Notcoin's economic model is centered around a deflationary design, balancing supply and demand through a unique token burn and reward mechanism, creating a sustainable revenue ecosystem for players and developers. As an integrated 'play-to-earn' game on Telegram, its token economic design serves both in-game interactions and lays the foundation for the expansion of the Web3 ecosystem.
Token issuance and initial distribution
Notcoin (NOT) has an initial supply of 1 billion tokens, of which 80% is released through in-game mining, and 20% is reserved for ecosystem development and community incentives. The mining mechanism is based on players' interaction frequency in Telegram chats: sending messages, participating in game tasks, or inviting friends all yield NOT rewards. This design encourages user activity while avoiding token inflation through gradual release.
Deflationary Mechanism: Dynamic Burn and Fee Recovery
Notcoin introduces a dual-layer deflationary mechanism to maintain token scarcity. First, a 2% transaction fee is charged for each transaction, with 1% burned directly and 1% going into the developer reward pool. Second, specific high-value actions in the game (such as synthesizing rare items or participating in arenas) trigger additional token burns. For example, synthesizing a golden item requires consuming 1000 NOT, of which 20% will be permanently destroyed. This design ensures that token supply automatically reduces with ecosystem activity, driving up NOT's value.
Developer Incentives and Ecosystem Fund
Of Notcoin's 20% pre-allocated tokens, 10% is used to support developers in creating games or tools based on NOT. Developers can apply for funds by submitting proposals, with funding usage directions including game optimization, cross-chain integration, or community activities. For instance, a developer planning to create an NFT marketplace that supports NOT payments can apply for funds for smart contract development. This model binds token holders and ecosystem contributors, forming a positive cycle.
Expansion of token application scenarios
The use of NOT gradually expands from in-game item purchases to the Web3 ecosystem:
1. Governance Voting: Holding NOT allows participation in rule adjustments or new game launch decisions on the Notcoin platform.
2. Cross-Chain Payments: Through the TON Foundation's cross-chain bridge, NOT can be exchanged for other blockchain assets (such as USDT).
3. DAO Staking: Users can stake NOT in the Notcoin DAO to receive revenue sharing from ecosystem projects.
This multi-scenario application enhances NOT's liquidity and reduces selling pressure risks.
Challenges and Optimization of the Economic Model
Although the deflationary design is beneficial for value accumulation, excessive burning may lead to liquidity shortages. Notcoin responds by dynamically adjusting the fee rate: when the NOT price falls below a preset threshold, the burn ratio of the fee drops to 0.5%, with the remaining 1.5% going into the liquidity pool; when the price rebounds, the 2% burn rate is restored. Additionally, the platform plans to launch NOT derivatives (such as NOT futures), allowing users to hedge risks and stabilize market sentiment.