Token-economics of CATS Utility Tokens
The full supply unlocks over the course of 2 years to provide a predictable curve that won’t impact market pricing significantly. Each allocation unlocks progressively over the course of its schedule. Details below.
The vast majority of funds raised through all sales will be expended on either development, or to provide liquidity for trading. The remainder will be used to cover some legal costs and to expand the partnerships of our ecosystem.
Rounds: allocation includes rounds 1, 2 & 3 (IDO). Liquidity: 5.5% unlocked for listings, then 5.5% for 5 months, then 4.4% for 10 months, then 2.47% for 9 months. Marketing: releases evenly over two years. Team: 100% locked 1 months, then 7% monthly for 4 months, then 7 months locked, then 6% monthly over 12 months. Staking: 6M in the first year (3x contracts w/ 2M each), rewards halving every 12 months. Reserve: 1 year fully locked, then 8.3% monthly over 12 months.
It's functional to our purposes, a good compromise between the desire to spread tokens to lots of people in the short term, while also ensuring escalating scarcity in the longer term. This setup gives us:
- the size for both liquidity & costs
- to give away lots of tokens to lots of people for the purpose of promotion and brand building
- to keep the relative value per token small
- because the relative value of this token will stay small, it gives us time to grow our audience, develop and launch, and then start recollecting tokens at a higher rate
- the expense of tokens into their use cases (current & future) is what creates scarcity
The more the service the buyers are meaning to acquire is in demand, the more tokens will come back to our possession - and be kept out of circulation - pushing the price up.
The primary and most important use case of CATS is to purchase glory multipliers, functional to acquiring a greater share from the platform's revenue distributions. This means that the more money is distributed, the more CATS tokens will become valuable and desirable:
It's just rational, if $1M is distributed, getting a piece of it is nice. If $10M are distributed, it's worth more.
The more the platform is successful the more this number grows, and the more it grows the more it'll be desired. Further, the basic premise of CryptoArena is that revenue distributions increase over time, both as a consequence of direct business success, and of its unique self-decentralization process.
CATS are a DAO, an autonomous organization ruled by its community, but CryptoArena is itself a major holder (reserve allocation) and benefits monetarily from them. This is a positive for the CATS themselves, because those profits are also subject to distributions, thus adding value to the CATS.