Token-Reserve NFT Model

The Token-reserve NFT Model is a framework wherein our designated SAE token is securely locked with Element Particles (EPs) during the creation process of each Core-fused NFT, serving as a reserve to support and ensure the value of Core-fused NFTs within our specific gaming ecosystem.

This model ensures that the NFTs minted within our ecosystem maintain their intrinsic value and are supported by a tangible and provable cryptocurrency reserve, thereby enhancing trust, stability, and sustainability in the secondary marketplace. Those NFTs can then be burned to reclaim the SAE in reverse.

The mechanics described in the Token-reserve NFT Model of SA World offer several benefits for our gaming economy:

  • Increasing Token Utilities: In typical models, NFTs may not be closely associated with the governing token, but in this case, they do. The growth of the NFT market within the game will contribute to increasing the demand for the token.

  • Innovative Economic Control: This model introduces a novel approach to overseeing the economy, allowing for independent adjustments to the SAE token locking requirement when creating an NFT.

For instance, in the scenario where game publishers seek to regulate the flow of currency within the economy, they can increase the quantity of locked SAE required to generate an NFT and vice versa.

  • NFT-Value Preservation: The amount of locked SAE serves as the foundation for NFT valuation and ensures the enduring value of NFTs over time.

  • Instant Asset Conversion:

Users have three options for liquidating NFTs:

  • Firstly, users can list their NFTs on SA World's Marketplace.

  • Secondly, users can utilize the burn NFT option to withdraw the token reserve and convert it into their desired currency. The second option may sound lengthy, but we will streamline it into a quick and user-friendly process, represented by a single button for end-users.

NFTs can be burned to receive EP (as outlined in the EP section) or NFT Cores (as explained in the NFT Core section). These materials can be transferred to another Type I Game to mint new NFTs when players become disinterested in their current game.

The second option safeguards the rights of NFT holders even when there is no demand in the secondary market, and SA World ensures instant liquidity.

Additionally, burning NFTs option potentially reduces the supply of that NFT in the market, increasing its value and potentially boosting developer revenue through gas fees.

  • Long-Term Engagement: With value preservation and a well-balanced economy, players are more likely to engage with games over the long term. Moreover, when creators lock tokens in an NFT, it demonstrates a long-term commitment to the project. This can build trust and confidence among collectors and investors, as they see that the creators have a vested interest in the success and growth of the project.

  • Economic Sustainability: The Token-reserve NFT Model provides a safety net, ensuring the long-term value of NFT even when there's no immediate demand for a specific NFT. Therefore, it promotes the long-term sustainability of the SA World gaming ecosystem, ensuring it remains robust and viable over time.

  • NFT Price Stabilization: By tethering NFT prices to a measurable value (the token), this approach safeguards against inflation driven by speculation. This pricing stability fosters a more inclusive environment for latecomers, alleviating concerns about missing out (FOMO) and buying NFTs at inflated prices.

  • Resource Management: The requirement of SAE to activate EP encourages strategic resource management. NFT publishers must consider their energy allocation carefully, adding depth and strategy to gameplay.