💹Deflationary measures and value accrual

To ensure the long-term sustainability and value appreciation of the Frog Coin, Travel Frog implements several deflationary measures and value accrual mechanisms. These measures aim to control the supply of Frog Coin, create scarcity, and drive demand for the token.

1. Burning Mechanisms

To further control the supply of Frog Coin and create additional scarcity, Travel Frog implements several burning mechanisms:

1. Marketplace Fees:

   • A small percentage of each transaction involving Frog Coin may be burned

   • This fee applies to both the buyer and the seller

   • As activity increases, more Frog Coins are permanently removed from circulation

2. Chest Opening Fees:

   • A portion of the Diamonds spent on purchasing keys for chest opening is used to buy back and burn Frog Coins

   • This mechanism creates a constant demand for Frog Coin and reduces its circulating supply

3. Event and Challenge Rewards:

   • During seasonal events and challenges, some of the frog coin rewards consumed by players will be burnt

   • This burning helps to offset the additional Frog Coins introduced through event rewards

   • The exact percentage of Frog Coins burned may vary depending on the event and its duration

By implementing these burning mechanisms, Travel Frog creates a deflationary pressure on the Frog Coin supply, which contributes to its long-term value appreciation.

2. Staking and Governance

To further incentivize the holding and active participation of Frog Coin owners, Travel Frog introduces a staking and governance system:

1. Staking Rewards:

   • Players can stake their Frog Coins to earn additional rewards

   • Staking rewards are paid out in Frog Coin and are proportional to the amount and duration of the stake

   • Staking helps to reduce the circulating supply of Frog Coin and encourages long-term holding

2. Governance Rights:

   • Frog Coin holders who stake their tokens gain governance rights within the Travel Frog ecosystem

   • They can participate in decision-making processes, such as voting on proposed changes to the game mechanics or token economics

   • Governance participation is weighted based on the amount of Frog Coin staked

   • This system gives Frog Coin holders a voice in shaping the future of the Travel Frog ecosystem

By offering staking rewards and governance rights, Travel Frog creates additional incentives for players to hold and actively engage with the Frog Coin, driving its value accrual and long-term stability.

Through a combination of phased production reduction, burning mechanisms, and staking and governance incentives, Travel Frog implements effective deflationary measures and value accrual strategies to ensure the long-term sustainability and appreciation of the Frog Coin. These measures help to align the interests of all stakeholders and contribute to the overall health and growth of the Travel Frog ecosystem.