🪙$XP

A Robust Designed Native Token Built For Community

Last updated 1 year ago

🪙$XP

A Robust Designed Native Token Built For Community

$XP is PolkaFantasy's native utility token.

Users can swap $XP between the 3 available blockchains: Ethereum, Polygon, and BSC using our $XP Bridge.

The total supply is capped at 200,000,000. No further amount will be minted to maintain the scarcity of the token. The initial circulating supply is about 7%.

The tokens will be distributed to the following stakeholders:

Fundraising – 20 % of the tokens are allocated for fundraising as follows:

Private investors - the contributors that participated in the private sale round - 17% (6,800,000 tokens)
Launchpads – 2% of tokens are allocated for the public community sale on credible tier 1 launchpads. (800,000 tokens)
Community Campaign – 1% of the tokens is allocated for the community pre-sale (400,000 tokens)

XP Staking Pool – long term community rewards - 20% (40,000,000 tokens)

NFT Staking Pool – long term community rewards - 15% (30,000,000 tokens)

Purchasing Rewards – rewarding users for buying game assets or other NFT items - 10% (20,000,000 tokens)

Partner Token Swaps – to swap their tokens on multiple blockchains - 5% (10,000,000 tokens)

Promotional Rewards - to ensure excellent marketing efforts 5% (10,000,000 tokens)

Team - rewarding the core team members for their full-time effort to our success 7% (14,000,000 tokens)

Advisors - rewarding the advisors for their effort to our success 3% (6,000,000 tokens)

Development - to ensure development efforts 5% (10,000,000 tokens)

Reserves - reserve and treasure for future fundraising 10% (20,000,000 tokens)

Team and Advisor $XP token will be unlocked linearly. The cliff (from IDO) and vesting schedule are subject to changes based on the market and project situation.

IDO (Initial DEX Offering) was successfully conducted on 10 September 2021. The launch price is US$0.05.

At the time of this writing, all vested IDO tokens are unlocked already, therefore the selling pressure has been reflected already.

Token Utilities

PolkaFantasy’s native token, $XP, is essential for the whole PolkaFantasy ecosystem. $XP is the only governance token for all PolkaFantasy-original projects in long term. In other words, any blockchain games and services that produced by PolkaFantasy will utilize $XP one way or another.

$XP is utilized across the ecosystem such as games, FantasyPad, NFT marketplaces and staking, etc. Utilities will be increased as the PolkaFantasy grow.

Price Stabilization

PolkaFantasy team is committed to the long-term prospect of the project. Therefore, we always act with community’s long-term benefits in mind.

Our team believes that token price will always reflect the project value at some point. Thus we strive to build the best products, in order to heighten our token value.

At the same time, projects have to sustain the operation in a healthy way. For some projects, they draw revenue from their token reserve, and this usually mean a heavy selling pressure. In PolkaFantasy, we committed to several points below to create a healthy environment for token value.

No reserve token is minted or sold so far.
Team & advisor tokens are cliffed and vested in long term. No token is released to any individuals yet.
To be listed on CEX strategically to avoid unnecessary dumping pressure during bear market.
Not to release campaign or marketing token to create upward pressure.

We believe these are only some of the steps and further actions could be employed to boost $XP in long run. At the end of the day, PolkaFantasy is committed to build and deliver. And our team believes this will be the best step we can contribute to our community.

Burning

Few tokens are designed to replicate the economical scale of the real world. In most cases, price of the tokens with limited usage population is often determined by sentiments instead of Quantity Theory of Money, which famously states:

where Md denotes the demand for nominal balances, P price level, Y real GDP, and υ the velocity of money.

In actual economy where velocity of money is somehow constant, with total income used in consumption, increases in the quantity of money lead to a higher price level, which in turn implies the depreciation of the money value. This is easy to understand in terms of supply and demand. The theory works because money is used as medium of exchange at a significant scale, with only a small fraction of money from monetary base required as reserve in banking system.

In the world of cryptocurrency, the situation is a bit different.

There is no reserve banking system for most projects. As a result, monetary base is equal to money stock in general. In this case, the theory of supply and demand works largely at the circulation level instead of monetary stock.

The reason is simple: As long as project is holding a large reserve, the token circulation is not affected by fractional burning of the token (unless project is constantly dumping its token on the market). Thus, the supply of money on the market is basically the same as pre-burning. Plus, in the decentralized world, there is no way to burn the token at holder side. Psychologically, token-burning creates very little sense on the change of money supply. And any arbitrary opportunities of price movement on market are usually taken by very small fraction of traders at once, making price movement invisible to most people. Therefore, price level is not affected in long term, making burning a very inefficent tool in increasing token value.

Another reason is that a burning mechanism can create a disincentive for token holders to spend or use the token, as they may be reluctant to decrease their overall supply. This can negatively impact the utility and adoption of the token. Therefore, burning might not be the most effective way to bring token price up. Instead, factors like token's utility, market sentiment, and overall ecosystem development also play a role in determining the token price. Therefore, in PolkaFantasy we would only burn token if we need a strong necessity. We will leverage on building instead to bring value to tokens in long term.

*Tokenomics is subject to improvements according to ecosystem development and market situation, and/or with the emerge of better tokenomical model in the industry.

*Monetary base: the total amount of a currency that is either in general circulation in the hands of the public or in the form of deposits held in the project's reserves

*Money stock: the total amount of money supplied by the financial sector to the entire economy