PIONEERING THE PATH TO A GREAT COMMUNITY:TOKENOMICS

Nakama Labs recently published a great introduction article on tokenomics (you can read it here) and seeing as it introduces a lot of the values that we hold dear at the RRCC, we thought we would break down (using the Nakama intro as a blueprint) how we use community driven tokenomics to build a sustainable future for the project and the $RUST utility token.

Key Concepts

Issuance — the entire supply of $RUST has already been issued and the contract ownership is revoked. Meaning, we can’t increase the supply, mint new tokens, or mess with the system. The entire max supply has been minted and is either locked in smart contracts or in circulation for 100% transparency. $RUST is entirely transparent and visible on-chain.

Burning — Every dApp, product, or service the RRCC releases makes use of $RUST token in one way shape or form. And, with every $RUST interaction is a burn mechanic, meaning every time $RUST is used within the RRCC ecosystem, $RUST is also burned, decreasing the supply over time — decreasing supply introduces scarcity.

Distribution — The $RUST distribution was all about community. 78% of the $RUST token supply goes right into the hands of the community in the form of airdrops, staking rewards, community fund, and other community incentives. 13% of the supply is split between the project fund and ecosystem development fund to support creative projects within the RRCC ecosystem, 5% of the supply to partners and early adopters, with only 4% of the supply going to team members and project contributors.

Supply Metrics

Max Supply — the max total supply of $RUST was capped at 2,000,000,000 $RUST tokens, which were minted on launch. With burn mechanisms in place, this has already dropped to 1,989,538,024 $RUST — and will only get lower.

Circulating Supply — with a 24-month release period to max supply, the current circulating supply is less than 25% of tokens, at only 419,449,243 $RUST.

Market Cap — these change pretty fast depending upon token price and circulating supply and burns, but at time of print, Fully Diluted MCap is $1,533,594, with current circulating supply MCap at $323,323

Powering Incentives

With the community at the centre of the $RUST economy we have powerful incentives in place to reward holders and users of the token. We have 3 staking pools on MagicSea DEX that allow NFT holders and non-NFT holders to receive rewards for staking $RUST, along with farming rewards for Liquidity Providers who provide Liquidity for supported $RUST Liquidity Pools. There are also regular community airdrops that go out monthly to all NFT holders, creating a continued incentive to support the project as it grows.

Governance

The RRCC DAO will emerge over the coming months which will allow NFT holders and Token holders to vote on community governance through on-chain voting for community and ecosystem proposals as the project expands. With the project being a minor token holder, voting will be driven by the community.

The Rules We Used for Great Tokenomics

Clear Utility and Purpose

Since day one we have been crystal clear about the utility of the $RUST token. The token can be used across the various dApps the RRCC offers, such as bulk burn, bulk transfer, raffles, mini0games, royalty rights purchases, music, and comic experience access, etc. It is the entry point to the ecosystem and as demand for tooling and real-world use increases, so will the value of the $RUST economy.

Balanced Distribution

Ensuring the team only holds 4% of the supply was of critical importance for the RRCC. We want the distribution to be in complete control of the community. Community comes first and the community should determine the future of the token. Equally as important was ensuring a steady circulation vesting period over two years to ensure the market growth is in line with the circulating supply.

Economic Incentives

We balanced the liquidity, airdrops, and staking opportunities to support the community with a continued reason to build and grow with the RRCC ecosystem. Steady release of tokens to NFT holders, strong liquidity incentives, and two-year staking opportunities provide constant rewards to active community participants.

Dynamic Supply Management

We BURN BURN BURN! With burn mechanics in place across every RRCC dApp feature there is a steady and consistent burn of tokens to counter the dynamic release of new tokens that enter circulation through the many vesting, staking, and reward mechanics that are in place.

Transparent Governance Mechanisms

When on-chain voting arrives with the RRCC DAO, voting will be all on the community. With clear on-chain mechanisms to provide full transparency on the community decisions that can affect future opportunities, proposals, and ecosystem growth.

Long-Term Sustainability

The $RUST token was designed to be a long-term token. From day one, a multi-year rollout and tokenomics journey was set in motion. The token distribution, along with its utility, were tied to feature expansion and increased demand over time as the RRCC roll out new products and features such as Royalty Rights Tokens, Comic and Music Collectible Experiences, dApp services, and a whole lot more. With the added built in burn mechanics, the economy is designed to decrease in supply, while increasing in demand over time.

Sustaining Token Value

The value of $RUST is based upon its utility and with more than 7 revenue streams in place that bring in value to the economy, driving utility and demand, the sustainability of the token is built around continued revenue generation and value creation that is redistributed within the community through time. One primary focus here is bringing in Real World Value through the tokenization of Real-World Assets (RWAs) such as royalty rights and other IP rights and licenses.

Summary

The RRCC and the $RUST utility token ecosystem have been carefully built out to put the community at the centre of the token economy and to build a sustainable and value driven ecosystem, that grows over time. Transparent, on-chain, incentivized, value driven, $RUST is a token built for you, the community.

You can read more about the whole transparency and tokenomics structure of the RRCC and $RUST token in our docs here.

Thanks to Nakama Labs for the inspiring educational article that provided the topic for this post.