Tokenomics
Last updated
Last updated
Versagames is a DAO platform with a highly profitable and scalable revenue model. The DAO will utilize its treasury assets for LaaS and Direct Investments into NFT games. The $VERSA token represents ownership of the DAO. Therefore the $VERSA token performance should mirror the value of the DAO treasury.
To maintain this link between the token and the DAO treasury, VersaGames will implement two primary mechanisms.
The first link will be via staking. $VERSA holders will be able to stake their tokens, and receive the treasury distribution yield.
The second link will be via treasury issuance and buybacks on tokens. If the token price falls too far below treasury value, VersaGames will use the opportunity to buy back tokens. If the token price goes too far above treasury value, VersaGames will fundraise by selling discounted tokens to $VERSA stakers.
On IDO date, $VERSA tokens will be allocated between different uses with stringent vesting conditions.
$VERSA tokens will be used in line with the guidance provided below, and will be subject to the vesting periods described:
As a guide
Liquidity Pool: $VERSA tokens to use for Protocol owned Liquidity
LaaS: Treasury reserve of $VERSA to lend to partner game LP on DEX. This is a revolving supply which will be lent and withdrawn in accordance with partnership agreements.
Cronos DevFund: Earmarked to invest into Cronos projects that are in line with VersaGames vision
Pool for future fund raising: To scale the VersaGames Plattform, M&A and strategic partnerships with platforms or protocols to expand the DAO offering and ecosystem
Marketing Fund: For building community engagement and sponsoring promotions.
Dev/Ops Fund: Maintenance of the protocol, and investment into platform expansion.
With time, we project increasing public ownership of the DAO, with outstanding token ownership evolving along these guidelines:
The chart above shows the treasury holdings of $VERSA decreasing as more tokens are distributed to the public. However, the value of treasury assets is expected to increase dramatically as the business model generates revenue in the form of stablecoins and game partner tokens. As a guide, the treasury asset composition can be expected to evolve as follows:
For treasury asset value, we can project the LaaS contribution to the DAO treasury (the majority revenue driver) as follows:
To link $VERSA performance to treasury growth, VersaGames will have a staking mechanism. The flow charts below are designed to illustrate how value will flow from the platform activity to the treasury and then to $VERSA holders.
The treasury will also distribute profits generated via direct game project investments through the staking channel. Upon sale of investment, the treasury will raise the staking yield, allowing xVERSA holders to participate in the treasury asset growth.
To link $VERSA performance to treasury value, VersaGames will use treasury assets to buyback $VERSA. If the $VERSA implied DAO valuation falls meaningfully below the net asset value of the treasury, suggesting the token is trading at a substantial discount, the DAO will initiate a buyback process.
Both stablecoins and game tokens held by the treasury can be used to increase the $VERSA treasury composition. Buybacks will be conducted through DEX pools, and will result in both a higher $VERSA price, as well as more $VERSA treasury holdings.
The acquired $VERSA tokens may, over time, be distributed to xVERSA stakers and may be used to raise further funds for the DAO
VersaGames will very selectively raise additional funds. To justify further token sales the DAO will assess $VERSA price relative to treasury value, existing commitments to partners, and market opportunities at the time. If the required conditions are satisfied, VersaGames will explore the best path forward for additional funds. Some examples of avenues for fundraising might be:
$VERSA tokens could be sold through a discounted $VERSA sale, with whitelisting priority given to xVERSA stakers.
$VERSA tokens could be sold to strategic partners with a vesting schedule to align long-term interests
