Hello karate Combat Community,
I’d like to propose the addition of a $KARATE token burning and staking mechanism, let me explain how this could be implemented in an easy way:
Right now, once an event is over, users who voted on the winning fighters earn a % of their voted KARATE tokens, and Fighters themselves, winning the fight or losing the fight, also earn KARATE tokens for their participation.
But what if a small fee % is taken on these earned KARATE tokens after each event, from each winning user/fighter and burned half of it, and use the other half to fund a staking pool, to reward future $KARATE token stackers.
This would add deflationary value to the KARATE token, plus, it will allow the league to offer staking rewards to KARATE token stakers, fully funded by this small fee % they take from winning users.
At the end of the day, it’s Up Only Gaming, with no way of actually loosing any of your tokens when voting, I see no reason why people would be against taking a very small fee % on each of our (and fighter’s) KARATE winnings and use that fee for something good.
Something good? Let’s dive into the positive points:
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Staking Incentives: By directing half of the fee to a staking pool, it would provide continuous rewards to users who stake their KARATE tokens. The Staking pool will be refueled after each event, making it a very sustainable option. Plus, offering Staking to Karate Combat users could potentially lower the selling pressure that the KARATE token has been facing after each event.
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Higher Returns: As the staking pool grows with each fee collected after each event, the rewards distributed to stakers would increase, making staking more attractive to both current and potential users.
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Token Burning: Burning half of the fee tokens would reduce the total supply of KARATE tokens over time, creating a deflationary effect. As the supply decreases, the value of the remaining tokens could increase, benefiting all token holders.
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Value Appreciation: The deflationary pressure on the token supply could drive demand and value appreciation, making KARATE tokens more attractive to investors and users.
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Balancing Supply and Demand: The dual approach of funding a staking pool and burning tokens helps balance the supply and demand dynamics of the KARATE token, ensuring a healthier economic model.
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Active Participation: Users are more likely to engage actively with the platform if they see tangible benefits from winning (staking rewards) and long-term value appreciation of their tokens.
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Community Growth: An attractive staking mechanism and deflationary tokenomics can help grow the community as more users become interested in the benefits offered by holding and participating in the KARATE token ecosystem.
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Performance-based Fees: Implementing fees on winners aligns economic incentives with performance, encouraging participants to strive for excellence. Winners would be rewarded not just with their prize, but also through potential increases in token value over time due to the deflationary mechanism.
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Network Transparency: The use of the Hedera’s technology ensures transparency in fee collection, distribution, and burning processes, building trust among users regarding the fairness and integrity of the system.
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Clear Value Proposition: Clearly defined use of fees (staking rewards and token burning) provides a straightforward value proposition to users, enhancing the attractiveness of the KARATE token ecosystem.
Conclusion:
Implementing a small fee on every winning user, with half funding a staking pool and the other half burned, could offer substantial benefits for the Karate Combat ecosystem. This dual approach enhances user engagement by providing continuous staking rewards and fosters long-term value appreciation through a deflationary mechanism. By incentivizing users to stake their tokens and actively participate, it drives community growth and ensures economic sustainability. Additionally, the transparent and fair allocation of fees builds trust among users. Overall, this strategy could create a more vibrant, committed, and financially robust ecosystem, aligning the interests of participants, investors, and the league itself.
Thank you for taking the time to read my dual-proposal. I truly think this could change the game for the Karate Combat league and for the current and future token holders.
Feel free to share your thoughts below!
Greetings,
Level Up Trading
