3 cities and each of these produces 20 warriors per day at a cost of 5 SHEG each, that would be a cost of 2700 SHEG. That would be a total of 985 500 SHEG/year against a guaranteed emission of 748 250 SHEG/year.
We keep in mind that these numbers are totally considered to be bearish, as it is very likely that these figures will be exceeded very quickly.
Considering the initial issue of SHEG, the initial circulating supply will not be sufficient to cover all these requests, giving structural limitations to the game (fundamental to avoid the whaling and encouraging wars to extract blocked SHEG) and making the token very scarce and rare.
To get an idea of the production costs, here is the list of some unit costs:
- Settler: 100 SHEG
- Explorer: 1 SHEG
- Warrior: 5 SHEG
- Granary (level1): 50 SHEG
