Tokenomic Design: The Role of EBA Token (Part 2)
This article is going to determine the design of EBA tokens, and explain how EBA can capture value through the development of Elpis Battle ecosystem.
In the preceding article, we covered the cost change for Elpis Battle's Recruit feature, which means removing EBA tokens entirely from the in-game economy. After the official announcement, there were some debates and arguments among users about the value of EBA in the coming time.
Therefore, this article is going to determine the design of EBA tokens, and explain how EBA can capture value through the development of Elpis Battle ecosystem.
In particular, the article would be divided into 3 parts:
Use cases of EBA
The relationship between EBA & Treasury Fund
The way EBA would capture value throughout the development of Elpis ecosystem.
Use cases of EBA
According to our first Whitepaper, EBA can be used for some in-game features namely recruiting new Heroes. However, EBA is recently removed from the in-game system, going to fully serve as a Governance Token.
In other words, EBA holders will have the right to raise their voice and participate in the developing process of Elpis ecosystem, not limited to the world of Elpis Battle game. Thus, EBA tokens are distributed to the active users actively involved in the development project. Normally, they could be classified into 3 groups:
Active players: Players or Gaming Guild that spend a lot of time and effort to achieve high rankings in Elpis’s events.
Active community builders: Users who actively participate in the process of building Elpis’ community (through social events).
Active contributors: Users who dedicatedly contribute creative artwork, game design, game lore, and participate in building advanced features, analysis tools, or even the in-game system.
Besides, EBA holders also have decision-making power with the project's Treasury Fund.
Treasury Fund and the power of EBA Holders
In traditional centralized companies, financial decisions are mostly decided secretly by small groups of people that have the proper authority. In DAOs, the financial management of the Treasury Fund is implemented transparently by the authority under the suggestions and supervision of the community.
The capital in Treasury Fund comes from players’ activity, for instance, market trading or in-game features consuming energy. Thus, the more players involved in Elpis, the larger Treasury will grow.
The allocation of the Treasury Fund has to be approved by the community and generate positive influence for the project.
For example, Treasury can be allocated for buyback programs or EBA locking, which would reduce the circulating supply of EBA tokens then facilitate the token's price increase. Otherwise, it is usually used to support marketing campaigns at attracting new users, directly stimulating the growth of the Elpis Battle community.
Those are just two of several ideas we've been thinking about, and we'd love to see more ground-breaking opinions from the community.
To brief, the link among EBA token - Treasury Fund - Elpis Battle Player Community is extremely steadfast and firm, even if EBA is not used in the game. Simultaneously, the clearly defined division between EBA and MEG would solve smoothly the conflict between players and investors (explained clearly in the previous post).
How is EBA going to capture value from the developing process of Elpis ecosystem?
There are a number of methods to increase the price of EBA without certain game utilities. Nevertheless, the most sustainable way is to expand and utilize Treasury Fund wisely under the supervision of the community.
On the other hand, the expansion of the Treasury Fund is closely linked to players’ activities in Elpis games. With the long-term vision in GameFi, we will continuously develop an ecological system of several P2E games that are linked through the story, in-game products, and tokenomic.
As a result, EBA will be the Governance token of the whole Elpis ecosystem in the future. Simply put, EBA is going to play a similar role as the stock of a game company, which is a collection of several small game studios.
The difference is that the Elpis ecosystem is built in the form of DAO because we believe in the power of a fair system and a strong community.
In the next article - also the last one of the Tokenomic explanation series, We'll give a definitive explanation of how Elpis DAO is shaped and operated.