This system (among many others) allow the project to be sustainable on a long-term vision.
It is also an efficient anti-whale system: when new investors will come they won't have to pay for the early ones. When we analysed most similar projects, a common trend emerged: the inexorable decline in the price of the project's token. The reason for this is that users are converting the project's token into stablecoin. This is totally normal because in the real world it is not (yet) possible to pay your rent, bills or gasoline in $CAKE or $SRV. This price drop is also multiplied by the inflation of the supply available on the market. Traditional DAO tokens like Olympus DAO / Wonderland / Jade / ATLAS show that this business model has not yet proven itself in terms of price stability despite the incentives of the (3.3) rule and other variants. This is how the health point system was born. Instead of encouraging inflation of the circulating supply, we think it is better to reduce it. This mechanism enables us to:
- Limit the supply available on the market
- Reduce the bearish pressure when users take profits
- Offer sustainability to the protocol to offer returns in the long term
The goal for the game is to have gamers for the the few next years to come. We invested a lot in game development, and more than the 6 months roadmap available, we have a long term plan.