💰Tokenomics

Between the Single Token Economy and the Dual (or Multi) Token Economy, teams must choose for the long-term economic structure of their ecosystem. With a single token model, the higher the token price, the higher the hurdle to enter the ecosystem. Conversely, the lower the token price, the more people start to lose interest, which is why many projects use a dual token model.

However, many leading projects using the dual token model have failed to sustain their token economies. Governance tokens with limited minting capacity were not enough to sustain the ecosystem, so they created a utility token with unlimited minting capacity. Utility tokens have the advantage of increasing the utility of the token in the ecosystem and creating a stable economic structure because they are generated solely by the users of the ecosystem. Therefore, the more people participate in the ecosystem, the higher the price of the token. However, when the cryptocurrency market goes into winter, the participation in the ecosystem decreases significantly, which means that the inflation of the utility token increases due to the participation of people, but the number of people using the token starts to decrease. In this way, projects that attracted a lot of people with high returns in a short period of time start to experience the collapse of the token economy due to hyperinflation.

This is why many projects have largely failed to maintain a tokenized economy. OrbCity uses a dual token model like most projects, but we control the total number of NFTs issued by creating seasons. By limiting the number of NFTs that generate utility tokens, inflation occurs slowly. It also introduces the value of time into the ecosystem, which further slows down token inflation. However, this structure has the disadvantage of limiting the ability to engage a large number of users in the ecosystem. That's why we created $Scrap, a utility resource that is not a token. Even without owning NFTs, many users can join the ecosystem to earn $Scrap. While $Scrap cannot be traded or transferred, it is used to promote participation in the ecosystem.

Therefore, the OrbCity economic structure consists of $ORB, a governance token, $LAY, a utility token, and $Scrap, a non-transferable utility resource. Our team aims to create a stable economic structure and a system that allows many people to enjoy our ecosystem. At the same time, we aim to stabilize the token economy by creating a sustainable business model. We are confident that in the future, OrbCity will become a representative success story of adopting a multi token model.