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Token Utility
Overview
Guild of Guardians Gems is a utility token that is used in the Guild of Guardian mobile game.
The primary purpose of the Gems is to serve as an in-game currency that players need to spend whenever they want to mint a new asset to the blockchain, make a primary sale purchase, or vote on important game decisions.
Utility #1: Gems are needed to mint gaming NFTs
- Creating a blockchain asset in Guild of Guardians is a premium action that requires Gems.
- Examples of in-game activities which involve minting new blockchain assets include:
- Merging (combining several heroes of one rarity tier to create one hero in a higher rarity tier);
- Crafting (working together with your guild to collect resources to craft tradeable items);
- Ascension (upgrading a hero to add a star and increase its level cap);
- Whenever Gems are spent to create a new asset, all Gems spent are moved into a Rewards Pool to be distributed back to Gems holders (see Use Case #3 below).
- The Gem cost of minting a particular NFT will increase with each NFT minted, which will encourage the early use of Gems and serve as a mechanism to regulate the supply of assets and avoid the scenario of the market being flooded with items.
Utility #2: Gems are needed to buy assets in a primary sale or as a fee in secondary sales
- Whenever a player purchases assets in a primary sale (from the Developer), 20% of the sale value must be paid in Gems and sent to a rewards pool.
- Whenever a player trades assets in a secondary sale (peer to peer), 20% of the marketplace fee that the Developer charges must be paid in Gems and sent to a rewards pool.
- To simplify the user experience, we will likely allow all purchases to occur in a single transaction and automatically purchase Gems from a DEX and transfer those Gems to the rewards pool on the buyer’s behalf.
Utility #3: Gems are distributed back to players via Active Staking rewards
- Gems spent to mint, buy or trade assets will be sent to the Rewards Pool.
- Gems in the rewards pool will be given away via active staking, where players must stake and actively participate in the game to receive rewards. There will be two stages of active staking based on implementation timelines and development.
- Acting staking stage 1 will commence upon the soft launch of Guild of Guardians mobile game, estimated to occur early 2022.
- Active Staking Stage 1: Vote + Stake
- Gems in the reward pool are distributed to everyone who votes on meaningful game decisions.
- The developer will decide what decisions get put to the vote. Examples of topics include awarding development grants or changing the reward weighting for player rewards. Any vote will be considered binding if it passes the prescribed minimum requirements, for example, 80% acceptance.
- Gems holders must both stake and vote to earn rewards, with rewards being proportional to their staked amount.Gems may be subject to transfer restrictions.
- Active Staking Stage 2: Play + Stake
- In the long-term, we plan to distribute Gems in the reward pool to everyone who “plays the game” instead of everyone who votes. This structure will be designed to grow and enhance the overall game and economy for all participants.
- Gem holders must also stake to receive rewards, with total rewards proportional to the Gems they stake. Gems rewards may be subject to transfer restrictions.
- The definition of play the game is intended to require active participation, and for example, may include in-game achievements that require 30 minutes of playtime per week.
- To build a more cooperative community, Gem holders will be able to delegate their “plays the game” work to other players in exchange for sharing a percentage of their Gems rewards. Implementing this change may require passing a community vote and will be subject to development timelines.
Utility #4: Used for Governance and Voting
- Token holders will be able to vote on token-related proposals via decentralized governance. Proposals will include topics such as how to allocate token reserves, voting on developer grants, activating daily rewards and changes in token supply. Other proposal categories may be added via the appropriate decentralized governance processes. Our goal is to continuously add to the utility and decentralization of the Token through user voting.
- In order to submit a proposal for voting, an individual needs to own a certain threshold of tokens, which will be determined at a later date.
- The Foundation has the right to propose items to be put to vote that are seen as positive for the ecosystem as a whole, and will perform a facilitation role in the curation of proposals that will be voted on by all Token holders.
- All votes that successfully pass will be executed accordingly and as soon as feasible given consideration of commercial and technological implementation limitations.
- Protocol governance is performed on L1, with wallet balances sourced across both L1 and L2. The more tokens a user holds, the greater their voting power.
Last modified 8mo ago
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