MINGO
  • Executive Summary
  • Introduction
  • Technology Foundation
  • Product Ecosystem
    • MINGO Wallet
    • MINGO Play
    • MINGO Ticket
    • MINGO Market
    • MINGO Launch
  • Tokenomics
    • Token Distribution Breakdown
    • Token Utility
    • Revenue Model
    • Deflationary Mechanisms
  • Ecosystem Growth
    • Community Rewards
    • Community Rewards Portal
  • Roadmap
  • Disclaimer
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  • Transaction Fee Burns
  • Staking & Lock-Up Periods
  • Ecosystem Incentives & Rewards
  • Long-Term Deflationary Outlook
  1. Tokenomics

Deflationary Mechanisms

MINGO employs several deflationary mechanisms designed to gradually reduce the total supply of MINGO tokens, enhancing scarcity and value. These mechanisms are integral to our economic model, ensuring the long-term viability and appreciation of the token within the ecosystem.

Transaction Fee Burns

A portion of the MINGO tokens used for transaction fees across the various platforms within the ecosystem is permanently removed from circulation. This includes:

  • Ticket Sales: From the 7% commission charged on MINGO Tickets, 1.5% of the total revenue generated in MINGO tokens is allocated to token buyback and subsequent burning.

  • NFT Marketplace: Similarly, from the 2% commission on sales in the MINGO Market, 20% is dedicated to token buyback and burning.

  • Wallet Transactions: The small fee of $0.02 charged for wallet transactions also contributes to token burns, with $0.01 of these fees used to purchase and burn MINGO tokens.

Example Impact:

  • In a high-profile event generating $850,000 in commissions, $255,000 worth of MINGO tokens would be burned, reducing the total token supply and helping to create upward pressure. At a token price of $0.10 this would result in a 0.07% reduction in the total supply

Staking & Lock-Up Periods

Staking MINGO tokens is a critical component of our ecosystem, serving a dual purpose of enhancing network participation and acting as a deflationary mechanism. By encouraging users to lock up their tokens, staking effectively reduces the number of tokens available for trading on the open market.

Deflationary Influence Through Token Lock-Up

  • Reduced Market Liquidity: When users stake their tokens, particularly for participating in launch events or securing ticket allocations, these tokens are temporarily removed from circulation. This lock-up decreases the overall market liquidity, which can help stabilize or increase the token price by creating a scarcity effect.

While staking is an important aspect, it is part of a broader set of deflationary mechanisms designed to ensure the long-term viability and value appreciation of MINGO tokens. It complements other strategies such as transaction fee burns and reward distributions, providing a balanced approach to managing the token supply and encouraging sustainable growth.

Ecosystem Incentives & Rewards

Part of the MINGO token supply is allocated for community rewards and incentives. While this mechanism does not directly burn tokens, it slowly distributes tokens in a way that promotes holding and reduces market supply pressure:

  • Community Engagement: Tokens awarded for content creation, platform engagement, or promotional activities are often subject to vesting or holding periods, which aligns community members’ interests with the long-term success of the platform.

Long-Term Deflationary Outlook

The combination of these mechanisms ensures a consistent approach to reducing the total token supply of MINGO. By creating scarcity through token burns and encouraging long-term holding through staking and rewards, MINGO aims to enhance the intrinsic value of its token. This strategy is designed to not only preserve but potentially increase the token's value as the platform expands and the demand for the ecosystem grows.

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Last updated 10 months ago