Tokenomics
Overview
IdleFi will have two tokens
Name | Token | Supply |
---|---|---|
TKN | ERC-20 | Unlimited |
NFT | ERC-1155 | Unlimited |
Owning NFTs will yield TKNs.
Burning TKNs will mint NFTs.
Why Unlimited Supply?
If the total supply is unlimited, then where is the value?
Owning NFTs will yield TKNs at a fixed rate, but the cost of minting NFTs is not fixed.
The more NFTs minted, the more it'll cost to mint the next one. The more it'll cost, the longer it takes to mint.
Even though the total supply is unlimited, the limiting factor is time.
Dual Bond Curve
IdleFi utilizes a dual bond curve. The blue line is the TKNs yield, while red line is the cost of the NFT. The project aims to model the relationship between the two curves over time.
Single Player Example
Assuming Alice is the only player. The cost to mint NFTs is at higher rate than yield. This means, the more NFTs minted, the more time it takes to mint the next one.
Alice owns a NFT that yields 1 TKNs/second
NFT #1 costs 5 TKNs to mint
Alice waits 5 seconds to get NFT #1 (1 TKNs/second * 5 sec = 5 TKN)
Alice owns NFT #0 & #1 that yields 2 TKNs/second
NFT #2 costs 10 TKNs to mint
Alice waits 5 seconds to get NFT #2 (2 TKNs/second * 5 sec = 10 TKN)
Alice owns NFT #0, #1 & #3 that yields 3 TKNs/second
NFT #3 costs 15 TKNs to mint
Alice waits 5 seconds to get NFT #3 (3 TKNs/second * 5 sec = 15 TKN)
etc.
NFTs | Yield - TKNs/second |
---|---|
1 | 1 |
2 | 2 |
3 | 3 |
NFTs | Cost of NFT |
---|---|
1 | 5 |
2 | 10 |
3 | 15 |
However, IdleFi is not a single player game.
Multiplayer Player Example
Since this game is on chain, multiple players are involved. Let's assume there are two players Alice and Bob. If Alice does not mint her NFT today, then she can risk paying more in the future. This phenomena is called FOMO effect 😂.
Alice owns a NFT that yields 1 TKNs/second
Bob owns a NFT that yields 1 TKNs/second
NFT #1 costs 5 TKNs to mint
Alice decides not to spend her TKNs
Bob mints NFT #1 for 5 TKNs
NFT #2 costs 10 TKNs
Since Alice ignored her opportunity to mint a NFT for 5 TKNs, her next mint will cost her 10 TKNs. She will have to wait twice as long to get the same NFT Bob minted. This is compounded when many players are involved. By not taking advantage of Alice's time, she must pay a higher amount. Time is not free.
Tokenize Time
Our value of time increases as we age.
Players get rewarded for their time spent in game. Those rewards are represented as an NFT. And since time is limited, the NFT is also limited. Players are essentially trading each others time. Those who invest early and hodl will be rewarded in the future. Those who start late can buy back lost time.
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