MATCHI’s Tokenomics

The design of the economic system in the game is very important. Especially blockchain games with financial element called GameFi. When the playability of the game does not fully meet the needs of players, the stimulation of the economic system and the complete cycle are a key to the sustainability of blockchain games or financial games.

We believe that matchi, as a blockchain game, already has a certain logic of sustainability. Because there is such a demand for paid dancing in the market, and many non-blockchain dance fitness apps also use motion capture technology to correct users’ movements, but their business does not revolve around the token economy and only sells lessons.

From the perspective of games, this demand is reflected in the existence of dance games from the era of Dance Machines to the era of PC Games and then to the era of Mobile Games. Although its users are not large, but these players have a certain degree of loyalty. Moreover, dance has better social attributes than fitness. Whether in the animal kingdom or the early days of humans, one of the most important and most useful uses of dance is to communicate within the group and even choose a mate.

There are some GameFi, or Play to Earn games. Their value-added method comes from the ever-growing number of users. When the growth rate of users slow down or decline, stampede events will occur, because many front-end players’ income comes from the latter players, and a virtuous market supply cycle has not been formed. In MATCHI, the ordinary player at the beginning may be just a dancer, and he get certain rewards through the Play to Earn mode. Most of this reward comes from his payment for purchasing NFT. When he has a certain amount of experience and is proficient in the gameplay, he can arrange his own dance music and make it into a dance music NFT(called TAPE-NFT) for other players to use. At this time, he will get positive income and bring positive income to the platform. In this process, a lot of social gameplay will be generated, and even offline social activities will be promoted.

MATCHI’s economic system is divided into Token and NFT. MCH (Matchi Token) is similar to proof of equity, and NFT is more like a commodity, but this is not absolute. MCH has an initial issuance, and also has an additional issuance and destruction mode. NFT has an initial Body-NFT total of 2400. Other NFTs are generated based on Body-NFT. MCH needs to be destroyed or locked when generating other NFTs.

As mentioned in the Whitepaper. The initial supply of MCH is 400 million. Afterwards, there are two ways to increase. The first is to increase supply close to 100 million through Staking. The second type is to issue nearly 500 million additional supply through the Play to Earn model. The final total circulation is about 1 billion. This increase is related to time. Staking increases 0.1% of the balance every day, which is almost half of the total supply in 2 years. Play to Earn will issue 0.2% of the balance daily, which is expected to be half of the total issuance in one year. This additional issuance eventually brought the supply close to 1 billion.

Of the initial allocation of 400 million, 50% is used for fundraising, and 50% is used for various rewards for the team and partners. Among them, the Foundation shares will be circulated directly at the beginning, and the others will have a lock-up period and a release period.

| Allocation       | Proportion | Quantity    | Rule                                                                                                        |
| --------------   | ---------- | ----------- | ----                                                                                                        |
| Private Sales    |        30% | 120,000,000 | Lock 1 year, and unlock linearly for 6-18 months.                                                           |
| Public Sales     |        20% |  80,000,000 | Unlock 20% immediately after exchange listing, the rest unlock for 90 days (Subject to the final rule).     |
| Co-Funder        |     12.50% |  50,000,000 | Lock 1 year, and unlock linearly for 12 months. Distribute by months and complete key tasks.                |
| Marketing Team   |     12.50% |  50,000,000 | Lock 1 year, and unlock linearly for 12 months. Distribute by months and complete key marketing data.       |
| Development Team |     12.50% |  50,000,000 | Lock 1 year, and unlock linearly for 12 months. Distribute by months and complete product milestones.       |
| Foundation       |     12.50% |  50,000,000 | Unlock immediately when contract deployed. Used for airdrop, activities, and inflow to DEX liquidity pools. |

There are also two ways to reduce supply, one is Burn and the other is Locking. The clearest way to destroy is when the Dancer-NFT is generated through the Body-NFT. A certain amount of MCH needs to be burned. According to the experience of the game industry, we estimate that the cost of upgrading a character is 5 to 10 times the cost of acquiring the character. That is, if the initial consumption and destruction of a Dancer-NFT is 100MCH. The subsequent consumption is about 500 to 1000MCH. If there are 100,000 users, minting Dancer-NFT needs to burn10 million MCH, as well as about 50 million MCH consumed for this costume upgrade. In addition, minting Dance-NFT is MCH that needs to be mortgaged, and 50% of the MCH from the sale of props is burned, and the other 50% is given to the creator of the props as his income. There are also 10% of the transaction fee for other transactions to be burned. We finally estimate that when there are 200,000 users, all the required additional supply will be burned or locked. For a really popular game, this number of users is not too much. It may be necessary to adjust the parameters and ratio of destruction through DAO voting when the number of users is close to 100,000.

In the end, we can see that, like all blockchain games, the entry threshold for early users is low, while the entry threshold for later users increases with the increase in MCH value. Therefore, there is also a Gold-Coin in the game, which has an exchange relationship with MCH, but it cannot be circulated outside the game. This Gold-Coin can also be consumed in some scenes in the game, and it will also participate in the distribution of MCH for Play to Earn every day.

Matchi’s assets have 2 lines, one is MCH and the other is NFT. All generation of the NFT line needs to be supported by the MCH line. Except for the earliest 2400 which are officially sold, the later ones all need MCH as combustion. We designed such an economic model to hope that early users can get better returns. Although later users have low returns, they can still play games very well. For players who play well or teach others to dance, they will get real considerable benefits.