Tokenomics

Tokenomics: Leverage and Dynamic Supply Mechanism

DarkHorse Fantasy Markets is powered by the $DRK token, utilizing a unique burn-mint model and dynamic supply mechanism that adjusts based on user performance, in-game outcomes, and platform activity.

  • Mint CA: DarkikDu2FJ5gsmN7yQruGsQ76vUTdaF3G1LJXsQHSz4

  • Burn-Mint CA (Used in Gameplay): Hors46uNtVBgJWqhiZT91nSHjMZB8fqFvAnDBcm4cBA

  • Promotions, Airdrops, Marketing: EtV6CrbTjRrSYKNHEJZfp1Gvu3CNugmg4XgtfhRyZw2Y

1. Initial Token Supply

The total initial supply of $DRK tokens is 250 million (250,000,000), allocated as follows:

  • Liquidity Pool: 215,000,000 $DRK (86%)

  • Marketing and Partnerships: 35,000,000 $DRK (14%)

    • Reserved for marketing, strategic partnerships, air-dops, promotions and ecosystem growth to drive user acquisition.

  • Team Allocation: 0 $DRK (0%)

    • The team receives no initial allocation and must buy from the open market like everyone else. Team compensation comes solely through accrued transaction fees, aligning the team’s incentives with the platform’s long-term success.

2. Dynamic Burn-Mint Model

The burn-mint model is essential to maintaining balance in the $DRK token supply. It ensures that the supply of $DRK adjusts based on platform activity, striving toward a deflationary outcome as more users participate.

  • Minting Tokens: When users win on the platform, new $DRK tokens are minted and rewarded based on their performance and leverage.

  • Burning Tokens: When users lose, their tokens are burned and permanently removed from circulation.

This constant adjustment helps create an economically balanced ecosystem that rewards successful traders while reducing the supply of $DRK tokens in circulation when traders lose.

3. Leverage and Impact on Tokenomics

Leverage is a key feature in DarkHorse that can magnify both gains and losses, thereby influencing the token supply through the burn-mint model.

  • High-Leverage Wins: A higher leverage position results in a more substantial gain, which leads to a greater amount of $DRK being minted as a reward.

  • High-Leverage Losses: Conversely, when users lose on high-leverage positions, more $DRK tokens are burned, amplifying the deflationary effect on the token supply.

4. Deflationary Target and Dynamic Supply

The goal of the burn-mint model is to drive the platform toward a deflationary state, where more tokens are burned than minted over time.

  • Mint Mechanism: New tokens are minted to reward successful positions.

  • Deflationary Target: The long-term goal is for more tokens to be burned than minted, creating scarcity and driving potential value appreciation.

The platform will monitor and adjust the burn-mint rates to ensure a 60-40 balance (60% of the initial supply as a lower bound), maintaining a healthy token economy.

5. Roadmap: Transaction Fees Adjustments

As the platform grows, we plan to reduce the developer fee from 1% to 0.5% and introduce a 1.5% burn fee on every transaction, bringing the total transaction fee to 2%. This means:

  • 1.5% of every transaction will be burned, increasing the deflationary pressure on the $DRK token supply.

  • 0.5% of every transaction will go to the development team for ongoing platform maintenance and upgrades.

This fee adjustment aligns with our long-term goal of creating a deflationary token while supporting platform sustainability.

6. Long-Term Impact on Tokenomics

As the $DRK token economy evolves, the deflationary pressure from burns combined with user-driven supply from minting will allow for adaptive responses to platform growth and activity.

  • More burns from high-leverage losses, fees or liquidations will increase token scarcity.

  • Adaptive tuning of minting and burning will ensure that the platform can respond to user activity, helping keep the economy balanced.

Summary of Tokenomics:

  • Initial Supply: 250 million $DRK tokens, with 86% allocated to liquidity and 14% to marketing and partnerships.

  • 50% of LP tokens burned at $250k Market Cap.

  • 100% of LP tokens burned at $500k Market Cap.

  • $DRK Burn-Mint Model: The supply adjusts dynamically, minting new tokens for winning positions and burning tokens from losses.

  • Leverage: Amplifies both gains and losses, impacting the number of tokens minted or burned.

  • Deflationary Goal: Aiming for a deflationary token economy with more burns than mints over time.

  • Transaction Fees: Developer fees will reduce over time, while a 1.5% burn fee will be added to create further deflationary pressure.

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