Tiny Spotlight
TINC Tokenomics, Tiny World game economy and the TinyDAO
Hey and welcome to the 4th edition of the Tiny Spotlight series, where we shine a light on the products and workings of the Tiny World platform.
Today we are going to take a deeper look at the ecosystems economy, including the tokenomics, game economy and the TinyDAO.
If you have missed any of the previous editions, you can find them on our page! So without further ado, let’s dive in to this weeks spotlight!
?? What are Tokenomics? ??
Tokenomics is a term that describes a token’s economics on a range of factors that impact a token’s use and value, including but not limited to the token’s creation and distribution, supply and demand, incentive mechanisms and token burn schedule.
?? What is a DAO? ??
A DAO is a decentralised autonomous organisation, a type of bottom-up entity structure with no central authority. Members of a DAO own tokens of the DAO, and members can vote on initiatives for the entity. Smart contracts are implemented for the DAO, and the code governing the DAO’s operations is publicly disclosed.
?? Introduction ??
Tiny World is built on a strong game economy and great tokenomics to enable value to be created in the ecosystem. Without value being created by game assets like NFTs and tokens like TINC, there would be a lack of earning opportunity and the platform would cease to operate.
The Tiny World team has focused on building a strong game economy based on trading to bring value to assets, locking and burning assets to reduce supply and asset consumption to reduce the amount of assets on the marketplaces - keeping prices higher and thus more attractive.
?? What is TINC? ??
TinyCoin is the native token of Tiny World and it is spent and earned on the platform
TINC is a BEP-20 standard token that can be earned through gameplay and yield farming on the Tiny World platform. TINC is used in on the platform to play games in different ways;
Tiny Kingdom - Use to purchase crystal currency and increase bag size
Tiny Lord - Use to initiate battle with the Lord of the territory
There will be more use cases added for TINC in the future, with more ways to use in Tiny Kingdom, Tiny Dungeons and NFT lending will be in exchange for TINC.
You can obtain TINC on PancakeSwapHuobi Global
Tokenomics
?? Allocation and distribution ??
Token Ticker:
Total Amount:1,000,000,000
Token Address: 0x05aD6E30A855BE07AfA57e08a4f30d00810a402e
There will only ever be 1 Billion TINC tokens minted, and they will be distributed in various ways over the next 5 years, according to the table below.
Yield farming and the play to earn section make up 52% of the token distribution, and this is released over 5 years to the community from playing and interacting with the platform and the various games.
Strategic sale and private sale allocations are for investors, and advisors receive an amount of tokens for helping support the team in all areas. There is also 18% earmarked for ecosystem growth and 5% for community development. These portions are used to run giveaways, events, marketing and building the platform.
Finally, the team’s portion is reserved for the core team members at 15% of the total token. The core team’s portion started vesting on 7th September, but due to the recent bear market, the team has decided to lock away the first years worth of vested tokens into the TinyDAO staking pool. This proves their commitment to the project and also how seriously they are taking long term sustainability and growth over short term gains.
??Token Burn??
To reduce the amount of TINC tokens in circulation and help protect it against inflation, the team has implemented some token burn features into the platform. Burning tokens indefinitely removes those tokens from the supply.
The most notable token burn feature is completed by minting Tiny Hero NFTs. Each one that is minted costs 100 TINC. Of this 100 TINC, 80% of the amount is burned, so 80 TINC is burned every time a new Tiny Hero NFT is minted. This burns through a considerable amount of TINC daily.
There is also a buyback and burn feature in the form of a smart contract that automatically buys tokens and burns them every hour when the token price drops below the 72 hour average price. When the conditions are met, the contract takes $50 worth of BUSD stablecoin from the TinyDAO and uses it to purchase TINC at the current price. Once the transaction has been executed the tokens are burned immediately and taken out of circulation.
Currently there is a total supply of 65,740,000 TINC tokens at time of writing, of which almost 27,000,000 have been burned already. This means that the total circulating supply for TINC is around 38,800,000.
You can calculate the market cap of any token by using the simple equation below
Circulating supply x token price = market cap
The current market cap for TINC is $2,653,000 with a price of around $0.07.
? TINC emission ?
TINC emission rates will reduce occasionally over time according to the team update posted on 10th August 2022. The reduction depends whether it is the main pool or the innovation pools.
Main pool = LP boost pool
Innovation pool = NFT farming, Tiny Kingdom leaderboard
There was a recent emission reduction at the beginning of September which means that there is even less circulating supply of TINC than there would be with no emission reduction. Both the main pool and the innovation pools have received emission reductions which makes TINC more scarce and will help to protect the token against further inflation. TINC has seen some stability in the token price since these reductions took effect.
There will be further emission reductions in the future, with the main pool reducing by 25% every 6 months and the innovation pools reducing by 30% each quarter.
??TINC locking??
TINC can be locked in different ways in Tiny World. Locking TINC reduces the amount of circulating supply that is readily available to sell, The more TINC that is locked up, the fewer tokens can be sold. This is great at protecting against inflation, and the team offer incentives for staking TINC on the platform;
- Stake with BNB and obtain LP tokens and stake in the LP boost pool to generate a passive TINC yield.
- Stake in the TinyDAO to obtain veTINC and generate TINC yields
Tiny Kingdom leaderboard rewards are initially locked and unlock over 1 week to avoid token dumping at the end of each weekly season
?? Game economy ??
The game economy has been developed to be adaptive and dynamic and there are many features in place to keep value in the platform.
Tiny Hero NFTs can only be used in one part of Tiny World at a time. This means you will need multiple Heroes to participate in all of the amazing gameplay and increase your earning opportunities. This keeps demand for Tiny Hero NFTs higher than if you could use the same Tiny Hero across all facets of the platform.
????? Trade everything ?????
Being able to trade all game assets has its issues to overcome. You need to create value in the ecosystem and the team has come up with multiple consumption scenarios for Tiny World assets to keep demand higher than supply and maintain a good market flow.
In Tiny Kingdom, the floor price of materials is dynamic according to the TINC price
TINC < $0.05 = 0.25x original floor price
$0.05 < TINC < $0.60 = 0.5x original floor price
$0.60 < TINC = original floor price
?? Asset consumption
Users in Tiny World can make profits from trading assets such as game items and NFTs. In order for this kind of system to work and flourish, there needs to be careful consideration of how these assets are used on the platform. If there is too many of each asset, then supply quickly outweighs demand and oversaturation of market assets cuts users off from their main source of income. Eventually, due to lack of profits, the enjoyment factor dwindles and the user will leave the platform.
The asset economy has been well thought out and there are many consumption scenarios for all Tiny World assets to help keep value within the ecosystem by decreasing supply. We have spoken about them in previous spotlight editions, they are;
Tiny Farm
- NFT upgrading
Tiny Kingdom
- Equipment upgrading
- Material/equipment melting for crystals
- Material workshop
To upgrade NFTs, you must consume and essentially burn more NFTs to increase the level. When upgrading high class heroes it consumes many more NFTs than lower class heroes. This consumption keeps the floor prices higher for NFTs and adds utility to the low class heroes which are less desirable and far more common.
The consumption scenarios in Tiny Kingdom are aimed at consuming materials and equipment. The most simple consumption scenario is to melt materials/equipment for crystals. It is a simple and effective way to reduce the amount of assets on the marketplace, and lots of assets are melted each day as users manage their limited inventory
A huge consumption scenario for materials is to forge and upgrade equipment. Equipment can be upgraded many times and this consumes more materials and equipment from the marketplace for each level gained. To get an equipment to level 10 it will need to consume and fuse a total of 70 separate pieces of equipment. Some equipment can grow to level 15 which consumes another 184 equipment which would otherwise go on the market.
The material workshop allows players to burn materials in exchange for tickets. Expedition tickets are used to send SSR heroes and above on an expedition. BOSS tickets are used to participate in BOSS trials. To get different tickets, you will need to consume certain quality materials,and the amount needed depends on the type of ticket being made.
The quest feature allows players a chance to earn token rewards by creating specific strength equipment. When the quest is on, the demand for materials used to forge quest equipment increases and creates movement in the marketplace.
The team will continue to add and develop more consumption mechanisms into Tiny Kingdom and the whole Tiny World platform to increase the market flow of assets and enable users to trade more freely and earn.
?? TinyDAO ??
The TinyDAO treasury is owned by the community. It collects the majority of the platform profits from trading and spending in Tiny World. The pot is filled with two tokens; TINC and BUSD.
20% of the TINC spent minting Tiny Hero NFTs is diverted into the treasury and as of writing, there is currently $419,000 of TINC in the treasury (~ 6,100,000 TINC).
For each transaction on the marketplaces there is a 5% selling tax. 50% of this tax is diverted into the TinyDAO. There is a yield aggregator fee on the boost pool of 20% which goes into the TinyDAO treasury which means the majority of platform profits actually end up belonging to the community. There is currently around 819,000 BUSD in the treasury at the time of writing.
Over time, the value of the treasury increases and the funds will be used in different ways on the platform. There are some ways that the treasury funds are currently used;
- TINC rewards for quest in Tiny Kingdom are taken from the treasury
- TINC taken to fill the rewards pool
- BUSD used to buyback and burn TINC is taken from the treasury
The TinyDAO is great for the community and the platform as it helps create a closed loo[ economy where the majority of the value stays in the ecosystem and is not filtered out.
??? veTINC ???
veTINC is the governance token in Tiny World. veTINC is obtained by staking TINC into the TinyDAO staking pool. veTINC is invaluable to Tiny Kingdom users for its use of increasing the Hero title as mentioned in last week’s edition of Tiny spotlight, but it is not the only use.
veTINC holders will earn TINC yields from the rewards pool. Remember the 20% TINC that fills the treasury from minting Tiny Hero NFTs, well each week the figure diverted to the treasury is calculated, and 20% of this total goes into the rewards pool. The more minting that occurs, the better your APR for single token staking.
You obtain 1 veTINC for 1 TINC as long as you lock for 1 year. If you lock for 6 months you will get 0.5 veTINC per TINC locked, etc.
In Q4 the team will implement the voting mechanism for veTINC, and veTINC holders will be able to vote on how the funds in the treasury are used and key developments for Tiny World.
??Summary??
The tokenomics and game economy on the Tiny World platform has been developed by a team that has many years experience building this kind of economy. The economy is closed loop and adds real value to the ecosystem which enables users to earn in their spare time whilst enjoying fun gameplay.
The many uses for assets and also TINC on the platform help to add value and avoid a spiral of death which many GameFi projects have witnessed before.The great news is that Tiny World is being developed all of the time, with constant updates and optimisations to current products and really interesting new products to come.
Come and join in the fun today and start your HUGE adventure in Tiny World!
Stay up to date on everything by following our socials, and get helpful tips from tutorials. Join our amazing communities and read our whitepaper for extra information about Tiny World!
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That’s everything for this edition of the Tiny spotlight series, see you next week for the next edition where we take a deeper look into the future developments!
