Deflationary Mechanism

On June 8, 2024, following a successful Snapshot vote, two deflationary mechanisms were introduced to the $CU token.

1. In-game Token Burn

Deflation is now linked to the usage of $CU in-game across all game loops within the first-party game. All $CU spent on the following operations are to be burned at a regular interval:

  • CU Token Marketplace “Direct Buys”

  • CU Token Marketplace Fees

  • Unicorn Breeding

  • Unicorn Evolution

  • Crafting

  • Shadowcorn Rituals

  • Codex Purchasing

  • Jousting Pass Entry Fees

  • LVM Purchases

  • Shadowcorn Egg Hatching

2. Buyback and Burn

Henceforth, 50% of the following ETH treasury inflows will be allocated to purchasing $CU from the open market for burning:

  • Primary Sales: Includes Land Vending Machine Purchases

  • Secondary Sales: Includes all fees paid to the creator for NFT purchases across all marketplaces. For our custom marketplace, this is set to 4%.

  • LP Fees: Includes the 0.5% earning per trade in the $CU/$wETH DEX pool.

  • Auxiliary Revenue: Includes additional revenue the DAO may earn as our ecosystem expands. This may include sources such as Unicorn Party and licensing revenue from merchandise and media deals.

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