Introduction

Tokenomics plays a pivotal role in the success of any Web3 game, influencing player engagement, economic stability, and long-term sustainability. Spider Tanks, developed by GAMEDIA B.V., utilizes SILK as its native token, with a unique approach to token unlocks and supply management designed to balance player rewards with economic stability. [1a] This report will cover:

• The mechanisms governing SILK distribution, including the Replacement and Non-Replacement Allowances. [1b]
• The game’s supply management strategy, including the soft cap and burning mechanisms. [1c]
• The transparency and adaptability of the token unlock schedule and supply management. [1d]
• The alignment of the tokenomics with the game’s economic model and its competitive positioning within the Web3 gaming ecosystem. [1e]

SILK Distribution Mechanisms

SILK distribution in Spider Tanks is governed by two primary mechanisms: the Replacement Allowance and the Non-Replacement Allowance, both of which are intricately tied to player activity and the game’s economic dynamics. [1f] The Replacement Allowance is directly linked to the amount of SILK burned by players through in-game spending, while the Non-Replacement Allowance is influenced by the circulating supply and the soft cap. [1g] These mechanisms ensure that SILK issuance is both responsive to short-term demand and sustainable in the long term:

• The Replacement Allowance is determined by the previous day’s SILK burn, incentivizing players to spend SILK to maintain a healthy ecosystem. [1b]
• The Non-Replacement Allowance decreases as the circulating supply approaches the soft cap, ensuring that SILK becomes scarcer over time. [1i]
• Players earn SILK through Victory Points, which are awarded based on their performance in matches and the rarity of their NFTs. [1j]

Supply Management Strategy

Spider Tanks employs a sophisticated supply management strategy designed to control inflation and ensure the long-term value of SILK. [1k] The game implements a soft cap of 100 million SILK, which acts as an upper limit on the circulating supply, and a burning mechanism that removes SILK from circulation when it is spent in-game. [1i] Additionally, the dynamic supply mechanism allows Gala Games and GAMEDIA to adjust key parameters, such as the Victory Point-to-SILK ratio and component prices, to maintain economic balance: [1d]

• The soft cap ensures that SILK becomes scarcer over time, incentivizing players to spend and burn tokens to maintain the ecosystem’s health. [1i]
• Spent SILK is sent to a burn wallet, reducing the circulating supply and counteracting inflationary pressures. [1o]
• The dynamic supply mechanism provides flexibility to adjust the economy based on real-time data, ensuring long-term sustainability. [1p]

Transparency and Adaptability

Spider Tanks demonstrates a commitment to transparency and adaptability in its tokenomics, with regular adjustments based on community feedback and economic data. [2a] The game’s dynamic supply mechanism allows the developers to adjust key economic parameters, such as the Victory Point-to-SILK ratio and component prices, to maintain a balanced economy. [1d] Additionally, the team has made several adjustments to the economy based on collected data, ensuring a fair and rewarding experience for players: [2b]

• The Victory Point-to-SILK ratio and component prices can be adjusted to reflect changes in the rate of SILK issuance, ensuring economic stability. [1p]
• Earnings adjustments have been made to balance rewards across different rarity tiers, with common tanks receiving significant increases while higher rarity tanks see reductions. [2c]
• The team has introduced features like Supercharge to boost Victory Points for players’ first win of the day, reflecting a willingness to adapt based on player behavior. [2d]

Alignment with Economic Model and Competitive Positioning

Spider Tanks’ tokenomics are intricately designed to support its play-to-earn mechanics, ensuring that player rewards are both meaningful and sustainable. [1a] The game’s supply management strategy, including the soft cap and burning mechanisms, ensures that SILK retains its value over time, supporting long-term play-to-earn incentives. [1i] Spider Tanks’ competitive positioning within the Web3 gaming space is strengthened by its unique economic features:

• The dynamic supply mechanism allows for real-time adjustments to the economy, ensuring that it remains competitive and responsive to player needs. [1d]
• The game’s focus on player-driven economies and transparency in token distribution sets it apart from many other Web3 games. [1v]
• Future updates, such as the introduction of consumables, cosmetics, and a land and factories system, promise to further enrich the game’s economic complexity. [1w]

Conclusion

Spider Tanks demonstrates a well-planned, transparent, and adaptable approach to token unlocks and supply management, effectively balancing player rewards with long-term economic sustainability. The game’s use of a soft cap, burning mechanisms, and dynamic supply adjustments ensures that SILK remains a valuable and scarce resource, supporting its play-to-earn model. [1i] Key strengths of Spider Tanks’ tokenomics include:

• A responsive token distribution system with Replacement and Non-Replacement Allowances that adapt to player activity. [1b]
• A supply management strategy that includes a soft cap and burning mechanisms to control inflation and preserve token value. [1i]
• A dynamic supply mechanism that allows for adjustments based on real-time economic data, ensuring long-term sustainability. [1d]

References

[1] Spidet Tank. Spidet Tank Economy Litepaper. Spidet Tank. 27 Mar 2023. Available from: https://www.spidertanks.game/docs/Spider_Tanks_Lite_Paper.pdf

[2] Spider Tanks. Get Ready for some Major Economy Upgrades. Medium. 27 Jan 2023. Available from: https://blog.gala.games/get-ready-for-some-major-economy-upgrades-1630f4221f8