Token Economy

Token Utility and use-cases

$COPI is the core utility token of the Cornucopias ecosystem. The token will be structured with a max supply. The COPI Token facilitates the purchase of goods and services on the platform, grants access to governance through single-token staking, unlocks in-game rewards, and provides incentives for liquidity providers, node operators, and token stakers. Furthermore, the Cornucopias platform, where users can trade NFTs (including those created by the game), accepts $COPI as the exclusive currency for game assets and game related items. Payments can be made directly by the user or through a third-party app like MoonPay to accommodate fiat users.

One of the many features offered by $COPI is its staking mechanism, enabling token stakeholders to participate in governance based on their commitment (token allocation). But that's not all; staking $COPI introduces stakeholders to various utilities and rewards. Let's dive into it.

$COPI Utility

$COPI is the utility token that powers the gaming ecosystem of Cornucopias. Listed below are some of the utilities. It should be noted that as our game and ecosystem evolve, so will our token utility.

  1. Official Marketplace Currency: Priced in USD, Bought with $COPI

    • $COPI will serve as the exclusive currency within the game marketplace specifically for acquiring game assets and game-related items:

      • Outfits

      • Tools

      • Weapons

      • Vehicles

      • Properties

      • Tournament passes

      • Other exclusive game items

    • Sales for items such as node licenses or advertisement space may be available for purchase in currencies other than $COPI

  2. Governance

    • Various feedback proposals will be shared with the community on topics such as rewards, gameplay, features, development, events, and much more.

    • Voting is exclusively for $COPI stakers (directly or via LP token), where each token represents one vote. These contributions are crucial for steering the project's direction and fulfilling the long-term vision at Cornucopias.

  3. Rewards

    • Achievement based rewards for players in-game

    • Node operators

    • Staking

  4. Advertise in the Cornucopias Game Ad Network

    • This is a B2B subscription service that allows businesses, guilds, and in-game brands to leverage our network for advertising exposure.

    • Ads can be acquired on a seasonal basis, and we offer a preferential discount for payments made in $COPI, enhancing value for our partners who choose to use this currency.

$COPI staking

Staking is a popular distribution mechanism that allows holders to yield $COPI. All incentives will be influenced through governance, with the Annual Percentage Yield (APY) achieved through interest on the stake paid out in $COPI distributed from the dedicated reward pool.

The platform will provide three staking methods:

  1. Staking for NFTs entails locking up a designated amount of $COPI tokens for a specific period to earn exclusive NFTs. These NFTs are non-tradable (Soulbound Tokens - SBTs) on the Marketplace and can solely be acquired through staking. The exact staking criteria, such as the quantity and duration, will be customized for each event and decided on a case-by-case basis.

  2. Players have the option to Stake for $COPI and yield $COPI depending on the amount staked. Earnings are distributed from the Rewards pool.

  3. Stake for discounts when purchasing items available for sale on the Marketplace. Staking the $COPI token for a set period (e.g., 1 month) is necessary, and unstaking is not permitted during this time. The discount percentage is based on the amount of $COPI tokens staked, as shown in the example below:

LevelMinimum tokens to stakeDiscount at purchase

1

19,200+

5%

2

96,000+

10%

3

384,000+

15%

4

1,152,000+

20%

*Above discounts are for illustrative purposes only, and are subject to change

Buy Back and Liquidity Provision (BB & LP)

The Buyback and LP strategy merges the key advantages of both buyback and burn methods with the enhanced value of increased liquidity through buyback and liquidity provision. Rather than burning tokens, they are initially used to provide liquidity for the token on its primary pool ($COPI/USDC). This approach combines the benefits of reducing the token supply with enhancing liquidity for the token.

Here is how this works in practice (example):

  1. User A joins the platform, where players buy a license to operate a public Cornucopias node for $300.

  2. 10% of the license fee ($30) is allocated for buyback and liquidity provision (BB & LP), while the remaining $270 goes towards funding the platform's operations.

  3. Out of the $30, $15 is used to purchase $COPI at market price. The remaining $15 is used to acquire $USDC as the second token in the LP pair.

  4. The tokens bought back and 15 $USDC are then added back as liquidity in the pool, increasing the availability of $COPI tokens for buyers and USDC for sellers.

  5. As liquidity is provided, the $COPI-USDC LP tokens generated are included in the treasury.

Up to 10% of nodes fees will be allocated to funds for buyback and liquidity pool, following the mechanic mentioned above

Governance

Cornucopias aims at becoming more and more decentralized over time, but for the time being, it wants to give its users the possibility to participate in the direction of the platform in certain aspects. Token stakers will have the option to vote on several topics, to be updated in the near future.

All votes cast are suggestive and non-binding for the project (e.g., the project might choose to disregard them completely if they do not fit into the long-term strategy of the project).

Voting eligibility

Voting will be open to users that stake $COPI or LP Tokens and voting will be based on the number of tokens that the person has staked, 1 token = 1 vote (applies to your share of the liquidity pool in terms of $COPI staked). Eligible tokens for voting include:

  • Staked tokens

  • Staked LP tokens (representative share of $COPI in pool)

Tokens which are not included in the voting process are:

  • Tokens from not yet claimed rewards

  • Tokens which are vesting

  • Tokens which are not staked

The voting will be done via the snapshot tool - https://snapshot.org/#/ (or similar tool)

Voting process

A project representative creates a forum poll (on both the internal forum and snapshot) describing the subject being voted on. Each poll can be a:

  • Yes/No poll

  • Multiple choice poll

The poll includes:

  • Snapshot date - the date and time when the tokens were counted for the purpose of voting. The users do not vote with their current token balance, instead they vote with the token balance as of the time of the snapshot (this is done in order to avoid situations where a user acquires a huge number of tokens only for a particular vote).

  • A link to a discussion thread where the topic can be discussed.

  • Description of the voting options and the rationale behind them.

  • The end date and time for voting.

The vote ends either when:

  • The end date for voting comes OR

  • The project representative decides to end the voting process early (for example, because during the discussion process new and better alternatives were uncovered)

After the vote has ended, the vote results are tallied on the internal forum. Those results are non-binding.

Ecosystem Flowchart

Link to Image

Last updated