Since the inception of IOTAplus, some time has passed and we would like to be fully transparent on the Tokenomics of the project. IOTAplus AG is developing a game hub called Sphere. Within this gaming platform, you will find the Metasphere, a metaverse connecting different worlds that will be released one by one – each with a different theme. Next to the Metasphere, game developers will have the chance to launch their games through our Sphere DApp. The token Sphericals will be the currency within any game on the platform and can also be used on the game hub itself including the NFT marketplace. Therefore, buying assets (in the form of NFTs) or land will require Sphericals while selling will allow holders to accumulate more tokens. We are really excited to share more information about that in this guide.
We structured the Tokenomics guide into the following sections:
- Token Supply Mechanisms
- Non-Financial Incentives
- Financial Incentives
- Token Distribution
- Token Roadmap
The token Sphericals will be created as a native asset on Iota’s layer 1 with a total supply of 10 billion. The Distributed Ledger Technology of IOTA is specifically designed for microtransactions and greater scalability opening itself up to endless new use-cases that are ineffectual on a traditional blockchain. This allows our Sphere DApp and, therefore, users to have feeless transactions in a secure and fast way. Smart contracts will be executed and validated through the Assembly Network with its sharded architecture enabling horizontal scaling and finality within seconds. Permissionless smart contracts are requested by the owner to the root committee of Assembly, to list the contract and to set parameters including the fee structure. The root committee is established by validators within the network with the highest trust score. As Assembly is still under development, the project will temporarily draw on permissioned smart contracts chains to test functionalities. The token distribution and mechanisms will be validated on the staging network, Shimmer. Participants on Shimmer will have the chance to trade the Shimmer token for the Sphericals equivalent to test our platform with the first features. From then on, we will always first test new features on Shimmer and later port them to the mainnet.
The initial governance is administered by IOTAplus AG. The company was founded with the purpose to create the next-generation gaming platform. Although all operations are led by a centralized entity, we are preparing ourselves for a decentralized world in which we can easily transform once the regulation becomes clearer. Therefore, in parallel, a DAO will be set up to govern the token once the DApp Sphere is running on the IOTA mainnet. This will democratize the decision-making process allowing token holders, especially players of the Sphere, to have an influence on certain topics such as token burning, game economy conditions that can impact the earning rate of Sphericals or other resources, and new game implementations.
Token Supply Mechanisms
We are putting a lot of thought into the token economy and the way we can guarantee a free economy without interfering too much with the token supply. One mechanism will address the deflation of the token. As we will have more tokens coming to the market through play-to-earn rewards, we are planning to burn tokens that we receive through our marketplace fee. This would allow us to decrease the supply in obvious bear markets or times in which the supply by far outweighs the demand of the token. “Speculative goods in a bear market create an exception to the law of supply”: The lower the price, the higher the number of tokens supplied. The token’s utility on our multi-game hub and deflationary measures should be sufficient for the ecosystem to survive during the next crypto winter.
For gaming environments the most obvious non-financial incentive is fun. We will ensure that the DApp Sphere will provide the needed infrastructure for game developers to release exciting games through our platform. The primary motivation behind our mission is to enable a great experience for gamers and game or NFT creators. The experience on the DApp Sphere and our Metasphere has and will always have priority for us. Other non-financial incentives such as marketing for your products or services can be leveraged through the Metasphere. There, you have vast opportunities on your own land as we will not intervene on what you build or exhibit there (as long as it is reasonable).
Our three main stakeholders for the platform: game developers, gamers, and NFT creators will all be incentivized by Sphericals token rewards. Generally, one can expect that a higher financial incentive to hold the token leads to a reduction of the willingness to use the token and consequently, to a decline in platform usage. As the focus lies primarily on the platform usage, financial incentives for holding the token will exist, but won’t prevail and instead, users should be using tokens for greater returns within the existing game economies on Sphere. We are exploring staking possibilities that can enable NFT airdrops to be used in-game or sold on the NFT marketplace.
General Token Information
Token Name: Sphericals
Token Type: L1 IOTA – Native Asset Token
Total Supply: 10B
Current price per Token: 1’000 IOTA (0.001 MIOTA)
10% | 1 B Initial fundraising: First investment round
30% | 3 B ICO: Second investment round
40% | 4 B Ecosystem: For platform development, game development, and marketing campaigns
10% | 1 B Play-to-earn: Ingame rewards from competitions and mining
5% | 0.5 B Team: Reward to the team for the successful launch
5% | 0.5 B Liquidity Reserve: For market makers and others