Economic Analysis

Emission model

MineCrypto’s economic model will evolve with time, reducing emissions as organic ways of revenue for the server are generated, reaching a final state where emissions are nearly zero. Still, the whole revenue of the server is shared with its holders.
We are convinced this is key for sustainability in the medium term since one of the reasons GameFi tokens usually crash is because:
  • They are printed without limit. At some point, you will have so many tokens it will be tough to hold their value
  • There is no value to the token other than re-investing to earn more of the same token
In our case, our product (a Minecraft server) generates actual revenue, and we will distribute that to the token holders. Our token is hard-capped (90M), so once that amount has been printed, the tokens rewarded will come from the tokens coming from the revenue (marketplace, rank repairs, breeding, cosmetics, loot boxes, lands). Also, our token $MCR token will have uses outside of re-investing to earn more $MCR.

Phase 1 - Inflationary (now)

We start with a token distribution for completing daily quests, tournaments, rankings, etc.
*During this phase, most of the revenue is either burned or sent back to the reward pool.

Phase 2 - Sustainability

Printing will stop once we reach the 90M token cap and have acquired enough players to create a profitable business.
Once this phase is reached, the server will be owned by its investors, and its revenue will be shared between them. Top Minecraft servers like Hypixel generate more than 2M$ of net income each month. We think a blockchain-based server can capture even more revenue.

Phase 3 - Deflationary/User Owned

Instead of redistributing all revenue back to NFT and token holders, part of the revenue will be burnt forever. 10% of the revenue will go to burn $MCR. This will help the stability of the token since no more tokens are being minted, and we are burning tokens.
We are confident we can reach this phase because we have an actual game that generates revenue. We are confident our revenue will be big enough, so players will keep competing to get more tokens and NFTs to get a piece of that revenue.
Last modified 9mo ago