Seascape Network
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Seascape Network

Token Economics, a Primer

The value locked in DeFi has seen enormous growth in the past three years, reaching $1 billion USD in early 2020. By the end of the year, that number had leapt enormously to a staggering $14 billion. Since 2017, we can see a spike in activity that has produced a subculture of excited crypto enthusiasts following trends seeking great profits.

Source: DeFi Pulse December 2020

DeFi tokens have demonstrated this year their ability to outperform utility tokens as well as Bitcoin and Ether through their raw economic power. What was once seen as a passing phase in the crypto community, has been dubbed by Fortune as “here to stay.” DeFi tokens took a sharp shift when they began to reliably demonstrate clear paths to value accrual as well as consistent growth of on-chain economic activity. This was big news during the economic depression which swept the world this year, from which DeFi tokens seemed to have remain magically untouched. Big names in DeFi, such as Balancer and Compound, showed how it’s possible to daisy chain growth through liquidity mining and other incentives. Incentivising users creates a market whereby borrowing and lending can grow exponentially.

Enter Seascape. The universal token of the Seascape Network, Crowns, are designed to fit exactly into this space — ensuring value accrual and steady growth for those involved on the Network; with rewards proportional to involvement. In their first series of DeFi minigames, users will be able to provide liquidity to the ETH-CWS pair, and in return receive rewards in Crowns. By carefully balancing the rewards granted in order to avoid massive inflation, Crowns resemble many other successful pioneers in the 2020 Token Rush. Similar to legends like Synthetix, who incentivize liquidity for its tokens on external exchanges, liquidity providers (LPs) for Seascape receive both trading fees on Uniswap and liquidity mining rewards from Seascape. This process, which has come to be known as “aquaponic yield farming,” enables users to receive rewards from multiple symbiotic protocols, thereby strengthening and legitimizing the DeFi community while gaining financial benefits at the same time.

Seascape plans to take this one step further, by introducing NFTs into the picture. While it’s true that ethereum gas prices and limited functionality have constrained the potential of NFTs to date, Seascape intends for them to be a focal point in the economics of the platform. The only way to tackle the first problem is through layer-2 scaling, alleviating traffic from the Ethereum mainnet. This is the primary reason that Seascape has partnered with Polkadot. In fact, a variety of Polkadot parachains will connect to the viaduct, linking Seascape with the outside world.

Secondly, and most importantly, Seascape is working to unleash the full potential of NFTs as game assets. With high quality art, relevant to both the games and the DeFi community at large, they will have value as collector’s items, with their own economic logic and returns on investments. Additionally, the NFTs have a variety of in-game uses, such as staking for rewards. When claiming the NFT, however, it is burned. Spending Crowns can also earn the user more NFTs. This balancing act keeps the economy involving Crowns & NFTs as related Tokens stable.

In sum, Token economics is seeing its true naissance in 2020. The future is in the hands of a few small companies with dreams, and a massive movement of crypto and DeFi enthusiasts whose constant support and interest is vital to the movement. With passion, the sky’s the limit.

Stay tuned for more updates from the Seascape Network and find out more about how you can earn while you play!

Website: www.seascape.network/

Twitter: twitter.com/seascapenetwork

Telegram: t.me/seascapenetwork

Reddit: bit.ly/2KiZb6d

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Seascape Network

Seascape Network

Seascape Network is a game platform designed around the Defi and NFT economies! https://game.seascape.network/