Tokenomics

Tokenomics is a key element of the project and is used as the main criterion for evaluation. This term includes the economic properties and mechanics of the crypto asset. Proper calculation and planning of tokenomics will contribute to the growth of the value of the token in the future.

Foremost, it is necessary to decide on the economic model of the token. The following main models can be distinguished: inflationary, deflationary and ordinary.

Inflationary model - a model in which the number of tokens is not limited in emission. The rise in price depends only on the constant increase in demand, and new tokens are added to the market over time. It is the most famous and similar to fiat currencies.

The deflationary model is characterized by holding a certain percentage of the token from each transaction as a deflationary fee. These commissions will be distributed to holders as an incentive, added to liquidity and/or burned.

The above models have significant drawbacks, namely:

• inflationary tokens can continue to issue their currency without restrictions, which can lead to runaway inflation and token depreciation;

• deflationary tokens generate revenue for simply holding tokens in a wallet, and users are more interested in saving tokens rather than spending them. Without sufficient spending, most tokens will fall out of circulation, and the token itself will become less valuable.

The conventional token model has a limited number of issued tokens, and the monetization of the token is provided by commissions for transactions on the platforms. This model is simple and viable, and most importantly, it covers the main disadvantages of inflationary and deflationary tokens:

• inflation is limited by the fact that the total number of tokens cannot be increased;

• the utility of the project will be of interest to users, the income of the ecosystem depends on the activity of the circulation of the token.

The main way to monetize the TYZ ecosystem will be commissions set in the game, on the launchpad and on the NFT platform. Part of the income will be distributed among TYZ stakers in proportion to the amount and period of the stake, providing investors with passive income. The regular token model fits well with this ecosystem profit distribution strategy. It is also worth noting its popularity, simple mechanics and token economics. All of the above will make the TYZ ecosystem more understandable and attractive. That is why we chose this model for the TYZ token.