$ISK is Iskra’s native token. Besides providing governance power through staking, its other benefits on the Iskra platform make it an in-demand token that allows it to maintain its overall value.
ISK Token Utility
There are 3 main utilities to the ISK Token.
1) Key Currency for the Platform
ISK serves as the key currency of the Iskra platform, ISK tokens are used for all the services (Bridge, Dex, Marketplace, Stable Swap, Launchpad, Wallet, etc.) in the Iskra ecosystem, and also for paying the gas fee for the Iskra blockchain mainnet which will be launched in the future.
2) Governance Token for the Platform
Iskra aims to become a Web3 Community Platform run by the community that shares the value created with its community members. In Iskra’s ecosystem, ISK Token serves as means to secure governance (voting rights: ISK Token holders may acquire their voting rights through Governance Staking and take part in the decision-making process through voting) in a decentralized platform.
ISK Token holders can participate in platform governance through governance stakingand will enjoy the following benefits.
- Voting Rights
By governance staking ISK Tokens, ISK Token stakers may acquire voting rights to participate in important decisions of Iskra platforms, such as deciding game fees and distribution rates to the community. You receive the same amount of voting rights as the number of ISK Tokens staked.
Even Team Iskra itself can acquire voting rights only through governance staking and will exercise the rights to decide on the Iskra platform operation within the same rule as others who have staked their ISKs for governance.
- Governance Staking Rewards
You can enjoy continuous rewards through governance staking your ISK Tokens. ISK holders will share 200 million ISK Tokens, or 20% of the entire ISKs ever minted, as a reward for governance staking to their account for 20 years. That is to say, 10 million ISKs every year for 20 years.
- Contribution Points
Iskra shares every value its platform creates with all its community members in a transparent and fair manner according to their contribution points (CP).
Members may acquire the CP (Contribution Points) for the Iskra community through governance staking their ISK Tokens where higher CPs result in more rewards.
3) Exclusive Purchase Token for PNFT
ISK Token is an exclusive purchase means for the Pioneer NFT which is the license to operate Iskra Platform nodes. Out of the total 40,000 PNFTs sold, those after the 10,000th can be purchased only with ISKs. The ISK Tokens secured by Team Iskra through selling the PNFTs are not sold to the market but staked by Iskra for governance.
ISK Token Value
ISK Token boasts a token economy based on the business logic described below which is structured to create continuous values in the market as it reduces the circulating volume in the market.
1) Token Burn
- There are fees to all blockchain services (Bridge, Dex, Marketplace, Stable Swap, Launchpad, Wallet) on the Iskra platform. 20% of the profits from aforementioned service charges are used for ISK Token buybacks and burns from the market.
- Every year, ISK Tokens are purchased from the market according to a set rule, and those ISKs are burned
- The purchase price, quantity, and number of burned ISKs are shared through notices every year.
The burning process that takes place every year contributes to a reduction in the overall market circulation of ISK Tokens, benefiting the value of ISKs.
2) Stake-inducing Rewards
- Stakers will receive rewards for their ISK Tokens staked for governance according to the staked amount. Every year 10 million ISK Tokens will be provided in return for governance staking and 20% of the entire ISK Tokens ever issued will be used for rewards to those who governance staked their ISKs for 20 years.
- Stakers will also earn platform contribution points through the governance staking and share a whopping 80% of the profits garnered through entire blockchain services (Bridge, Dex, Marketplace, Stable Swap, Launchpad, Wallet) of the Iskra platform based on the community tier and contribution point.
Iskra’s token economy is designed to give more rewards to the participants, including Team Iskra, game studios, gamers, etc. if they do governance staking rather than sell the ISKs to the market. This will organically encourage the participants to scramble to buy ISKs from the market and stake for governance.
3) Permanently Locked ISK from PNFT sales
- Once #30,000 PNFT is sold, Team Iskra will be able to collect ISK Tokens of a value of approximately $760M.
- $760M worth of ISKs prop up the fundamental value of ISK Token circulating in the market.
In a Nutshell
Iskra’s Token economy is designed with a lock-up inducing structure, meaning that in order to maintain your authority you must own and stake your ISK.
A well-structured token economy manages the circulation of ISK Token with sustainable scarcity, maintaining the value of ISK Token and a sustainable growth of the ISK Token ecosystem.
See how our the overall Tokenomics works here: https://news.iskra.world/2022/06/22/iskra-tokenomics/
Check out our blog and news posts to learn more.