Portal Charging Rewards
Incentivizing gameplay
In CryptoFights, players can craft one of the rare items called portal fragments. These digital assets represent gameplay effort, are extremely hard to acquire and can be used to charge portals and earn passive rewards from the game. To learn more about portal charging, click here.
Each week, a new reward cycle starts, players burn fragments to charge their portals signaling their stake in the pool, and at the end of the cycle rewards are dispersed equitably.
The pool size is by a formula we will cover in the next chapter. But, long story short, we expect that over time players will get less tokens when charging portals, this is due to two factors:
Since the pool is divided by all players staking, and MAU will increase, there will be more players to share the pool with
After a peak at around year 3, the pool sizes will decrease (see next chapter)
This will create positive pressure on token increasing it's scarcity and the token's value. This mechanism encourages early participation and investment in the game, as players who engage early stand to gain more from their staked fragments, but it is also balanced to account for rising player adoption during the first 3 years.
More importantly, it allows us to establish a fixed supply with predictable rewards over a very large period of time. Over time, as the reward subsidies decrease, the scarcity will incentivize sustained engagement and strategic gameplay on an ecosystem centered around the portals.
This scheme of diminishing reward distribution ensures that CryptoFights:
Rewards early adopters for their gameplay effort early on;
Disperses the Token to the broadest audience possible.
Much like miners compete for block rewards, CryptoFights players compete for Tokens by Burning Fragments for fuel. Portal Charging explains this "Proof of Play" mechanism and how Players obtain fragments. This distribution mechanism based on burning Portal Fragments serves a dual purpose:
It rewards players for being better than others and provides an endgame mechanic that generates passive rewards;
It acts as an item sink to control item inflation. Surplus gameplay effort, which might otherwise lead to item inflation (e.g., in scenarios similar to WoW's auction house), is thus converted into a more condensed representation of value— the Token — alleviating inflationary pressure within the game's economy.
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