The tokenomia is centered around two types of assets: the Mechanium $MECHA utility token and the NFTs constituting the Mechas and planets. A total quantity of 100,000,000 Mechaniums will be issued and distributed as follows:
- Growth fund managed by the DAO: 8% company operation and marketing.
- Private sale: 13% of the tokens on sale.
- Public sale: 13% of tokens on sale.
- Staking rewards: 26% staking rewards for holders.
- Play-to-Earn managed by the DAO: 20% to run the game economy (player rewards).
- Advisors: 5%.
- Founders: 10% tokens reserved for founders.
- Dev studio: 5% tokens reserved for collaborators and employees of the project, as well as for the development studio.
The Growth Fund and Play-To-Earn pools will be governed by DAO.
Objectives of the MechaChain tokenomia
Tokenomics is at the heart of the MechaChain project and its implementation is a way for us to offer new perspectives in video games:
- Bypassing the usual e-sport circuits to make competition and remuneration through the game (Play-to-Earn) accessible to the greatest number and more remunerative.
- Decentralize the ownership and the in-game economy to make it fairer, more transparent and open.
- Partially decentralize game governance to put the players and the community at the center of development.
- Offer passive income to investors and companies supporting the game.
NFT
In MechaChain, there are several types of NFT:
- Parts that are assembled and a Mecha. They are completely dissociable from the Mecha and have life points. These parts can be repaired.
- Colonies, placed on planets, allow you to earn a percentage of the income from battles.
Purchases are made only in Mechanium on the official MechaChain website and eventually from the game. In case of distribution of coins on other sites like OpenSea, it will be quite possible to buy in a different cryptocurrency like Ethereum.
On each transaction of this type, 5% will be taken: 2.5% to support the development of the game and 2.5% joining the general pilot reward pool, called Play-To-Earn pool (percentage determined by the DAO).
Robot composition
Connecting to the MechaChain website allows you to see the planets of the game which are revealed progressively.
Each planet has a factory that allows mining Mecha NFT depending on the booster concept (cf. Polkamon). For a fixed price, each person can mine and obtain a complete Mecha.
As soon as a new series of Mecha is issued, it is no longer possible to buy other Mecha from previous series in order to support the rarifying of NFT.
The mint price and the time needed to mint a given module will be based on a mathematical formula taking into account the rarity of the part, its quantity related to the number of players and the last second hand price observed on the market.
The NFTs that make up the Mecha are the following:
- The energy core, generator module, which will determine the color of the mecha
- The left forearm module (example: weapon, shield, harpoon)
- The right forearm module
- The left shoulder module(example: weapon, force field)
- The right shoulder module
- The back module (example: wings, reactors)
- The badge displaying its rank and its membership in one of the factions of the universe.
- Two special abilities.
- The body of the Mecha and its serial number.
Each part of the Mecha can be sold separately.
Special case of Mecha Origins
When the first Mecha NFTs are issued, a special series called “Mecha Origins” will be issued in a number of 1 000 and will be available only to all those who have been staking Mechanium for 12 months.
500 Assimilatee Mecha Origins and 500 Pure-Genes Mecha Origins will be available.
The benefits of owning a Mecha Origin are:
- Getting exclusive NFT series from MechaChain, such as skins, weapons.
- Get exclusives on other partnered projects (launchpad).
- Access to a private exchange channel on Discord.
- Exclusive storytelling around Mecha Origins in the story.
- Get physical items, delivered by Mechachain to reward its first founders such as a painting of his Mecha, a printed figurine or a pilot card.
The Origins series is designed to reward MechaChain early adopters.
Planets and colonies
At the beginning, a limited number of planets will be available, the unlocking of new planets will take place over several years as they are colonized.
Each planet has colonizable spaces which are regions (for example 500 regions).
A player has the ability to buy one or more colonies in order to obtain passive income and benefits. This mechanism will fit perfectly into the game scenario:
- When a planet is opened to the public, 10% of the total number of colonizable regions are made available with 50% reserved for Assimilees and 50% for Pure-Genes.
- After seven days, the ranking of the won battles between Assimilees and Pure-Genes is established. Before the fights are possible, the repartition of the colonies will be 50% for Assimilatees and 50% for Pure-Genes.
- Eventually, if there are X% of won battles by Assimilees and Y% of won attles by Pure-Genes, then X% of colonies will be available for purchase by Assimilees and Y% of colonies will be available for Pure-Genes, thus increasing the interest in victories to promote the passive income generated by the different species on the planets.
Indeed, the colonies belong to the species played by the player. This is an important element to understand the passive income system, defined according to the following example and rules:
If the player :
- Is an Assimilee.
- Has colonies on a planet which represents for example X% of the number of colonies of the same planet.
- A fight is won by Assimilees on this planet.
Then he gets X% of the total rewards available in Mechanium following this fight. If, on the contrary, the fight is won by Pure Genes, then he gains nothing. Thus, having colonies allows to obtain a passive income while motivating the players to win victories by surpassing themselves, conscious of the impact of their success on the income of the colonies and on the colonization of the planet.
Tokenomics of a game and stability of the play-to-earn pool
Play-to-earn tokens represent 21% of MechaChain’s total supply.
The purpose of the play-to-earn tokens is to attract a wide range of players into the MechaChain ecosystem, seeking token rewards, and to give ownership and participation to the most active members of the community. Tokens will be used to participate in tournaments and in-game rewards will be paid out in Mechanium. The more difficult the tournament, the higher the rewards. Tokens will also be used to access in-game digital assets (in the form of NFT).
We plan to use the play-to-earn portion of the program to reward key behaviors within our ecosystem, such as:
- Competing in the arena and winning matches.
- Winning tournaments.
- Using the MechaChain marketplace.
- Repairing Mecha parts.
- Using future MechaChain products that have not yet been announced.
- Rewarding bets.
- Earn an income by renting out your NFTs.
A game needs players. By simply playing the game, community members add value to the network and are rewarded. It’s simple, but revolutionary. The MechaChain universe is a vibrant universe, with a community that brings it to life, bartering, trading, buying and selling, allowing this ecosystem to live while providing stability.
The diagram below illustrates one of the possibilities in the case of a team fight.
Click here to get the diagram in high resolution
We can see different notable points like :
- When a game ends, the winning team gets a substantial bonus.
- The losing team also wins Mechanium for the amount of damage, frags, provided help by each player.
- An arena corresponds to a planet which has several colonies. The colonies of the winning species receive a part of the Mechanium won during the fights.
- The costs of repairing damaged Mecha or exchanges in the marketplace are partly reinjected into the play-to-earn pool.
This system allows players to get paid, allows colonies to get money depending on the number of played battles and the winning species, while financing the ecosystem and the development of the project.
Other streams will be added in the future: tournament entry fees, licensing fees, and more, as new opportunities arise.
Free to play case
In order to allow players to test the game without paying, our system allows allocating a part of the Play-To-Earn pool to pay the rental fee of a Mecha and the entry fee to any player who decides to test the game, even if the player does not have a Mecha.
There is a limit to the free-to-play player:
- The player will not be paid if his team wins, unless he is ranked first in that same game by making the most frags.
In this way, we allow everyone to discover the game and enhance a more massive adoption of it.
Staking
Each Mechanium holder will have the possibility to stake his Mechanium. It means to keep it for a defined period of time and thus obtain rewards in Mechanium from the predefined staking pool.
Staking is done according to the liquidity mining concept:
Two staking pools are proposed:
- $MECHA and $MECH/ETH (liquidity token of the pair on Uniswap / Sushiswap)
- The $MECHA pool has a weight of 0.2, the $MECH/ETH pool has a weight of 0.8
- The 6 month lock has a weight of 1, the 12 month lock has a weight of 2
- Staking rewards, once vested, are locked for 12 months, but are added to the stake with a weight of 2
Example: if the standard 6 months staking in $MECHA gives 40% of APY, then :
- 12 months in $MECHA = 80%.
- 6 months in $MECH/ETH = 160%.
- 12 months in $MECH/ETH = 300%.
Thus allowing to stabilize the token is to encourage investors to bring liquidity on the DEX.
In addition, the access to the sale of Mecha origins will be conditioned to a 12-month staking of a defined quantity of $MECHA (1 000 for example)
The staking will be available as soon as the public sale is launched.
Governance: Proof-of-Play, Staking and Vesting
In order to determine the weight of each DAO member, two mechanisms will be implemented: a mechanism rewarding investment and an innovative mechanism called ‘Proof-of-Play’ giving more power to active MechaChain players.
We will issue a DAO token called Mecha Council to influence game decisions. The amount of Mecha Council per player will be capped to allow everyone to speak up and be heard.
Staking & vesting
The power in the DAO of an investor will be partly proportional to the quantity of tokens staked within the ecosystem and to his regularity of play. An upper limit will be applied to this factor in order to avoid too much centralization of the DAO decision-making power.
Proof-of-Play
A second factor, called Proof-of-Play, will significantly affect the voting power of DAO members. This will be calculated based on the number of interactions between the player’s ETH address and the in-game MechaChain smart contract.
Our goal with this mechanism is to align the incentives between in-game players and developers in a new and exciting way.
Growth Fund
The Growth Fund will initially be managed by MechaChain core team and later by DAO. Its purpose is to fund corporate and marketing needs.
In order to maintain the integrity of the fund, the MechaChain team will prepare annual statements that will include an overview of the use of the funds.
The funds will be unlocked in the following manner:
|
Growth fund |
|
|
6 months |
10% |
|
1 year |
18% |
|
1 year+ 6 months |
18% |
|
2 years |
18% |
|
2 years + 6 months |
18% |
|
3 years |
18% |
The principles of the fund are:
- Clear added value for the entire MechaChain community.
- KPIs and goals that unlock the funds (if applicable).
- Maximizing the user experience.
- Integrating video game development.
- Developing community and marketing.
- Allowing the company to have a strong stability and achieve its goals.
Dev Pool
The Dev Pool is managed by the MechaChain core team. Its purpose is to fund project and game development costs.
In order to maintain the integrity of the fund, the MechaChain team will prepare annual statements that will include an overview of the use of the funds.
The funds will be disbursed in the following manner for each allocation:
| Dev pool | |
| T = 0 | 20% |
| 3 months | 20% |
| 6 months | 20% |
| 9 months | 20% |
| 1 year | 20% |
Private sale
We expect to sell 10 million tokens for a total of 3 million euros with 2 targets:
- 6 000 000 à 0.25€
- 4 000 000 à 0.375€
The soft cap is at 1.5 million euros, the middle at 3 million euros and the hard at 4 million euros.
In order to protect the price of the Mechanium, the purchase of the token during the private sale has a vesting mechanism.
20% of the Mechanium purchased during the private sale will be unlocked during the listing (at the end of the public sale) then 20% will be unlocked per month. (Total unlocking of Mechanium in 4 months)
The unlock for the team and advisors is done as follows:
|
Advisors |
Team |
|
|
6 months |
25% |
0% |
|
1 year |
25% |
20% |
|
1 year + 6 months |
25% |
20% |
|
2 years |
25% |
20% |
|
2 year + 6 months |
|
20% |
|
3 years |
|
20% |
If tokens are not sold during the pre-sale, they will be injected into the play-to-earn pool.
Private sale - Bonus round
In case of a quick success of the first 2 rounds of the pre sale, a bonus round will be available with the following objective and conditions:
- 3 000 000 à 0.50€
The delock conditions are the same as for the first 2 rounds.
Public sale
We expect to sell 16 million tokens with a starting price of 0.75€ in IEO with a target of €12m.
We consider three scenarios:
- Using a Miso launchpad to reach a maximum number of investors (Very likely)
- A system of Liquidity Bootstrapping Pools (LBP), in order to protect the buyers during the public sale and the sustainability of the project (likely)
- Organizing our own public sale (likely)
The final solution will be announced to the investors after the private sale and submitted to the DAO vote (necessary, as Miso works in auction, the token could potentially be worth less than at the presale)
If tokens are not sold during the public sale, they will be injected into the play-to-earn pool.
Use of funds from the private sale and the public sale
These figures are indicative. Indeed, the percentages can be revised at any time by explaining to the community why a change is necessary.
- 5% of the funds will be used to provide initial liquidity on DEX.
- 65% of the funds will be used to pay the development team.
- Marketing actions, such as partnerships, market access strategy and outreach, will account for 25% of the total funds raised.
- Legal and accounting fees will represent 5% of the total funds.
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