> For the complete documentation index, see [llms.txt](https://docs.insrt.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.insrt.fun/key-sections/token-mechanics.md).
# 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% |
