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The $UGT Token
Universal Game Token
The $UGT is the Space Token platform’s game token and is used to spice up various gaming activities by incentivizing them. This token has an elastic supply, meaning, it has unlimited supply without any capping. It is specifically meant for in-game purposes and is independent of the governance token.
Although the two tokens coexist within the same ecosystem, their utilities are very different and so is their supply and distribution pattern. On this platform, players receive rewards through ordinary level interactive game activities including mining, Guild quests, PVE battle, PVP battle, monthly events, etc. Also, players get rewards by buying items or trading on exchanges.
Since its supply is elastic, this is kept separate from the utilities of the governance token which as mentioned earlier is capped at 1 billion. This is to maintain the equilibrium of this gaming microeconomy and to accommodate the growth rate of players as the platform gains traction. The governance token holders would have voting rights which gives them a say in its game token utility planning and other governance decisions.
The sink and faucet methodology is used to define the flow of $UGT in and out of the contract. It is important to understand that smart contracts work based on certain predefined conditions also known as events. So, depending on which event is triggered, the inflow or outflow of the game token would take place. These are two sets of activities and while one brings rewards in the form of additional $UGT tokens, the other reduces it. So, the sink and faucet methodology basically refers to a mechanism deployed to add or deduct game tokens from a particular wallet based on the holder’s actions and its outcome.
In the case a faucet is triggered, such players would be rewarded with $UGT being distributed to them. However, in case a sink activity is triggered, a certain number of $UGT is deducted from the holder’s account. Although there’s an unlimited supply of $UGT, a balance between the two is essential to retain the platform’s spirit and to ensure a sustainable ecosystem. Thus, pools are created and the $UGT distributed upon the triggering of faucets is replenished by the sinks that take place within the game.
This is done to maintain the equilibrium and prevent hyperinflation which has been the case in many virtual economies. As hyperinflation and liquidity issues can kill an ecosystem, the platform would periodically implement time-tested strategies based on its current situation. If it needs liquidity, high APYs would be offered or vice versa.
In the future, this decision would also be made after a vote because the platform believes in leveraging the collective intelligence of the community. For instance, community-based burn mechanisms and soft forks as the ecosystem become more advanced. Although certain sinks and faucets would initially be introduced, more activities would be decided by the community through a voting mechanism.
Currently, UGT is defined as an honor value generated through the game and can be exchanged with DNT for cash withdrawal.
Last modified 20d ago