🪙Tokenomics

Digital Assets

• Token Standards: NE Play Coins and NE Stake Tokens will adhere to widely accepted token standards, ensuring compatibility with various wallets and exchanges.

• Deflationary Mechanism: NE Stake Tokens will incorporate a burn mechanism, reducing the total supply over time and contributing to value appreciation.

• High Float and low FDV: Keeping in mind the challenges faced by legacy tokenomics, NE Stake Tokens will have a high initial release with a very low subsequent release of tokens thereby reducing sell pressure upon future token unlocks. This has been done keeping the best interest of the community in mind.

NE Treasury

The NE Treasury will play a crucial role in the NE Play Ecosystem by issuing digital assets (i.e., NE Play Coins and NE Stake Tokens), managing liquidity, and ensuring these assets maintain their intended value.

Issuing Digital Assets:

The NE Treasury will offer NE Play Coins and NE Stake Tokens to retail users, NE Play Ecosystem entities, and third-party partners such as gaming companies. These coins will be available for purchase in exchanges.

Liquidity Management:

At all times, the NE Treasury will maintain sufficient cash reserves to redeem 100% of NE Play Coins at a set floor price (minimum price). This will ensure liquidity and uphold trust in the value of the digital assets.

Surplus and Redistribution:

When NE Treasury sells NE Play Coins above the floor price to retail users and partners, it will generate a cash surplus beyond the required redemption reserve. This surplus will allow for the issuance of additional NE Play Coins or cash rewards, which can be distributed to NE Play Ecosystem partcipants.

Market Dynamics:

The NE Treasury will maintain NE Play Coins' market stability by ensuring price trades between the established floor and ceiling limits in the secondary market. If prices drop below the floor, users will be incentivised to buy and redeem coins for more than their floor value. Conversely, if prices rise above the ceiling, users will be able to buy directly from the NE Treasury, preventing prices from exceeding the ceiling and maintaining equilibrium.

The NE Treasury will play a pivotal role in ensuring the stability and reliability of NE Play Coins within the NE Play Ecosystem. By managing liquidity and fostering a stable market environment, the NE Treasury will build confidence among users and partners, driving engagement and growth across the ecosystem.

NE Play Coin

NE Play Coin will be a unlimited supply coin on the blockchain that will serve as the ecosystem's primary currency, loyalty point system, for incentivising user engagement and fostering ecosystem adoption. The coin will not be designed to appreciate over time, so users don’t have the incentive to hoard it, but rather spend it within the ecosystem. Most end users will earn, hold, and spend NE Play Coin while interacting with the ecosystem. For many, it will be the first crypto asset they will hold.

Pricing Dynamics

• Floor Price: NE Play Ecosystem entities and redemption partners will be able to sell NE Play Coins back to NE Treasury at a fixed floor price, ensuring a stable base value.

• Ceiling Price: End users will acquire NE Play Coins at a higher ceiling price, facilitating rapid acquisition but limiting secondary market fluctuations.

3rd parties partners will be able to directly purchase NE Play FCoins to incentivise user engagement and rewards distribution. For example, if they want to reward their customers with NE Play Coins, they can buy them at a discount from the ceiling price.

Earning NE Play Coin:

Users will earn NE Play Coins through various activities, including loyalty point conversions, playing games on PYG, referrals, social media engagement, and participating in campaigns organised by NE Play Ecosystem or any 3rd party partners. Secondary market acquisitions and direct purchases from the NE Treasury will provide additional avenues for NE Play Coin acquisition.

NE Play Coin Utilisation:

Users will be able to spend NE Play Coins with the NE Play Ecosystem entities and 3rd parties, unlocking various services and redemption opportunities. Transfer and withdrawal restrictions will be applied to maintain ecosystem gamification and incentives.

NE Stake Token

NE Stake Token will be a fixed supply token on a blockchain, designed as an investment asset with a deflationary "burn" mechanism. As the NE Play Ecosystem grows, the total supply of NE Stake Tokens will decrease over time, encouraging value appreciation.

NE Stake Token is designed to significantly appreciate over time, as the ecosystem grows. Initially, NE Stake Token will be used to raise funds for the ecosystem and will be offered to and held by crypto-savvy investors, both institutional and retail.

Deflationary Mechanism

NE Stake Token will incorporate a deflationary mechanism, where tokens will be permanently removed from circulation when users swap them for NE Play Coins or by the NE treasury which will allocate 40% of the NGR (Net Gaming Revenue) generated by the NE Play Ecosystem entities to buying NE Stake Token on the open market and removing them from circulation permanently, by sending them to a dead address (burning). Additionally, when users buy NE Play Coins at a discount with NE Stake Tokens, a portion of the Super tokens is sold for cash on the secondary market to cover the price difference. The surplus is burnt and permanently removed from circulation. This reduction in supply over time creates a feedback loop where NE Stake Token is directly supported by the health of the NE Play Ecosystem.

Incentive Structure

The value of NE Stake Token will be closely tied to the growth of the ecosystem. As the ecosystem generates more NGR and more NE Stake Tokens are burnt, the average value per NE Stake Token will increase. This will create a strong incentive for investors to hold onto NE Stake Token, anticipating future appreciation.

Acquiring NE Stake Token

NE Stake Token will only be available for purchase during its initial launch and later through crypto exchanges. There will be no mechanism to directly earn them within the ecosystem, ensuring a controlled supply and maintaining its perception as a premium, valuable asset.

Buying NE Coins with NE Stake Tokens

Users will be able to purchase NE Play Coins with NE Stake Tokens, in addition to buying them with cash. When they buy with cash, they will get NE Play Coins at the ceiling price. If they pay with NE Stake Tokens, they will receive them at a discounted price, meaning they will get more NE Play Coins for the same dollar value spent. When users pay with NE Stake Tokens, a portion of the NE Stake Tokens will be sold for cash on the secondary market to cover the floor price, and the surplus will be burnt, permanently removing it from circulation. Users who want to buy more NE Play Coins will be incentivised to buy NE Stake Tokens instead of using cash, as they will get more of them with NE Stake Tokens. This will generate transaction volume for NE Stake Tokens and permanently reduce the NE Stake Token supply, making the remaining supply more valuable.

Token Supply and Distribution

The total supply of NE Stake Token will be capped at 1,000,000,000 (one billion), a standard supply number for similar projects.

Initial Supply Allocation

Private and Public (65%)

This allocation will be for institutional and retail investors across multiple private and public funding rounds. Tokens will be gradually released over time, subject to specific vesting schedules for each funding round.

NE Treasury (15%)

Reserved for NE Play Group entities via NE Treasury to cover development and operational expenses for projects such as PYG, Luyulex, Sportsbook Trading Platform, and Crypto Casino. The treasury will also work to use Stake tokens to:

• Invest in third-party projects and companies within the NE Play Ecosystem.

• Attract Key Opinion Leaders

• Develop initiatives that generate positive network effects.

Investments will be strategic, aiming for returns in user adoption, participation, and demand for NE Stake Token, rather than providing no-strings-attached grants.

Founders (15%)

Allocated to the founders with a linear vesting schedule over three years.

Liquidity (5%)

This is the allocation market makers will use to provide liquidity for NE Stake Token on exchanges.

Release Mechanism

This allocation and a vesting period applying only to the team creates a situation where 90% of the token supply will be unlocked on the first day of trading, eliminating the fears of future buyers afraid of token price crashing in the future when more token supply is unlocked and released into circulation (the “low float, high FDV” problem).