🖥️SMP Token Economics
Last updated
Last updated
An economics circulation diagram representing the flow of SMP token issuance, distribution, and incineration is shown above. This circulation diagram categorizes SMP token stakeholders into four different roles and describes typical use cases.
Game Player / Consumer
Players and service consumers
Investor / Supporter
Users who purchase and operate tokens for investment or protocol support
Contributor / Creator
Users who contribute to the development and bug fixes of services and platforms, as well as creators who provide content
Individual users are not strictly classified into any one role, they can have multiple roles. For example, a user who is usually involved as a Game Player may act as an Investor by managing some tokens or may act as a Contributor by participating in a game's bug bounty.
In addition, sections that are more closely related to each other in the econometric cycle chart above are classified as sub-economies and categorized as Economics 0 through 3.
The left side of the circular diagram shows the economics of the part where the Developer / Publisher supplies content and the Game Player/Consumer consumes it. The Developer / Publisher uses the Platform function and pays a fee for its usage. In the absence of crypto assets, this is identical to the structure of a typical Web2 platform service.
We will consider making it possible to pay Platform fees in Economics 0 solely in SMP tokens, a crypto asset. In the same way that fiat currency issued by a state is used to pay taxes in that state, we will seek to underpin the value of SMP tokens by making them a means of payment for Platform usage fees. Developers / Publishers using the Platform are able to purchase SMP tokens through exchanges and use them for payment. DMM Crypto, the issuer of SMP tokens, will balance supply and demand by supplying newly minted SMP tokens to the exchanges and burning the tokens retrieved through the Platform.
The price of SMP tokens fluctuates according to the supply-demand balance and is therefore subject to trading by Investors. SMP tokens purchased for investment purposes are used for providing liquidity to LPs (liquidity pools) on DEXs, contributing to the stability of the token's value. Another characteristic of token economics is the large influence of Supporters, who buy and support tokens not only for investment purposes, but also in the sense of empathy for the vision and support for the service. We also consider the information that we provide to our Supporters very important.
In addition, users who have contact with the Platform and Applications, such as Game Players / Consumers and Developers / Publishers, will be offered special NFTs that can be earned by holding SMP tokens for a long period of time, and through these NFTs, they will be offered preferential services on the Platform and Applications. This will encourage long-term token ownership and stabilize the token price.
As the token value stabilizes, the convenience as a payment method will also improve. We will expand the utility of SMP token payments on Platform and Applications, and aim to further expand the ecosystem. The scope of SMP token payments by Game Players / Consumers will be expanded, and a portion of this amount will be returned to the users after being invested in the Treasury Pool. The Treasury Pool will serve as a source of rewards not only for users who make SMP token payments but also for Contributors / Creators contributing to the ecosystem in other ways.
There are two general directions for SMP Token utilities: token consumption points and incentives for token holders. See the list below for utilities under consideration for each of these perspectives. It also describes the use case of community redemption as a way to obtain SMP tokens outside of exchanges and transactions.
Developer / Publisher
Fees for use of platform-provided functions
Authentication functions
Member functions
KYC functions
Bridges
Customer support
Analytical functions
Financial service fees
Lending
Custody
Consumer / Game Player
Premium member features
High-performance wallets
Original web3 domains
Purchase limited NFTs
Commemorative currencies
Limited domain name
Developer / Publisher
Platform usage prioritization (NFT)
Finance service prioritization (NFT)
Consumer / Game Player
Premium member function benefits (NFT)
In-Application prioritization (NFT)
Priority purchase rights NFT for limited NFTs
Various NFT ballots (popularity and decision-making voting, boosting)
NFT for new services on SMP
Various grants
Treasury pool reduction
Rewards for contributions to the ecosystem
Bug bounty
Content supply
Service and node operation (Sequencer, etc.)
