8. Token Price and Reward Pool Support Mechanisms
Buybacks
This section of the Whitepaper is dedicated to sum up the main mechanisms of supporting the token price and reward pool via various streams of revenue explained on previous pages. The main mechanism for supporting the tokens price and ensuring the pool of rewards is sufficient for rewards is to introduce a buyback system. In simple words, we will buy $SPAWS tokens back on the open market in amounts that will be enough to fund players earnings. To make sure the business model is cost-effective, we will implement multiple streams of revenue that Solpaws website will generate to cover costs of buybacks. These revenue models will be the following: *Website Ads *Merchandise Sales *Royalties More on each below.
Website Ads
Website advertisements are one of the main ways Solpaws will generate revenue for business operations, which include $SPAWS token buybacks. Website ads via banners are a proven method to generate revenue due to their visibility and reach. Banners strategically placed on webpages can capture the attention of visitors, leading to potential clicks and conversions for advertisers. This form of advertising allows websites to monetize their traffic without directly charging users, thereby keeping content accessible. Moreover, banner ads can be tailored to match the interests of a website's audience through targeted advertising, enhancing relevance and potentially increasing engagement. Overall, integrating banner ads on websites offers a sustainable way to fund operations while offering valuable exposure to advertisers, making it a beneficial revenue-generating strategy. Solpaws will integrate banner ads in-game levels, which will provide a high impression count from players. Impressions are the go-to currency for advertisers working on various advertisement models. Solpaws will implement a cost-effective ad revenue model depending on the amount of traffic and impressions generated. Here are a few of the options which will be used: 1) Cost Per Impression (CPM)
2) Cost Per Click (CPC)
3) Cost Per Action (CPA) One or more models listed above may be used for ad revenue implementation. Factors affecting the pricing and model selection will include website traffic, average time spent per playthrough and average levels passed.
Merchandise Sales
Another mechanism to support the price of $SPAWS tokens and the reward pool is to share a portion of revenue generated from the sale of Solpaws merchandise. As the community grows, a demand for branded clothing and items will be established. Solpaws development team will facilitate the sale of branded merchandise on the website under a legal brand as an e-commerce platform and use this revenue stream for buybacks.
NFT Royalties
One more revenue stream for support of token price and reward pool will be implemented via NFT royalties, which will be set at 5% of the traded NFTs price per unit. As players pass the challenge goals and receive their rewards via NFTs for the first 5,000 challenge winners, a market for Solpaws NFTs may be formed. Each NFT will be a unique model of a character that the player used to achieve the challenge goals, with a rank given to each NFT. The higher the rank of the NFT, the higher demand for said NFT may be formed amongst participants of the ecosystem. Every time an NFT owner sells his NFT to the next person, a 5% royalty will be charged on the sale amount. A portion of this royalty will be used for buying back $SPAWS tokens.
Last updated