As we accomplished our first 2k mints in Stoned Ape Club, some people who are investing in the project are curious about how $TOKE would maintain its value if the apes are generating it everyday and that’s an excellent question to ask especially for investors. So, here's a mini Tokenomic lesson. The value of the coin is decided based on how much supply there is compared to how much liquidity it has.
Example:
USD = Liquidity/Total Supply
0.0004 USD = 20k USD in Liquidity/50M $TOKE
That means, we either want to increase the amount of liquidity or decrease the amount of $TOKE. In this project, there are currently 6 ways to do that.
- Minting every 2k apes
- Real Estate Investments
- Cannabis business revenue
- $Toke burning mechanisms
- Opensea royalty
- When it gets listed to an exchange
The post above sums up how liquidity would be added with every 2000 apes minted and how they can further add liquidity via real estate options.
As for the cannabis business revenue, a percentage of the sales from that business will add to the liquidity of $TOKE. As long as it's doing well, the liquidity will keep adding in. This also makes it different from other NFT games because it does not rely on just the game's ecosystem to survive but also business in real life by being part of a syndication. Mary Jane already has experience of running 2 cannabis businesses, so, this isn’t a new concept for her. The only thing new and exciting is allowing more investors to join in via the NFT project.
Now, let's get to the burning mechanisms for toke. There are several ways for Stoned Ape Club to burn their tokens. The first being Auctions, for certain apes considered rare by the community, whoever bids in this will be contributing to the burning of Toke; regardless of them winning the auction. Another one is by doing raffles and use $TOKE to buy an entry. The next option is giving the community the chance to use $TOKE to buy merchandise and various cannabis products. The $TOKE used for these purchases will also be burned. Lastly, the last one I am excited for, is when generation 2 through 5 of the apes are being minted; that can only be done using $TOKE rather than ETH.
Another revenue source that not too many people in the space are aware of; unless they create their own NFT is that whenever there is a sale on Opensea, the creators get 10% as royalties for selling it to someone else. The same goes for this project when people are selling it on OpenSea. So, let's use this Fed Ape that got sold for 2 ETH as an example. Since this was 2 ETH, 10% goes to Stoned Ape Club, which would be 0.2 ETH. A portion of that will go towards the liquidity of $TOKE.
There's already 5 different ways to positively influence the value of $TOKE. What else is there? Well, the most obvious one would be when they get listed to an exchange. This would make it public for anyone that invest in crypto to buy and sell $TOKE and by doing that, it increases the value of $TOKE. This is a new coin that the project has created, but just like how Axie Infinity has their own coin that increased so much since it's creation, $TOKE can take this path too for those that don't invest in NFTs.
- Note: After the first 10,000 are minted, it will become very sustainable and only the original holders can mint more apes.
- Hope this helps you understand on how $TOKE will work!
- Quick Disclaimer: I am not an expert on Tokenomics this is just what I learn through my investing journey in NFTs especially from the community. The NFT world is always evolving, so it's really hard to also say anyone is an expert in NFTs. Even the ones that made millions with NFTs don't call themselves experts because of the evolving nature of NFTs.