Iskra is a game changer for crypto gaming. For the first time, game developers can connect with the growing Web3 community while enjoying little to no costs for distribution, and gamers can explore the best next-gen blockchain games while getting rewarded for their participation. Up to 100% of all the platform value generated from the platform services is returned to community stakeholders based on their Contribution Points (CP), which are determined by their contribution to the platform. Everyone is on the same side of the table. Everyone’s interests are aligned.
And thanks to Iskra’s deeply thought-out tokenomics, pumping and dumping will be naturally discouraged. Highly incentivized lockups clearly demonstrate that staking with a long-term mindset is more attractive than cashing out fast.
Let’s do a lighting-speed review of tokenomics in general, then we’ll explain how Iskra’s tokenomics work in particular.
What is Tokenomics?
Tokenomics combines “token” and “economics.” In the blockchain space, tokenomics describes all aspects of a token economy, including the qualities of crypto assets, how they’re produced, how they’re distributed, and how big (or small) the supply is. When you combine these kinds of factors in the right way, a cryptocurrency has value. If the tokenomics are designed well enough, then people are motivated to buy and hold tokens for long periods of time as demand continues to grow.
Iskra supports various blockchain games, many of which will be published on game-specific chain. Iskra is a hub that connects those different gaming ecosystems so Iskra community members can trade and exchange an extensive range of in-game assets in one convenient place. Game studios use Iskra’s turn-key solutions for wallet, bridge, decentralized exchange, etc., so they can develop rich token economies that ensure their games are both enjoyable and rewarding at the same time.
To make all this possible, Iskra uses three types of tokens with clear roles:
1.) $ISK is Iskra’s native token. It gives you governance power, meaning you have the right to propose and vote on initiatives and policies that affect the entire Iskra community. For example, game studios that stake $ISK can submit proposals to lower the royalties or service fees they have to pay to the platform. Other community members staking $ISK can submit proposals to change the distribution of CPs based on platform contribution. Even the Iskra Team is required to stake $ISK in order to secure governance power of the platform!
$ISK can be obtained through the Pioneer NFT and Governance staking reward bought on the various exchanges such as Iskra DEX or earned as a reward for participating in the community. $ISK is used for all the services provided within the Iskra ecosystem, such as exchanging other assets, paying for transaction fees, or charging for a variety of other Iskra features. And if you want to buy Iskra’s Pioneer NFT after 10,000 of them are sold, $ISK is the only way to do it. We’ll talk more about Pioneer NFTs in a minute.
The benefits of staking $ISK on the Iskra platform make it an in-demand token that is attractive to prospective holders for multiple reasons. Aside from gaining governance power, staking $ISK also means you’ll get rewarded with 20% of total $ISK according to the token distribution plan You even earn CP (contribution points) for staking $ISK, which increases your community tier. A higher community tier means a bigger slice of the pie being shared from the Community Rewards Pool, so CPs are a big deal on Iskra.
You can learn more about Iskra’s Community Structure here.
$ISK tokens are capped at 1 billion and 20% of all the revenue from platform fees will be used to burn $ISK so that it can be taken out of market circulation for good.
2.) $iUSD is Iskra’s stablecoin. Used for daily payments, it can be traded for the wide range of token types supported by the platform and serves as a payment method for buying in-game services or items.
$iUSD relieves the selling pressure of $ISK as a payment token instead of a native token. When game studios sell in-game assets, they can be paid in $iUSD. Then they cash out $iUSD instead of $ISK to cover their operating funds, thus reducing the selling pressure of $ISK.
$iUSD relieves the selling pressure of $ISK as a payment token instead of a native token. When game studios sell in-game assets, they can be paid in $iUSD. They then sell those tokens to the market in order to cover their operating funds, thus reducing the selling pressure of $ISK.
Unlike Terra’s UST, $iUSD is secure, 100% backed, and its collateral assets can be checked transparently on the blockchain. $iUSD was specifically chosen by Iskra because we believe it is going to have a central role in the future of all blockchain games. $iUSD can be swapped in exchange for various stablecoins or even purchased via credit cards or wire transfers in the near future to ensure that Iskra’s blockchain gaming ecosystem is welcoming to as many people as possible.
3.) Pioneer NFT is Iskra’s utility NFT. It’s the most effective token for obtaining CP in the Iskra ecosystem, which boosts the holder’s community tier and increases their share of rewards that are distributed from the Community Rewards Pool.
A Pioneer NFT gives the holder (A.K.A. Pioneer) the right to become a node operator on Iskra’s blockchain network. Nodes provide Iskra with computing power and make the platform a decentralized, stable, and trustless system. In exchange for being node operators in Iskra’s ecosystem, holders are able to earn CPs more efficiently than any other community members. Pioneers are also continuously rewarded with $ISK. In fact, 40% of a billion $ISK minted will go to them.
Exactly 40,000 Pioneer NFTs will be minted; only 26,000 of those will be sold publicly through Iskra’s portal on a first-come-first-serve basis. They’ll start out at a price of $6,000 and that number jumps up $20 for every 10 Pioneer NFTs sold. The last one sold to the public will go for something like $57,980. After the first 10,000 Pioneer NFTs are sold, they can only be purchased with $ISK that will end up being staked by Iskra in the platform, as opposed to being sold or distributed on the market.
Get a more detailed breakdown of Pioneer NFTs here.
In a Nutshell
Iskra’s ecosystem is supported by $ISK, $iUSD, and Pioneer NFTs. It’s also designed to seamlessly function with whatever game chain the developer uses so that Iskra community members can trade and exchange a wide array of in-game assets. Lock-up incentives, sensible earning mechanisms, and a long-term tokenomics view promotes sustainable value creation and prevents the pump-and-dump mindset.
Basically, the sooner you join the party, the more fun you can have. So…join the party!
Check out our other blogs to learn more about the future of gaming on blockchain.