Proposal for Implementing Media Token Economics in CoinAcademy
draft 0.1 by Mintmade, 10 august 2023
Problem Statement
In the current landscape, NFTs based on media content have an unlimited supply, leading to a lack of scarcity that could boost their price growth. This presents a challenge for investors, collectors, and media outlets like CoinAcademy, seeking to create a sustainable and profitable ecosystem. Our mission is to transcend media boundaries and enable a new and sustainable economy for professional media outlets.
Solution Overview
We propose a comprehensive tokenomics model that leverages Media Tokens (formerly known as Minting Points) to create a dynamic and sustainable ecosystem. This model is designed to ensure that every element works in harmony to support investors, collectors, and media outlets.
Token overview
Media Token is a utility token on Polygon Blockchain. It's primary function is to be used as a payment method to purchase digital collectibles of a media outlet where 1 Media Token = 1 NFT.
Currently, the supply of Media Tokens is unlimited and issued by a centralized entity. With this proposal, we want to:
Limit the supply of Media Token
Create a decentralized and autonomous mechanism of token distribution.
Create a sustainable economy for both utility tokens and NFTs.
Initiatives
This proposal covers multiple initiatives focused on a goal to improve current tokenomics.
Airdrop to CoinAcademy NFT Holders
As an initial step, we will airdrop Media Tokens to all current holders of CoinAcademy NFTs. This gesture recognizes the early supporters of our platform and integrates them into the new economic model.
Reward Media Tokens for NFT Purchases
For each purchase of an NFT, buyers will be rewarded with a specific amount of Media Tokens. This amount will decrease quarterly, creating urgency and sustained demand.
Liquidity Pool and Token Burning
Y% of each NFT sale will be added to a liquidity pool of Media Tokens, ensuring market stability. Additionally, all Media Tokens used to purchase NFTs will be burned, decreasing the supply and adding to the scarcity.
Note: Specific details regarding prices, supply, and percentages will be decided in further steps of implementation by the voting mechanism and by DAO members.
Using Media Tokens to incentivize new media publishers to join the ecosystem
50% of Media Tokens will be locked to incentivize new media outlets to join the program. This strategic reserve will foster growth and collaboration across the media landscape. Increasing media coverage will boost the adoption of the token and boost its marketing.
Governance and Community Involvement
NFTs will be used as a governance mechanism in the DAO, empowering the community to have a say in the direction of the platform. Prices, supply, and percentages will be decided through a voting mechanism by DAO members, ensuring transparency and alignment with community interests.
Reasons to Believe
Alignment with Mission: This proposal aligns with our mission to create a sustainable economy for professional media outlets, starting with CoinAcademy.
Incentivizing Participation: By rewarding Media Tokens and implementing a tiered reward system, we create strong incentives for both current holders and new participants.
Dynamic and Sustainable Model: The combination of liquidity pools, token burning, and locked reserves creates a robust and adaptable economic environment.
Community-Centric Approach: Through governance and voting mechanisms, we ensure that the community's voice is central to our decision-making process.
Conclusion
This proposal presents a comprehensive solution to the challenges faced by media-based NFTs. By implementing this model, we can create a thriving ecosystem that supports CoinAcademy and other professional media outlets, while also providing value to investors and collectors.
We invite the community to engage with this proposal, provide feedback, and participate in the voting process. Together, we can build a new and innovative economy that transcends media boundaries and sets a standard for the future of digital content.
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