Economy Fundamentals
The inescapable conclusion from the discussion about the fundamentals of money is that the only important economic engine and true and sustainable source of value is the energy invested through purposeful action. For Snook that is playing Snook.
That purposeful action is directly accrued and stored (or measured by - there’s no real difference) in the snook-NFT and indirectly in $SNK. When we discuss supply and demand we need to address both forms of value “yardsticks”.
These two sides of the Snook economy, namely, the $SNK and the Traits and Special Skins are fundamental to understanding the mechanics of the economy. We’ll start with the less obvious one - the Trait Economy
Snook's economy is based on two protocols, ERC20 and ERC721 (for its NFT).
The $SNK is an ERC20 cryptocurrency. We say cryptocurrency and not a crypto-token because we discern between the two. Crypto-tokens do not have to be money at all. Our snook-NFT is such a token. Instead they are defined by their utility. Just like the bracelet in a theme park or the jeton at the casino are not currency - simply because they are not acceptable tender outside their function. The three main categories that map the crypto ecosystem are: Utility tokens, Security token, and Currency replacements.
We see the $SNK as a currency replacement. We also see it as a utility token, but that does not matter, because all currencies also meet the criteria for utility.
Let’s start with why it is not a security. That one is easy. We do not think the $SNK is a security because it does not meet the Howey test, nor the Reves test.
The reason we see it as a currency replacement is because, as we implied, the distinction between a utility token and a currency replacement has very little to do with the substance. In fact, historically, all currencies started as utility tokens. In time they became popular and they gradually morphed into a currency state. The most recent example of that is the M-Pesa case in East Africa (circa 2006), where a cell-phone token for topping-up prepaid contracts, became a regulated currency. The reality is that the distinction is a matter of use and popularity and has little to do with the function or utility.
The snook-NFT is based on the ERC721 protocol.
snooks are the characters used by the users in-game. Upon death inside the game, the snook is burned if no resurrection has been placed by the user. snook NFTs are storing all the necessary game events like score, traits collected, skin appearance, and so on. With the right rarity, snooks are also applicable for rewards to incentivize the users to keep on exploring new special skins and increase their Snook's rarity through skill, time & adrenaline.
Last modified 1yr ago