When ICO owners decide to tokenise a business model, the ‘whys’ and ‘hows’ of its implementation in the ecosystem become a vital factor in the success of the ICO. Tokenomics, as this concept is called, doesn’t work on a one-size-fits-all formula. Every project must build its token economy in a way that incentivises its use and, at the same time, solves the critical question of why it was conceived.
For the Sgame Pro™ team, the SGM token is the base on which the entire gaming ecosystem will thrive on. Let’s look at how this token will benefit every element on the platform.
What Does it Aim to Achieve?
For the uninitiated, here’s a small recap on the project. Sgame Pro™, a leading mobile game aggregator platform, is aiming to build a system that will overcome existing challenges in the mobile gaming industry to the benefit of players, publishers, merchants and influencers. At the heart of the project lies the SGM token, an ERC-20 standard utility token that will be the sole medium of exchange on the platform. Players will be rewarded with these tokens for playing their favourite multi-player games online, based on activities they complete. Using these tokens, players will be able to buy digital assets and access other games on the platform, without any wait time. They will also be able to challenge each other, based on a certain amount of SGM as reward.
Publishers will be able to exchange these tokens to buy promotions for their games on the platform, and influencers can reward their followers without compromising their image.
The “Proof-of-Play” Protocol
Around 24% of the total token reserve will be kept aside as the SGM liquidity reserve. This will be used to reward players, based on the ‘Proof-of-Play’ protocol, something like the ‘Proof-of-Work’ protocol, minus the computational complexities. This will be a way by which the platform will arrive at a consensus of whether enough ‘play’ has been completed by a player to be rewarded with a ‘Play-Block’. The sizes of these blocks will vary on the basis of time and effort put in.
These tokens will get deposited into the player’s internal SWallet (Offchain). Deposited tokens can then be used to perform all transactions on the platform or transferred to their external wallets (Onchain). Publishers and merchants will be provided with open-sourced plugins, APIs and SDKs, so that players can make purchases using the tokens.
Inflows and Outflows of Tokens
The whole system has been designed in such a way that SGM flow inside the platform is OffChain. This will keep the system clear of the usual problems of the Ethereum blockchain, such as congestion, confirmation times, etc. The SGM liquidity reserve is expected to grow in the future, as the number of participants on the platform increases.
CEO and Founder of Sgame Pro™, Gip Cutrino, stated that the absence of the need to use fiat currencies to buy digital goods will lead to an increase in player engagement rates. The team will aim to maintain at least 10% of its liquidity reserve during its run, and will buy back SGM from exchanges, whenever needed.
The main token sale is scheduled for launch on September 12, 2018. For more information on the ICO, visit sgamepro.io and follow on Facebook, Twitter, Instagram and LinkedIn.