Introduction

Token unlock schedules and supply management are critical components of Web3 games, directly impacting their economic sustainability and player engagement. My Pet Hooligan, powered by the KARRAT token, employs a structured approach to token unlocks and supply distribution, aiming to balance initial distribution, ongoing emissions, and long-term sustainability. [1a] This report will cover:

• The token unlock schedule and its alignment with the game's economic model. [2a]
• The supply management strategy and its implications for long-term sustainability. [3a]
• The role of community governance in shaping tokenomics and ensuring transparency. [4a]

Token Unlock Schedule

My Pet Hooligan’s token unlock schedule is designed to gradually release tokens over several years, with different lockup periods for various stakeholders:

• Team and advisor tokens are subject to a 4-year lockup, with the first unlock occurring 13 months after the token generation event (TGE), followed by monthly unlocks for the remaining three years. [1b]
• Early contributors have up to a 2.5-year lockup, with the first unlock at the 7-month mark post-TGE. [1c]
• Development tokens are locked for up to 4.5 years, with a 3% unlock at TGE and the remainder starting at the 7-month mark. [1d]
• The unlock schedule extends until October 2028, with significant token dilution expected as more tokens enter circulation. [2b]

Token Supply Management

My Pet Hooligan’s tokenomics are structured around a maximum supply of 1 billion $KARRAT tokens, with a focus on equitable distribution and long-term sustainability:

• At TGE, 116 million tokens are in circulation, with significant allocations to the KARRATco Treasury (30%), Development (15%), Team & Advisors (15%), and the Foundation Treasury (14%). [3a] [5a]
• The treasury and governance mechanisms ensure that 30% of the total supply is held in the KARRATco Treasury, which is governed by on-chain voting mechanisms to support ecosystem growth. [3c]
• The fully diluted valuation (FDV) stands at $749.99 million, indicating a high market potential, but investors should be cautious of future token unlocks affecting token value. [5b]

Alignment with Economic Model and Development Milestones

The tokenomics of My Pet Hooligan are closely tied to the game's economic model and development progress, ensuring that token distribution supports long-term growth:

• The token unlock schedule is aligned with the game's development milestones, with early unlocks for development and service providers to ensure ongoing progress. [1d]
• The game's play-to-earn mechanics are supported by the tokenomics, with $KARRAT tokens used for in-game purchases, staking, and rewards, driving player engagement. [6a]
• However, the risk of token dilution from future unlocks could impact the game's economic sustainability, requiring careful management to balance supply and demand. [2c]

Community Governance

My Pet Hooligan emphasizes community governance, with $KARRAT token holders having a direct say in the game's development and tokenomics:

• The KARRATco, a decentralized governance body, allows token holders to vote on proposals, including how the KARRATco Treasury funds are allocated. [4a]
• The governance process includes temperature checks, formal proposals, and on-chain voting, ensuring transparency and community involvement in decision-making. [7a]
• However, the concentration of tokens among a few holders (top 10 holders own 92% of tokens) raises concerns about the effectiveness of decentralized governance. [2d]

Competitive Positioning in the Web3 Gaming Ecosystem

My Pet Hooligan’s tokenomics are competitive within the Web3 gaming ecosystem, but certain aspects could be improved for long-term success:

• The structured token unlock schedule and long-term lockups for team and advisor tokens are aligned with best practices in the industry, ensuring commitment to the project. [1b]
• However, the high concentration of tokens among a few holders could hinder decentralization, which is a key selling point for Web3 games. [2d]
• The game's partnerships with industry leaders like Palantir and Nvidia enhance its credibility, but the tokenomics must evolve to compete with other successful Web3 games. [2f]

Conclusion

My Pet Hooligan’s token unlock schedule and supply management strategy demonstrate a structured and transparent approach, but there are areas for improvement to ensure long-term sustainability and competitiveness. The following points highlight the key aspects of the strategy:

• The token unlock schedule is well-planned, with long-term lockups for team and advisor tokens, ensuring alignment with the game's development milestones. [1b]
• Community governance is a strong point, with $KARRAT holders able to vote on proposals, though token concentration among a few holders raises concerns about decentralization. [4a] [2d]
• The tokenomics support the game's economic model, but the risk of token dilution from future unlocks requires careful management to maintain value. [2c]
• While My Pet Hooligan's tokenomics are competitive, further efforts are needed to balance token supply and demand, enhance decentralization, and maintain long-term sustainability.

References

[1] docs.karratcoin.com. The $KARRAT token. docs.karratcoin.com. 18 Oct 2024. Available from: https://docs.karratcoin.com/the-usdkarrat-token

[2] CryptoNews. Karrat Token Rallies but Dilution and Concentration Risks Remain. Binance. 22 Sep 2024. Available from: https://www.binance.com/en/square/post/13931307888594

[3] docs.karratcoin.com. The KARRAT Protocol. docs.karratcoin.com. date unknown. Available from: https://docs.karratcoin.com/the-karrat-protocol

[4] docs.karratcoin.com. Quick Summary. docs.karratcoin.com. date unknown. Available from: https://docs.karratcoin.com/quick-summary

[5] CryptoRank. Karrat Funding Insights. CryptoRank. date unknown. Available from: https://cryptorank.io/ico/karrat

[6] docs.karratcoin.com. Case Study: My Pet Hooligan & AMGI Studios. docs.karratcoin.com. date unknown. Available from: https://docs.karratcoin.com/case-study-my-pet-hooligan-and-amgi-studios

[7] docs.karratcoin.com. Constitution of the KARRATco. docs.karratcoin.com. 28 Aug 2024. Available from: https://docs.karratcoin.com/constitution-of-the-karratco