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Tokenomics
The BeNFT ecosystem is built on a dual token model with $BEAI as the native/value token and xBEAI as the utility/ in-metaverse token.
We at BeNFT believe an optimal token model should incentivize liquidity and promote decentralization. In addition, it should provide more equitable governance and sustainable economics. We propose a token model that will help BeNFT achieve these goals and, in addition, help bolster treasury reserves and maintain a predictable token supply to ensure continual operation and development.
The upcoming TGE (Token Generation Event) for BeNFT Solutions is an opportunity for investors to purchase $BeAI tokens and participate in the growth of the BeNFT ecosystem. During the TGE, a set number of $BeAI tokens will be traded with USDT pair and will have a listing price of 0.5 USDT, and investors will have the chance to purchase them using various cryptocurrencies. Once the TGE is complete, the $BeAI tokens will be tradable on cryptocurrency exchanges, allowing investors to buy and sell them as they see fit.
Seed Rounds are a critical component in providing early-stage funding to support the development and launch. In order to fund the initial development and launch of the BeNFT Solutions, the team has allocated 1% of the total token supply towards a Seed Round allocation.
The distribution of these tokens follows a TGE+10 Days 33% unlock, followed by monthly unlocks over a period of 2 months. This approach provides the BeNFT team with an initial allocation of tokens to support work on the project, while also providing a steady stream of tokens over an extended period of time.
The initial 33% unlock 10 days after the TGE is designed to provide the team with a substantial initial allocation of tokens that they can use to support the early development and launch of the project. This allocation can be particularly valuable in the early stages of the project, providing the team with the resources they need to build out the initial infrastructure and begin attracting users and investors to the platform.
The subsequent monthly unlock over a period of 2 months provide a consistent supply of tokens, which can be used to fund ongoing development and launch initiatives.
18% of the total token supply of $BeAI was committed to a Private Round allocation.
The distribution of these tokens will follow a 50% unlock at TGE, followed by monthly unlocks over a period of 3 months. This approach provides early investors with a substantial initial allocation of tokens, while also providing the team with a steady stream of tokens over an extended period of time.
The initial 50% unlock at TGE is designed to reward early investors for their commitment to the project, and to provide them with a substantial allocation of tokens that they can use to support their ongoing investment in the project. This approach can be particularly attractive to early investors, who may be seeking to capitalize on the potential upside of a promising blockchain project.
The subsequent monthly unlock over a period of 3 months provide the team with a consistent supply of tokens.
Liquidity allocation is a crucial aspect of any token launch, and the BeNFT team has implemented a well-structured mechanism to ensure liquidity for the $BeAI token. This mechanism is designed to provide ample liquidity for the token, ensuring that users and traders can easily buy and sell the token on various exchanges.
At the Token Generation Event (TGE), 20% of the total supply is allocated for liquidity, of which 45% of the allocation will be unlocked for liquidity. This allocation ensures that the $BeAI token is readily available for trading on centralized exchanges (CEXs) and decentralized exchanges (DEX), allowing users to buy and sell the token with ease.
Following the TGE, the remaining tokens will be unlocked as required. This mechanism ensures that there is always sufficient liquidity for the token, and the team can provide additional tokens to exchanges as required.
Overall, the liquidity allocation mechanism implemented ensures that the $BeAI token has sufficient liquidity to support trading and user adoption. By providing ample liquidity, we create a vibrant and active marketplace for the $BeAI token, facilitating its growth and success as a key utility token within the BeNFT ecosystem.
To attract and retain top talent, the BeAI team has allocated 7.5% of the total token supply towards a Team and Advisors allocation.
The distribution of these tokens will follow a 12-month cliff, followed by quarterly unlocks over a period of 5 years. This approach provides a long-term incentive for team members and advisors to remain committed to the project over an extended period of time.
The initial 12-month cliff is designed to prevent the immediate dumping of tokens on the market by team members or advisors. This requirement incentivizes team members and advisors to remain committed to the project over the longer term, rather than seeking to cash out their tokens immediately.
The subsequent quarterly unlocks over a period of 5 years provide team members and advisors with a consistent supply of tokens, which can be used to support their ongoing work on the project. These tokens may be used to reward team members and advisors for their contributions or to incentivize them to achieve key milestones or objectives.
Marketing and growth are key aspects of any successful blockchain project, and the BeAI token is no exception. In order to facilitate the growth and development of the BeAI ecosystem, the team has allocated 10% of the total token supply towards marketing and growth initiatives.
The distribution of these tokens will follow a TGE+1-month cliff, followed by monthly unlocks over a period of 17 months. This approach ensures that the BeAI team has access to a steady stream of tokens over an extended period of time, allowing them to execute marketing and growth initiatives in a sustainable manner.
The initial one-month cliff is a common practice in the cryptocurrency industry and is designed to prevent the immediate dumping of tokens on the market by early investors. By requiring a waiting period before tokens can be unlocked, investors are incentivized to hold onto their tokens for a longer period of time, which can help to stabilize the price of the token in the short term.
The subsequent monthly unlock over a period of 17 months provide the BeAI team with a consistent supply of tokens, which can be used to fund a variety of marketing and growth initiatives.
Ecosystem Rewards are another important mechanism implemented by BeNFT Solutions to incentivize participation and reward contributors to the BeNFT ecosystem. This mechanism is designed to distribute a portion of the $BeAI token supply to ecosystem participants, including users, developers, and other stakeholders. 32% of the total token supply is allocated towards the Ecosystem Rewards.
The Ecosystem Rewards mechanism is activated 6 months after the TGE, at the Minimum Viable Product (MVP) stage, where 5% of the total $BeAI token supply is unlocked. Following this initial unlock, linear unlocks are carried out for a period of 36 months.
The Ecosystem Rewards mechanism is an essential feature of the BeNFT ecosystem, as it incentivizes participation and encourages stakeholders to contribute to the growth and development of the platform. By distributing tokens to ecosystem participants, BeNFT can create a more decentralized and democratic ecosystem, where all stakeholders have a stake in the success of the platform.
The tokens distributed through the Ecosystem Rewards mechanism can be used for a variety of purposes, such as staking, trading, or voting on platform proposals. This creates a more active and engaged community, where participants are encouraged to contribute to the ecosystem's growth and success.
The Ecosystem Rewards mechanism is a crucial aspect of the BeNFT ecosystem, as it incentivizes participation, encourages stakeholder engagement, and creates a more democratic and decentralized platform. By distributing tokens to ecosystem participants, the BeNFT can create a more vibrant and successful ecosystem, where all stakeholders benefit from the platform's growth and success.
"Protect and Burn" is a mechanism implemented by the BeNFT DAO (Decentralized Autonomous Organization) to protect the value of the $BeAI token and ensure its stability. The tokens are vested for 6 months after the TGE (Token Generation Event) and unlocked if required. The percentage allocation of BeAI tokens to Protect and Burn is 2.5%.
The Protect and Burn mechanism is an essential feature of the $BeAI token's design, as it allows the BeNFT community to take control of the token's supply and ensure that it remains stable over time. By releasing or burning tokens, the community can regulate the token's supply to meet market demand, thereby preventing the token from becoming overvalued or undervalued.
The DAO will determine whether or not to release or burn tokens based on various factors, such as market demand, supply and demand dynamics, and overall ecosystem health. If there is a high demand for the token, the DAO may release some of the tokens to meet that demand, thereby preventing the token's price from skyrocketing. Conversely, if there is a low demand for the token, the DAO may choose to burn some of the tokens to reduce supply and support the token's price.
The half-yearly release or burn of tokens is carried out in a transparent and fair manner, with the DAO taking into account the input and feedback of the BeNFT community. This ensures that the community has a say in how the Protect and Burn mechanism is implemented, creating a more decentralized and democratic system.
Overall, the Protect and Burn mechanism is a crucial aspect of the $BeAI token's design, as it allows the BeNFT community to take control of the token's supply and ensure its stability over time. By releasing or burning tokens based on market demand, the community can regulate the token's supply to meet market demand, creating a more stable and valuable token for all stakeholders.
The swap and burn mechanic is an essential feature of the XBeAI token.BeAI as the native token and xBeAI as the secondary/ utility tokens constitute dual-token economics on the other hand fixes the weakness of the single-token economy. Separating the single token into a native token and a utility token helps to reduce the impact of the secondary market on the overall ecosystem and the price fluctuation of the native token would not affect the economic mechanism of the utility token.
- BEAI can be swapped to xBEAI if a user wishes to use learn or earn AI engine
- For example, if USER A swaps 1000 $BEAI tokens to xBEAI (when $BEAI is trading @0.5 USDT) then USER A will get 500 xBEAI. xBEAI swapping will trigger automatically via smart contract.
- The xBEAI swapping will be limited and controlled by the demand of USDT for the Learn AI engine.
- The xBEAI burn will occur if a user wishes to swap xBEAI back to BEAI tokens
- For example, If USER A swaps 500 xBEAI back to BEAI tokens (when $BEAI is trading at 0.5 USDT) then USER A will get 1000 $BEAI, but if USER A swaps 500 xBEAI (when $BEAI is trading at 5 USDT) then USER A will get 100 $BEAI.
- Once the USER A gets $BEAI tokens then xBEAI will be burnt and will be out of circulation.
This overall swap and burn mechanics creates a positive feedback loop and prevents excess xBEAI to be in circulation and also unaffected by the volatility of the native BEAI tokens.
Capital Reserve is an important component of any blockchain project, providing a dedicated pool of funds that can be used to support ongoing growth and expansion initiatives. In order to fund these initiatives for the BeNFT project, the team has allocated 9% of the total token supply towards a Capital Reserve allocation.
The distribution of these tokens will follow a TGE+1 month cliff, followed by linear unlocks over a period of 20 months. This approach provides the team with an initial allocation of tokens that can be used to fund the early growth and expansion of the project, while also providing a steady stream of tokens over an extended period of time.
The initial 1-month cliff is designed to ensure that the BeNFTI team has a dedicated pool of funds available to support early expansion initiatives.
The BeNFT governance token will give holders the ability to vote on various aspects of the BeNFT ecosystem, such as protocol upgrades, fee structures, and ecosystem development. This will enable the community to have a say in how the platform evolves over time, creating a more decentralized and democratic system.
The BeNFT Solutions tokenomics are designed to provide stability, utility, and community participation. The $BeAI token serves a specific purpose within the BeNFT ecosystem, and the mint and burn mechanic ensures its stability. The upcoming BeNFT governance token will give the community a voice in the platform's development, creating a more decentralized and democratic system. Finally, the TGE provides an opportunity for investors to participate in the growth of the BeNFT ecosystem, while the tradability of $BeAI tokens on cryptocurrency exchanges will provide liquidity to the token.
**The Tokenomics section and commitment are currently under review. Updated tokenomics will be published in due time and announcements for the same will be made to the BeNFT community and stakeholders.