Tokenomics of MAD & MMG in the Mad Meerkat Ecosystem Explained

MAD and MMG token both work in tandem to ensure that there is capital flow within the MMA environment and simultaneously promote the reach of Mad Meerkat’s assets.

By
Web3Wire
on
March 26, 2022
Category:
DeFi

Tokenomics of MMA Explained

Mad Market Arena (MMA) is set to be the first game in the high-growth Mad Meerkat ecosystem, marking a first for the ecosystem combining GameFi, DeFi, and NFTs. The game will have two tokens that enable the transfer and flow of capital within the game’s ecosystem.

The MAD token is the governance token of MMA. The token will be available to be acquired by gamers in two ways:

In addition to being the governance token, MAD could also be utilized to purchase Mad Sacks for their in-game character, known as Mad Warriors. Mad Sacks hold the fighting gear and equipment that the NFT characters can use to fight against monsters and other players. The absolute numbers for the breakdown of the supply of MAD tokens are shown below:

  • Total supply of MAD - 15 million tokens (Priced at $0.50 initially)
  • Initial Fully Diluted Valuation - $7.5 million
  • Initial market capitalization of MAD - $500k
  • Initial liquidity - 1 million tokens
  • MMT Staking - 5 million tokens
  • PlayToEarn (P2E) - 4 million tokens
  • MAD Staking - 4 million tokens
  • Developers - 1 million tokens
Source: Web3Wire News

MMG is the primary native token that drives the economics of MMA as it is used as a reward currency in the game. MMG serves as the in-game currency that gamers can earn either by winning battles in the wilderness against monsters or by winning against others in the Player Vs. Player (PvP) mode. These tokens can be utilized to level up the Mad Meerkat in-game characters and enhance the stats of gear and equipment in the Mad Sacks. The details of the underlying tokenomics of MMG are listed below:

  • Total MMG supply: Unlimited
  • Initial supply through MM Finance launchpad: 1 million tokens priced at $0.01 per token
  • Initial liquidity: 1 million tokens priced at $0.01 per token
  • Initial market capitalization: $200k

The intention behind adding multiple use cases for the MMG token is to prevent overinflation and mass-selling of the token by incentivizing gamers to hold the token through various mechanisms like staking.

Mechanics of Token Distribution

The MAD token will use a fair-launch style of distribution which means that there will be a launchpad release contrary to how MMG will be launched. The fair launch will benefit holders of the MMT token and even all the NFT projects that joined the MM ecosystem’s “All under one roof” initiative. The protocol will pair 1 million tokens with the MMF token as initial liquidity. 

The MMG token will be launched via the MM Finance launchpad at $0.01 per token. Post the launchpad release, the token can only be earned by winning battles in the game. Once a battle has concluded, the winner will be rewarded an amount of MMG tokens that are based on the level of the opponent that they have just defeated in the battle. This mechanism makes sure that the battle rewards are pegged to the level of opponents involved in it. MMG tokens can also be locked into the Sanctuary (i.e., yield-bearing farms) to protect their capital and earn interest on the principle staked.

Impact of Battle Results on Token Rewards & Penalities

The game’s mechanics are designed in a way that users learn to pick their fights and users that pick their fight strategically are rewarded for the same. The implications of losses in battles in both modes are detailed below:

  • When the loss is against a “monster,” i.e., a non-player character (NPC) - The gamer will lose 5% of the MMG tokens held in their wallet, which will then be burnt.
  • When the loss is against another player in PVP mode - The gamer that loses will have 10% of the MMG tokens in their wallet transferred to the winner of the battle. 

Since the number of tokens lost in case the gamer loses a battle is based on the total number of MMG tokens that the gamer holds in their wallet, many gamers might be wary of keeping a significant amount of MMG tokens in their wallet. For such gamers, the game will offer gamers the option to stake their MMG tokens into the bank, i.e., Sanctuary, to earn a daily percentage yield of 0.3%. Staked MMG tokens will need to be locked for a minimum of 24 hours before they can be withdrawn. This mechanism promotes the incentive for gamers to hold MMG tokens and guarantee the safety of their funds.

Read our first deep dive into the game mechanics of the Mad Meerkat Arena (MMA) here! The previous deep dive, along with this article, provides an ideal foundation for gamers to understand the nuances of MMA.

Concluding Thoughts

However, the protocol has warned gamers and investors that Mad Meerkat Arena will be a static click-to-play game and not an FPS or MMORPG; thus, they should not be overwhelmed by the hype around the game and the over-invest in these assets. The launchpad dates for these tokens that will drive the MMA environment will be released in due time.

Read our deep dive about the entire Mad Meerkat Finance DeFi ecosystem here!

What is Mad Meerkat Finance?

MM Finance has one of the largest ecosystems in Cronos, offering a decentralized exchange, a yield optimizer, the Mad Meerkat NFTs, a project launchpad, and more. The platform is an automated market maker, and the exchange lies at the center of the DeFi ecosystem. MM Finance enables users to earn passive income by staking crypto assets in liquidity pools, with some yield farms earning up to 496% APR.

Find more about Mad Meerkat Finance here:

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Mad Meerkat Finance is a paid PR Client; Web3 Wire does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials from Mad Meerkat Finance. The project team has purchased our Cronos News & Web3 Wire Media Coverage for $4500 during the month of March. Readers should do their own research before taking any actions related to the company. Web3 Wire is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services re-distributed from Mad Meerkat Finance.

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