What is the Halving protocol? Natural Supply & Demand ?

Modified on Sun, 24 Apr 2022 at 04:55 PM

When crops are harvested in game they can be exchanged for the Sunflower Land Token. As more people farm and the overall supply increases, the rewards also lessen. This means someone playing in the early days will receive a significantly higher amount of rewards for harvesting a sunflower compared to someone in the future.

You can think of this similar to Bitcoin Halving and how Bitcoin have become harder to mine after each halving event. During Stage 1, our farmers are the 'miners' who are trying to earn SFL

SFL rewards are based on the total supply of the token. When the supply is less than 100, 000 farmers receive $0.02 when they sell a sunflower. On the other hand, when supply is between 100, 000 and 500, 000 farmers will only receive $0.01 when they harvest a sunflower.

Tokens in supply

SFL per Sunflower Harvested

Less than 100,000

$0.02

Less than 500, 000

$0.01

Less than 1, 000, 000

$0.004

Less than 5, 000, 000

$0.002

Less than 10, 000, 000

$0.001

Less than 20, 000, 000

$0.0005

Less than 30, 000, 000

$0.00025

Les than 40, 000, 000

$0.000125

Less than 50, 000, 000

$0.0000625

Every 10 million tokens half again.

Kitchen Recipes

The amount of SFL required in each recipe is dynamically calculated based on the total supply of the token.

meaning that the SFL cost for each upgrade will be halved as well.

Utility of the token (burn) ?

The game supports 50+ rare collectibles and NFTs that can be crafted using SFL and other in-game resources.

While the token becomes scarcer, all NFTs, tools and other craft-able items retain the same price.

This ensures that these items become harder to attain over time and also ensures the demand for the token stays high.

When you craft an item, the SFL is sent to the burn address. While the total supply increases and the rewards lessen, the amount of circulating supply also decreases as SFL is burnt.

Fractional Tokens

You might be thinking, won't tools be too expensive in the future? The underlying tools themselves (such as an Axe) can actually be fractionalized and used on resources as well.

For instance: In the future players will craft 0.001 of an Axe and collect 0.001 of Wood.