All the proceeds of the NFT sales are pooled in a decentralized treasury to get an exposure to the most promising Cosmos-based tokens. These assets are used to secure the associated networks, generating recurring returns strengthening Cosmon tokenomics.

The inflation of targeted networks are used to provide to Cosmon NFT holders weekly $XKI returns, as well as to fuel the prize pools of each professionnal league. The treasury management is evolutive to include emerging projects within the Cosmos ecosystem.

The final aim is to create a strategy optimizing several factors:

  • The increase of Cosmon NFTs fundamental value

  • Its stability and resilience over time

  • The recurring returns distributed to NFT holders and brought in the prize pools, increasing players’ engagement

Rewards distribution strategy

The inflation of networks secured by the assets in the treasury generates recurring returns, used to strengthen the three key dimensions of Cosmon tokenomics, having each their own strategic outcomes:

  • The increase of Cosmon NFTs fundamental value: Part of the inflation is compounded, fueling the growth of the treasury over time.

  • The returns distributed to NFTs holders: Cosmons holders benefits of recurring $XKI returns to incentivize players to hold their NFTs and providing them a daily fuel to be used ingame. The returns are increasing with the rarity levels of Cosmons.

  • The recurring fueling of the prize pools: it incentivizes NFTs holders to play the Cosmon game, naturally increasing the demand for cards and items which represents a competitive advantage within the gameplay.

The inflation proceeds will be distributed according to the following rules:

  • 20% gets compounded in the concerned assets,

  • 40% is fueling the $XKI returns distributed to NFT holders on a weekly basis,

  • 40% is brought to the different prize pools.

The $XKI returns dedicated to the NFT holders are distributed according to the level of rarity of the Cosmon cards, providing increasing returns with higher rarity levels (excluding common cards). The allocation per rarity level is fixed and independent of the number of Cosmon in circulation.

Then, each week, 40% of the treasury inflation is distributed to Cosmon NFT holders, providing them a growing returns depending on the Cosmon rarity levels.

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