Economy Design

Dual Token System

METH - In-game token

MXR – Main Token

The incentive of the Tokenomics of any project, specifically a close looped gaming economy needs to be fulfilling different purposes for different types of groups.

Gamers looking for a decentralised digital in-game currency as well as player owned NFT assets. The in-game currency needs to be easy, understandable and accessible, best without any blockchain tech knowledge.

Investors looking for assets with a high likelihood of positive returns. Therefore, the Tokenomics need to be well structured. High inflation and therefore falling prices can ruin a project and the interest in it.

Developers looking for an avenue to create value in form of add-ons, maps, NFTs, game modes. To encourage a vibrant community interested in the game and ever-changing contents it is appealing to provide an opportunity for those seeking to get involved. At the same time inflation of NFTs needs to be controlled.

The Main Focus in MicroRacers are of course the gamers and the community. Since those are going to sustain any long-term interest. Incentives in the form of rewards (Token/NFT) are a good way to build a strong community foundation.

DAO TOKEN ECONOMICS

DAO TOKEN Utility

Governance: The MXR token will be used in the future to Govern the whole gaming Ecosystem.

Staking: Staking the MXR token will reward holders and incentivise Providing Liquidity to Pools. Staking rewards will depend on the Lockup period.

● Marketplace Fee (Trading NFT)

○ A 3-5% fee is applicable to NFT trades on the Marketplace.

● Creating Subsequent NFT (minting of Karts/Labs/Workshops/Racing Tracks)

○ For the minting of further NFT (besides the Genesis) the option of using MXR would make sense, to reduce the circulating supply.

The MicroRacers Token MXR is used mainly for the Governance of the Protocol. To reach complete decentralization it is key to give the Community full control over what direction the game development is going to progress. That will be done over a voting platform in successive steps.

The first decision will be a trading fee amount which will fund the treasury. Further votes are going to be on how to utilize funds in the treasury and the final step is to hand over the whole Governance and the direction of further development totally to the community. In general, the utility of a token is responsible for creating demand, which drives up the digital asset’s value if the supply stays the same or decreases.

DISTRIBUTION AND VESTING : MXR

1.000.000.000 Max Circulating Supply

Vesting and Unlock Schedule

	Vesting by block	TGE Unlock	Cliff
Seed	28 months	10%	8 months
P1	6 months	15%	3 months
P2	6 months	15%	3 months
Lottery	6 months	25%	2 months
IDO	6 months	25%	2 months
Founder	24 months	0%	12 months
Development	24 months	10%	1 months
Ecosys	24 months	25%	non
Staking	12 months	0%	non
Liquidity	No vesting	100%	non

To give players more weight in the governance it would be an option to reserve some of the DAO token to distribute to players. (Game Rewards/NFT staking/Staking)

The creation of a Treasury address is a good idea instead of a burn mechanism. Treasury generates funds out of trading fees, and NFT Minting. Funds in the Treasury can be decided over by governance proposals. That can be the topic of the first gov. Proposals. The amount of fee charged on the marketplace, and the way Treasury funds are distributed. (Staking rewards, Airdrop, Development, Burn).

EMISSION

The in-Game Token will be earnable by active players. With different activities initially focused on the story and the PvP mode.

There are different Approaches as how to design an efficient in-game usable token.

Fixed Supply:

The main advantage of a Fixed Supply is that it creates more approachable, investable Token. Investors who are non-Players look for tokens with a max capped supply and ideally a high amount distributed in a decentralised way.

Uncapped Supply:

With an unlimited Supply of an in-game token, the ways to adjust the details of the tokenomics also with a variable player base is more easily doable.

(Example: The Player amount doubles within a short timeframe, but the token gets close to full distribution. New tokens can’t be minted. If the treasury needs to distribute more tokens than are available at the current distribution schedule, the only way to maintain balance is to reduce the number of tokens players will earn for winning & racing. That can cause frustration in the player.

The question needs to be if in-game tokens are distributed to players only or are they used for presale and investors. That offers the possibility to raise money for the development of the project, but it also creates a lot of sell pressure from investors who wish to take profits or reallocate.

One way would be to offer the DAO token to Investors and launch it over some Launchpad to the public. The in-game Token is only distributed to active players via play to earn structures. That way the economy needs to expand with the number of active players and be able to contract to balance price action in case the player base is reducing.

This concept avoids pre-sale Investors dumping big shares onto the market and crushing in-game economics. This should lead to a much more organic growth. And in such way creating an incentive for players to be active and new gamers to enter the ecosystem.

ABSORPTION

For a close looped P2E economy the most important part is avenues to spend earned tokens.

For that reason, we suggest an approach to create a rather complex level and upgrading mechanism in the game.

1. Upgrading Racing Performance Stats.

A way for Players to stay in a game loop is an successive upgrade system. Over Experience Level as well as “tuning'' certain aspects of the Racing Kart. Levelling up Engine, Gear, Bio-Fuel, Booster cell, Lab, DNA sequence and CRISPR kit. 2. Tech Tree System

a. Certain aspects of Micro Racers will be structured in such a way that players can Level up step by step the ability to produce fuel in higher quantity, higher purity.

ai. Fuel Karts need a certain amount of bio-fuel per Race. Bio-Fuel needs to be produced or bought from the In-game Shop or other players who producing surplus (by having an more efficient fuel production, or racing less)

aii. Labs and Fuel Production units as well as Storage tanks can be purchased as NFTs from the shop for Raze In-game Token, some will be in the form of Special Event rewards.

b. In the Lab Players will be able to choose to discover certain Technologies, to master any of them, it is an advantage to focus on the discovery of one branch. That encourages specialisation and through that a more vibrant exchange and trade over the marketplace. (Some players might develop super-efficient bio-fuel, while others develop special weapon tech, to get the best out of both, these players will come together and trade their tech or goods in the open marketplace.

c. It will encourage continuous and exponential more expensive upgrades for players to reach higher performance levels of their Karts, labs, workshops. 3. Buying cosmetic upgrades is one of the avenues gamers spend in many modern games most. Without ever truly owning any of the in-Game assets.

a. Paint Job b. Accessories (chrome wheels, exhaust, lights) (character racing cloth, Skin colour, Hairstyle, Helmet) c. Themed events with special and limited NFTs (Halloween, F1, new Year’s) In those Events players will be able to earn nfts by playing or buy them in the Shop.

4. Access NFT Tickets for Priced Races and special events (like winning 1/1 Legendary Tech, Upgrades, Skins).