Tokenomics
Last updated
Last updated
The genesis event (11/30/2021) will generate 50M DENI tokens. From that moment, there are no inflation mechanisms: no new tokens will be generated. On the contrary, the token economy will follow a deflationary model, in which a percentage of the fees accumulated in the liquidity pools and in the marketplace will be burned every month.
Terrae team has not received any investment of any kind, therefore, although the team will invest its own capital for the development of the platform, a part of the tokens will be kept to subsidize the future development of the platform, if necessary. If not, the tokens will be given to the DAO reserve.
On the other hand, Terrae was conceived as a project that belongs to the community.. This is not just another marketing slogan:
Councils, which are voting events to determine the direction of the platform's development, will be held from the very beginning.
Artists are invited to participate by contributing their work.
Writers are invited to contribute stories from the different Houses of the world.
Founders are in direct contact with the communities (discord, twitter, telegram) listening to all suggestions.
A percentage of tokens is allocated to the DAO reserve, in the hope that they can be used to invest in whatever the DAO decides.
With that being said, it is worth noting that the percentage of tokens that belong to the community from the beginning is 64%. To date, it is difficult to find projects with these characteristics. Of the remainder, 16% will be used to finance the development and growth of the community. Finally, the remaining 14% is the only source of revenue that the team will have. This revenue will have vesting over 2 years and negligible value in the first time, which generates a security for the token holders and the community, aligning the economic incentives of the founders with the growth of the project.
The token distribution has the following breakdown:
15,000,000 DENI (30%): Liquidity Rewards. Used to stimulate LP tokens farming and early users staking. Funds will be released with linear vesting over 2 years.
10,000,000 DENI (20%): Development. This amount of tokens will be used to finance the development of new functionalities in the platform. The tokens will have vesting and will be unlocked over 2 years as certain stages of development are completed. The team is committed to maintain the price of the token at each stage.
7,000,000 DENI (14%): DAO Reserve. Terrae development will be community driven. Councils in which token holders and liquidity providers will be celebrated with frequency, not only to decide game features but also to decide how to invest funds from Reserve (development, marketing, rewards, contest prizes, etc). Funds will be released with linear vesting over 2 years.
7,000,000 DENI (14%): Team. A percentage of tokens is reserved for the team as compensation for the work. Funds will be released with linear vesting over 2 years.
5,000,000 DENI (10%): Liquidity. Used to inject liquidity in pair pools, like DENI/USDT, DENI/ETH or DENI/MATIC. No vesting on this set of tokens.
2,000,000 DENI (4%): Gameplay Incentives. Used in contests, PVE prizes, early PVP prizes and all kind of in-game rewards to stimulate the play-to-earn dynamic. In the long term, funds for prizes will come from pair pool fees and marketplace fees, among others. Funds will be released with linear vesting over 2 years.
1,500,000 DENI (3%) Partnerships. Used to set partnerships and stimulate community growth. Linear vesting over 1 year.
1,000,000 DENI (2%) Marketing. A portion of tokens will be used for marketing campaigns, including airdrops, contests prizes, influencers campaigns, etc, seeking community growth. Funds will be released linearly over 2 years.
1,000,000 DENI (2%) Bounties. Used to reward users who help the project, for example, by reporting bugs. No vesting on this tokens.
500,000 DENI (1%) Public Presale. A public presale will be held on 05/12/21. The funds raised will be injected into pair pools to provide liquidity to the market. Unsold tokens are sent to DAO Reserve.
DENI will have multiple use cases. Inside the game, it will be used to buy Terra lands, to buy heroes, leaders and wizards NFTs, to trade on the P2P marketplace, to swap natural resources. From an investor perspective, it will be used to inject liquidity on pair pools, yield farming and lend and borrow on the Bank. Finally, DENI is a governance token. For a complete detail, see Denaris Token.
A percentage of fees from pair pools will be burnt each month. The exact amount of tokens will depend on trading activity. You can refer, for example, to BNB token burning to understand how this works.
Pair pools charge 0.3% per swap. 0.2% are owned by liquidity providers, 0.05% go to the Reserve and used for weekly prizes in game tournaments, and 0.05% are burnt.
Terrae is deployed on Polygon, an EVM compatible, low fees and scalable blockchain.
