Earnings, Not Emissions — “A Deflationary Model.”

Ever wondered how projects can offer a really high yield that only seems to decrease over time? Have you bought the token, only to realize after holding for a couple months, that even with that high APY, your total value decreased? Additionally, why does the APY decrease significantly during that same time period? We are going to address these issues and show why Arcade is much different than most crypto related projects on the market today.

Token Structure

When a crypto project launches its token, it usually sells about 15–25% of the total supply through seed, private and public rounds. Seed and private rounds are for those investors and business partners that will add long term value to the project, through advice, planning, networking, marketing, and management. These early investors are necessary to the project, as just like any business, proper execution of core fundamentals is the key to longevity. After the project has raised sufficient capital to fund the development and operations, tokens are sold to the public to increase the scale and scope of the project. The remaining tokens are allocated to different pools, such as community rewards, team, vault, and advisors. The knowledge of this structure is important in order to know how your rewards are being funded.

Emissions

For the most part, when you buy a token and stake it, you are receiving rewards funded by the community rewards vault portion of the total supply, released on a predetermined schedule. Unless there is revenue being generated by the project, that emission schedule inflates the circulating supply, which can, over time, cause the price of the token to decrease, resulting in a decline of net asset value to the token holder. It is important to understand how a project is funding rewards because it determines if they are sustainable. Receiving 5x the amount of tokens you staked, 2 years from now, will mean nothing if the price has decreased 80% due to these emissions.

Rewards funded by Earnings

Arcade’s mission pools platform revolutionizes the staking rewards opportunity by extracting real earnings from Play-to-Earn games, and distributing them to the participants. This means that the rewards a token holder receives from staking in a mission pool are not emissions from the community vault, but are $ARCADE that is purchased on the open market.

Arcade distributes those purchased tokens, thus creating a deflationary ecosystem, funded by inflationary gaming economies.

About Arcade

Arcade is the Game-fi platform that gives token holders the opportunity to earn meaningful rewards from Play-to-Earn metaverse games, without requiring gameplay or asset ownership. Assets owned by Arcade and NFT investors are operated by players or guilds and in-game earnings are passed along via our revolutionary mission pools infrastructure. Arcade is the Play-to-Earn ecosystem that brings game developers, guilds, players and $ARCADE holders together.