Tokenomics Part 1
In part 1, I will analyse token allocation and the token release schedule of WidiLand, while in part 2, I will dive deeper into its dual-token model and token use cases.
The most important aspect of any crypto project is tokenomics, or the system of factors that affect the demand and supply of tokens. A good tokenomics will align the incentives of both parties in the projects and balance the demand and supply.
In part 1, I will analyse token allocation and the token release schedule of WidiLand, while in part 2, I will dive deeper into its dual-token model and token use cases.
Token Allocation
Token Allocation is the allocation of tokens to different entities, including investors, project team, community, etc. If the project allocates too many tokens to seed investors, private investors to raise capital, the risk of the price decrease will be very high (because these investors have the opportunity to buy tokens at a cheap price), and if the team receives a large amount of tokens, the players/communities have no incentive to buy tokens because of the lack of decentralization and high inflation rate.
However, the opposite is not always good because too little allocation to the team or investors will make the project difficult to be sustained in the long term.
With WidiLand, the team and advisors receive an allocation of 20% of the total supply, this is similar to most other projects, for example with Matic it is 16% or Coin98 is 20%, thereby creating good motivation for the team and helping them stick with the project for a long time.
To raise capital, WidiLand allocates 2.5% to IDO, 9.5% to Private Sale and 6% to Seed Partner, for a total of 18% of the total supply. For me, this percentage is reasonable, not giving investors too much decision-making power on the project and minimizing the risk of inflation, but we will need to look at the release schedule for a more detailed assessment.
Finally, to ensure the development of the project, WidiLand provided 15% to the Metaverse Fund, 12% to Community & MKT, and 2% of the Reserve was used to develop the game, cover operating costs and expand the ecosystem, which is quite encouraging given that WidiLand has a large number of partners and investors.
Compared to Faraland, they allocated only 5% to marketing and partnerships, while up to 15% to Team and 20% to Foundation, which in my opinion is not ideal for the project's long-term growth.
Learn full about WidiLand Token Allocation here!
Token Release Schedule
Token Release is the plan to unlock a token over a period of time to avoid inflationary pressure and long-term commitment from multiple parties.
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