Introduction

Tokenomics and supply management are critical components of any Web3 game, influencing player incentives, long-term sustainability, and overall economic stability. Echo Of The Horizon (EOTH) employs a tokenomics model that includes a maximum supply, a burn mechanism, and a locked token system, which are designed to balance initial distribution, ongoing emissions, and long-term sustainability. This report will cover:

• The status of EOTH's token supply, including maximum, total, and circulating supply. [1a]
• The burn mechanism and its implications for token scarcity and long-term value. [1b]
• The role of locked tokens in managing token supply and preventing market flooding. [1c]

Token Supply Model and Scarcity

Echo Of The Horizon has a clearly defined token supply model, with a maximum supply of 200 million EOTH tokens and a significant portion of these tokens already burned or locked. [1d] [1e] The burn mechanism is a key feature of EOTH's tokenomics, with 99,504,627 tokens already burned, reducing the total supply to 100,495,373 tokens and contributing to long-term scarcity and value. [1e] This approach to token supply management ensures a controlled emission rate and supports the game's long-term sustainability by preventing excessive inflation:

• The maximum supply is capped at 200 million EOTH tokens, with 99.5 million burned, leaving a total supply of 100.5 million tokens. [1g] [1e]
• The burn mechanism helps maintain token scarcity, with 19 million team tokens already burned and a scheduled monthly burn of 1.6 million tokens. [1i]
• The circulating supply stands at 66.2 million tokens, with an additional 34.3 million tokens locked, further reducing immediate market availability. [1j] [1c]

Burn Mechanism and Inflation Control

Echo Of The Horizon's burn mechanism is a strategic tool for controlling inflation and enhancing token value by reducing the overall supply of EOTH tokens. The team has implemented a scheduled monthly burn of 1.6 million tokens, with a total of 19 million team tokens already burned, demonstrating a commitment to long-term token scarcity. [1i] This approach not only reduces the circulating supply but also aligns with the game's economic model by encouraging player participation and long-term engagement:

• The burn mechanism ensures a deflationary pressure on the token supply, with a total of 99.5 million tokens already burned and an ongoing monthly burn in place. [1e]
• The monthly burn of 1.6 million tokens is a systematic approach to reducing supply, with a total of 4 million tokens planned for burning. [1n]
• This strategy helps prevent market flooding and supports the token's long-term value proposition by ensuring controlled emissions.

Locked Tokens and Supply Management

Echo Of The Horizon has a significant portion of its tokens locked, totaling 34.3 million EOTH tokens, which are excluded from the circulating supply. [1c] This locked token system serves as a buffer against market flooding, ensuring that the token supply is gradually released into circulation rather than being immediately available. By controlling the rate at which tokens enter the market, EOTH aims to maintain a stable and sustainable token economy, aligning with its broader economic model:

• The locked tokens account for a significant portion of the total supply, with 34.3 million tokens currently unavailable for circulation. [1c]
• This approach helps prevent sudden market saturation, allowing for a controlled release of tokens into the ecosystem.
• The locked token system, combined with the burn mechanism, ensures a balanced token supply that supports the game's long-term economic stability.

Conclusion

Echo Of The Horizon's token unlock schedule and supply management strategy demonstrate a structured approach to balancing initial distribution, ongoing emissions, and long-term sustainability. The implementation of a burn mechanism and a locked token system effectively reduces market flooding and supports the game's economic model by ensuring controlled token emissions. However, the lack of information on specific unlock dates, governance mechanisms, and dynamic adjustments based on player activity limits the ability to fully assess the adaptability and transparency of the strategy:

• The burn mechanism and locked token system are effective tools for controlling inflation and maintaining token value.
• The circulating supply is carefully managed, with 66.2 million tokens in circulation and 34.3 million tokens locked, preventing sudden market flooding. [1j] [1c]
• Future research should focus on obtaining details about specific unlock schedules, governance mechanisms, and how the tokenomics align with development milestones for a more comprehensive analysis.

References

[1] eoth.gitbook.io. 📊Tokenomics. eoth.gitbook.io. 4 Jul 2024. Available from: https://eoth.gitbook.io/eoth/tokenomics