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Token Mechanics

Summary

  • We will be implementing a dual-token model to incentivize both sides of the marketplace
  • $MINT is a non-tradable overcollateralized stablecoin that increases in value as users play Insrt. The token is powered by betting volumes and a function of user EV. It can be thought of as the first points system backed by a stablecoin (which is pegged to ETH)
  • $INSRT is a tradable token that functions as our equivalent of the protocol token / governance token. Value to the $INSRT token accrues via treasury buyback mechanism. $INSRT is used to incentivize the supply side of the marketplace
  • $MINT to $INSRT convertibility introduces a game theoretic element wherein an agent within the system can choose to transfer from high vol / high var to a more stable source of value accrual
  • For both tokens, the key value accrual driver is volume generated by the game itself

$MINT Mechanics

$MINT is a token that users earn when playing the game. $MINT holders generate more $MINT when other users play. $MINT is backed by ETH (1 : 1,000,000) and is redeemable for ETH at any time, with the reedemeability function designed to be over-collateralized at any time.
$MINT can be thought of as a points system wrapped around the first EV (Expected Value) stablecoin powered by 100x-1000x bets. Holding $MINT tokens can make a user entitled to the governance token airdrop.
In our case, the points aren't just a way to farm incentives within the game, but are a core aspect of the game itself.

Jobs-to-be-Done

Users can earn $MINT in two ways
  • Play the game
  • Hold $MINT, as they will be given more $MINT when other users play
Outside of these core jobs, users can earn more $MINT by:
  • Directly inviting other users to play
  • Completing daily / weekly challenges on the platform
$MINT incentivizes the following behaviors:
  • Users playing, winning $MINT and coming back to check $MINT accrual on a periodic basis as a Bottom of the Funnel (BOF) users, completing challenges to earn even more $MINT
  • Users playing, winning $MINT and spending some $MINT to redeem a prize, to provide finality for their session
  • Users holding $MINT and inviting other users to play the game to gain additional $MINT rewards either for game time or to redeem prizes on the platform. With this incentive cluster, users can capture value in a positive-sum way (encouraging more platform activity)

User story

Bob is activated as a user and tries to win a prize that he really wants. Through a game session lasting three minutes, Bob accrues $MINT. With his randomized $MINT wins, he has already covered two of his mints / spins. However, as Bob did not win a prize from minting, he uses half of his last over $MINT to redeem a prize on the platform, while holding the rest for future value accrual. Bob invites some of his friends to win more $MINT, so that he can either continue playing or redeem for a prize again.

Composability

  • $MINT has strong synergies with any chain that has a native yield component as it compounds rewards for users
  • As $MINT is effectively a points system backed by ETH, an integration with a lending market primitive would enable users to leverage their $MINT holdings for either open market traders or to play with leverage
  • We believe $MINT can be used as a currency by other products and protocols to reserve variable rewards for their own users out of our prize pool, enabling a B2B2C motion on the demand-side of the platform / protocol. However, this can also be accomplished once we have reached at least $50m+ in annual volume

Cross-chain

Our initial deploy strategy is to launch to Blast due to native yield functionality enhancing value accrual for $MINT. However, in the future, we want to expand to other changes. When expanding to other chains, a key criterion is evaluating whether the design of the system enhances the value accrual of the $MINT token.
In that sense, each deployed $MINT on a different chain should provide a slightly different value accrual mechanism. The cross-chain component for $MINT will be faciliated by Axelar.

$INSRT mechanics

$INSRT is a tradable token with a fixed supply that can be acquired by providing supply to the platform, converting $MINT to $INSRT through burning $MINT or through open market purchases. $INSRT incentivizes the supply-side to create or list prizes for users. Value will accrue to the $INSRT token through a treasury buyback mechanism of the token.

Purpose

The $INSRT token solves for two issues:
  • Suppliers need a guaranteed incentive to provide supply to the system
  • Insrt is not designed as a raffle or as a lottery that has a reserve, thus creating the risk that only very risk-on suppliers will add supply to the protocol due to loss aversion
The $INSRT token solves for this by providing an incentive for potential suppliers to interact with the system by providing incentives for depositing supply, while also off-setting lack of volume or a negative outcome through providing $INSRT rewards through out the listing period.

Design logic

  • By providing the supply side $INSRT tokens, we over time make the supply side a significant beneficiary of the protocol fees generated by the platform
  • The design space for protocol tokens for betting platforms usually entails obtaining bankroll for the game
  • Insrt is a two-sided platform that does not need significant amounts of initial capital to get started
  • What we need to accomplish is generating a supply-side that leverage their audience to provide prizes, so that we have a low Cost Per Acquisition by acquiring warm traffic
  • $INSRT adds another layer of incentivization for the supply side outside of the fees they can generate from user volume or can be credited in Insrt

Jobs-to-be-Done

  • Users can list or create assets on the platform for token incentives
  • Users can maintain the listing in order to accrue more $INSRT over time
  • A listing that is won generates more $INSRT - thus encouraging the supply side to think pragmatically about the prize created and the settings for the prize

Functionality

$INSRT holders will be able to burn their tokens in order to improve the prominence of their listing. If a user believes that they will generate more value (in fees or attention) by having a more highlighted place in the marketplace, they can spend $INSRT as a form of ad spend. This also leads to an additional burning mechanism for the $INSRT token outside of treasury buybacks.

User story

Alice is a Twitter personality and a contributor to a restaking protocol. She decides to create a prize where the winner of the prize will get tokens providing restaking rewards and an NFT providing access to an exclusive community event. She purchases some $INSRT beforehand. When listing the asset, she spends $INSRT to ensure that its highlighted on the platform. The asset was won three days later. Alice accrued $INSRT with every single bid on the platform, as well as when the asset was won by a player.

Value accrual

Value accrues to the Insrt token by providing upwards price pressure through periodic treasury buybacks.

Governance

Over time, we will move towards decentralization, holders the ability to vote for PIPs relating to:
  • Game economics, including $MINT incentives
  • Treasury buybacks
  • $INSRT mechanics, incentive schedules and distribution

Key Parameters

Total Supply: 1 billion
Total supply emitted at TGE: 30 million (30%)
Group
Unlocked at TGE
Lockup period
Vesting period
Allocation
Product incentives
5%
-
36 months
38%
Treasury
5%
-
36 months
5%
Investors
-
6 months
24 months
25%
Team
-
6 months
24 months
15%
Marketing
-
-
36 months
4%
Advisory
-
-
36 months
3%
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