XOCIETY's token allocation shows a community-driven approach by rewarding NFT holders with 75,000 XCS, which aligns well with Web3 principles and fosters long-term engagement. This demonstrates fairness and transparency in at least one key stakeholder group.
However, there is a significant lack of transparency regarding team and investor allocations and vesting schedules. This raises concerns about whether these allocations are fair and strategically aligned with the project's long-term goals.
The absence of information on vesting schedules, including whether they are linear, graded, or include cliff periods, prevents a comprehensive assessment of how well incentives are aligned for the team and investors.
There is no mention of performance-based unlocks or measures to ensure long-term commitment from the team, which are critical for maintaining project stability and preventing token dumping.
The lack of communication about key details, such as total token supply and percentage allocations, further limits transparency and makes it difficult to compare XOCIETY's strategy to industry standards.
Introduction
Token allocation and vesting schedules are critical components of Web3 gaming economies, ensuring fairness, transparency, and alignment of incentives among stakeholders.
XOCIETY, a Web3 game developed by NDUS Interactive on the Sui blockchain, has implemented a token allocation system that rewards NFT holders with XOCIETY Corporate Shares (XCS).
[1a]This report will cover:
The allocation of XCS to NFT holders and its implications for community-driven incentives.
[1b]
The lack of transparency regarding team and investor token allocations and vesting schedules.
The need for further information to assess the fairness and strategic alignment of the token allocation system.
Community-Driven Token Allocation
XOCIETY has allocated 75,000 XCS (XOCIETY Corporate Shares) to NFT holders, specifically Frontier Avatar holders and CORP Whitelist members.
[1a]The allocation is based on NFT rarity, with higher rarities receiving more Draw Tickets for the XCS Lucky Draw, ensuring that early and active participants are rewarded.
[1d]This approach fosters community engagement and aligns incentives with long-term project success:
Frontier Avatar holders are incentivized to remain active in the ecosystem, as their contributions directly influence their rewards.
[2a]
By rewarding NFT holders, XOCIETY emphasizes a decentralized and participatory approach, which is a core principle of Web3 gaming.
[1e]
Unclear Team and Investor Allocations
The sources do not provide details on the percentage of tokens allocated to the team, advisors, or early investors, making it difficult to assess the fairness of the distribution.
Without this information, it is impossible to determine whether the majority of tokens are held by a small group, which could pose risks to decentralization and economic stability.
Additionally, there is no mention of vesting schedules, leaving key questions unanswered, such as:
Whether vesting is linear, graded, or includes a cliff period, which are critical for ensuring long-term commitment from stakeholders.
How the team’s vesting schedule compares to industry standards or other Web3 gaming projects.
Whether performance-based unlocks or other measures are in place to align team incentives with project success.
Gaps in Information
The absence of key details, such as the total token supply and the percentage allocations to different stakeholders, limits a comprehensive assessment of XOCIETY’s token allocation system.
Future research should focus on obtaining the following information to provide a more accurate evaluation:
The total token supply and the percentage allocated to the team, advisors, and investors.
The specifics of vesting schedules, including whether they are linear, graded, or include cliff periods.
Measures to ensure team commitment, such as performance-based unlocks or updates on vesting schedules.
Conclusion
XOCIETY’s token allocation strategy demonstrates a partially fair and transparent approach by rewarding NFT holders, but significant gaps in information limit a comprehensive assessment.
The allocation of 75,000 XCS to NFT holders fosters community engagement and aligns incentives with long-term project success, but the lack of transparency regarding team and investor allocations and vesting schedules raises concerns.
[1a]Key findings include:
The focus on NFT holders suggests a community-driven approach, which aligns with Web3 principles.
[1b]
The absence of information on team and investor allocations and vesting schedules limits the ability to assess fairness and strategic alignment.
Further details on total token supply, percentage allocations, and vesting schedules are needed for a more comprehensive evaluation.
