The report highlights positive strategies like token burns and locked tokens, which suggest a focus on long-term stability and commitment. However, these alone do not meet good standards without more detailed information.
There is a severe lack of transparency regarding token allocation percentages among stakeholders, which is crucial for evaluating fairness and strategic soundness.
Critical details about the vesting schedule, such as whether it is linear or graded, presence of cliff periods, and performance-based unlocks, are completely missing.
No information is provided on measures to ensure team commitment or alignment with long-term goals, which are essential for assessing the alignment of incentives.
The absence of these details prevents a comprehensive evaluation of the fairness, transparency, and strategic alignment of the allocation and vesting mechanisms.
Given the significant gaps in information, the game's approach falls short of industry standards and cannot be considered transparent or strategically sound.
Introduction
Token allocation and vesting schedules are critical components of a Web3 game's economic structure, influencing its long-term sustainability, fairness, and alignment of incentives.
A well-designed allocation and vesting system can foster trust among stakeholders, prevent token dumping, and ensure the project's stability and growth.
This report will cover:
The evidence of token burn mechanisms and their implications for the game's economy.
[1a][1b]
The presence of locked tokens and their potential impact on token stability.
[1c][1d]
The limitations of the available information and the need for more detailed data to fully evaluate the allocation and vesting schedule.
Token Burn Mechanisms
Echo Of The Horizon has implemented a significant token burn mechanism, which plays a crucial role in its tokenomics strategy:
[1a][1b]This approach has several implications for the game's economy:
Reduces circulating supply: By burning a large portion of tokens, EOTH creates a deflationary pressure that could help stabilize or increase the token's value over time.
[1a][1b]
Demonstrates commitment to long-term sustainability: The burn mechanism signals that the team is focused on maintaining a healthy token economy rather than short-term gains.
Locked Tokens and Their Impact
Echo Of The Horizon has locked a portion of its tokens, which has several implications for the game's economy:
[1c][1d]This strategy aligns with long-term project goals in the following ways:
Prevents immediate sell-offs: Locking tokens ensures that a significant portion of the supply is not immediately available for sale, reducing downward pressure on the token's price.
Demonstrates team commitment: By locking tokens, the team shows a vested interest in the project's long-term success, fostering trust among stakeholders.
Limitations and Missing Information
While the evidence of token burns and locked tokens provides some insight into Echo Of The Horizon's economic strategy, critical details are missing:
The lack of detailed information prevents a comprehensive evaluation of the allocation and vesting schedule:
No transparency on token allocation percentages: It is unclear how tokens are distributed among team members, advisors, early investors, gamers, and others.
No details on vesting schedules: The sources do not specify whether vesting is linear or graded, whether there are cliff periods, or if performance-based unlocks are employed.
No information on measures to ensure team commitment or alignment with long-term goals: It is unclear how the team's token allocation aligns with the project's objectives or what measures are in place to prevent token dumping.
Conclusion
Echo Of The Horizon exhibits some positive economic strategies, such as token burns and locked tokens, which suggest a focus on long-term stability and commitment.
[1a][1b][1c][1d]However, the absence of detailed information on token allocation and vesting schedules limits the ability to fully assess the fairness, transparency, and strategic alignment of these mechanisms.
The token burn and locked token mechanisms indicate a commitment to long-term stability, but more transparency is needed to evaluate their full impact.
[1a][1b][1c][1d]
Detailed information on allocation percentages, vesting schedules, and measures to ensure team commitment would provide a more comprehensive understanding of the project's economic strategy.
