How to control the NEXT dilution?
Firstly, let's compare the difference between a normal user and a MOONer:
###
Normal Member
MOON Member
Criteria
No criteria
Stake NEXT Tokens
(Amount To be decided in the first week after IDO)
Cashback reward
Yes
Yes – 20% more
NEXT reward
Yes
Yes – x5 more
NEXT reward cap per transaction
1 NEXT
100 NEXT
Monthly Gift Voucher
No
Yes
Exclusive deals
No
Yes
Referral Bonus (Life time)
10%
20%
It looks obvious for users to lock a certain amount of tokens in their Trust Wallet to become MOONers to earn more NEXT while shopping, but here comes a question: how does ShopNEXT control the token inflation?
A fixed token economy may be simple to implement but proved not ideal in this crypto space; many projects have to change token metrics several times halfway through their development. These unplanned moves cost time, money, and also hard-earned users. As such, the ShopNEXT team chooses at the beginning to build a flexible tokenomics that reflexes better and in time with the growth of our ecosystem. ShopNEXT does so by controlling the four key variables: Cashback to NEXT reward ratio, NEXT reward multiplier for MOONers, NEXT reward cap per transaction, and monthly NEXT reward limit.
  1. 1.
    Cashback to NEXT reward ratio (currently set at $0.1) is the first variable that we can adjust to control the flow on the market. An increase of this ratio to $0.2 will reduce the NEXT rewards by half.
  2. 2.
    NEXT reward multiplier for MOONer is the next important variable. In the beginning, we want to encourage people to onboard our platform so this multiplier is set at 5X. Over time, we can reduce this number accordingly to the growth of monthly users, but this won't be at too low to differentiate the benefit of MOONer and normal users.
  3. 3.
    NEXT rewards cap per transaction is also an important factor to consider. By default, MOONers are capped at 100 NEXT reward per transaction (compared to only 1 NEXT for normal users). Similar to the NEXT reward multiplier, this cap can be decreased to control the token issuing rate to the market.
  4. 4.
    The last variable but not least important is the monthly NEXT reward limit. We use this variable as the "safety valve" just in case we have a huge number of users coming into the platform in a short period. Even though we have 250,000,000 NEXT in our community reward, there will be always a monthly reward limit that once reached the rewarding will be closed until the next month. This can somehow encourage our users to shop as soon as they can. However, please rest assured that this last variable will be for a contingency purpose only, we want our users to always earn NEXT in their shopping!
With above-mentioned variables, we can control the supply side of NEXT very well. For the demand side, firstly we will set the MOONer entry criteria very reasonable for every users to upgrade level. However, in case the NEXT price goes up, which makes the MOON level expensive to achieve, we can open flash sales to allow people to become MOONers with lesser locked NEXTs.
Besides, to increase the number of NEXT holders are holding, we have a monthly competition called MOOners of the Month that encourages MOONers to hold more NEXT as well as do more shopping. Details on this program will be announced in due course. We will also release an interesting saving feature that works like banks for users to earn passive income while holding NEXT.
Now, let's go deeper into specific scenarios to see the token inflation when ShopNEXT has up to a million MAU.
Firstly, from our experience with Shopiness, let's make following assumptions:
  • A user will make 15 transactions
  • The average transaction value is $15
  • The average cashback percentage per transaction is 3%
  • 20% of our Monthly active users are purchased users
  • 20% of purchased users are MOONers.
We will elaborate 4 scenarios where we have 20,000, 100,000, 500,000 and 100,000 MAU, to see how many tokens will be diluted in each case.
###
20,000 MAU
100,000 MAU
500,000 MAU
1000,000 MAU
Cashback to NEXT reward ratio
$0.1
$0.1
$0.2
$0.5
NEXT reward multiplier to MOONer
x5
x4
x3
x3
Total NEXTs rewarded for normal members by shopping/month (a)
72,000
360,000
1,800,000
1,200,000
Total NEXTs rewarded for MOONers by shopping /month (b)
324,000
1,296,000
2,430,000
1,944,000
NEXT rewards for MOTM and other activities (c)
300,000
400,000
500,000
400,000
Estimated # of paid NEXTs from in-app activities (d)
40,000
200,000
1,000,000
2,000,000
Estimated total NEXTs diluted per month (a) + (b) + (c) – (d)
656.000
2,180,000
3,730,000
1,544,000
NEXT earned by a MOONer/month
338
270
101
41
Estimated monthly extra earning/NEXT price (NEXT price here are purely forecasted, it will be determined by the market)
$51/$0.15
$81/$0.30
$101/$1.0
$123/$3.0
From the above table, we can see how, by just control the two factors: cashback to NEXT reward ratio and NEXT reward multiplier for MOONer, we can sustainably grow our MAU up to 1000,000. Look at the estimated number of tokens diluted on the market per month, we foresee that when the our MAU continues to grow, the number of tokens we get from in-app activities like mini-games and quarterly buyback will equal the required amount of token we need to reward all users monthly. That is equilibrium point of our ecosystem. The above example also proves the interesting point of our shop-to-earn tokenomics model: a MOONer spends averagely $225 per month on shopping can potentially earn up to ~$100 back.
Last modified 1mo ago
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