Following a couple of announcements revealing more and more about the upcoming $ISLAND token, the final tokenomics update is now finally here before TGE officially takes place at some point during December to start powering play to earn gaming and the creator economy of the free to play metaverse, Nifty Island.
What Does the Final $ISLAND Tokenomics Update Reveal?
This last update teases that play to airdrop rewards have been expanded, while bringing us the final piece of the puzzle: the actual distribution and allocation details of the $ISLAND token.
With a maximum total supply of 1 billion, the $ISLAND token has been allocated across the following key segments: the Community Pool (40% of total supply), Investors & Advisors (30%), and Team (20%). Here is how each section looks like in more detail:
- Community Pool (40%):
- Rewards Pool: 17.5%
- Play to Airdrop: 12.5%
- Ecosystem Incentives: 10%
- Investors and Advisors: 30% (29% for investors, 1% for advisors)
- Team: 20%
- Project Treasury: 9%
- Exchange Liquidity: 1%
Let’s go over each of these categories to learn more about what their purpose actually is, as well as how the allocated tokens are set to be distributed over time.
What Is the $ISLAND Community Pool About and How Is It Distributed?
The Community Pool takes up 40% of $ISLAND’s total supply and is designed to reward players and creators while continuously supporting the ecosystem to keep on incentivizing the userbase to create high quality blockchain gaming experiences.
That being said, the Community Pool is divided into the following 3 categories: the Rewards Pool (17.5%), Play to Airdrop Campaign (12.5%), and Ecosystem Incentives (10%).
Rewards Pool (17.5%)
The Rewards Pool is dedicated to supporting Nifty Island’s Play to Earn System that is set to launch after TGE to enable live $ISLAND token earnings. This means that players will be able to convert the in-game Blooms currency into the $ISLAND token through specific reward cycles, which may last in periods of 10 days. With this system, players are rewarded for being active users enjoying varied gameplay while completing various quests.
This pool will thus power the play and earn system, but it will also help support the growth of this metaverse’s creator economy, with 17.5% of the token’s total supply allocated to rewarding all of the community for their creativity and dedication. This allocation will gradually unlock over the course of 72 months, starting from TGE, according to the emissions chart. Aside from the chart, no specific unlock info for this category was revealed at the time of writing.
Play to Airdrop (12.5%)
This allocation is reserved for players who participated in the Play to Airdrop Campaign, which consisted of 3 waves to earn tokens in, with the final wave ending on November 1st, 2024. If you took part in any wave and earned airdrop points, you should be eligible to earn a share of this allocation, with 25% of your airdrop unlocking at TGE. How the rest of your airdropped tokens unlock depends on whether you stake the 25% or not. If you stake your initial 25%, then the 75% locked tokens will unlock linearly over the course of 3 months. Those who claim their 25% to their wallet without staking will have to undergo a linear unlock period of 6 months.
Ecosystem Incentives (10%)
This pool is designed to encourage developers and third-parties to build metaverse experiences in this web3-powered ecosystem by offering them prizes and grants to do so. Creators thus have an opportunity to not only earn a share of the Reward Pool, but also from this ecosystem pool as well.
How Are $ISLAND Tokens Distributed for Investors, Advisors and the Team?
While the Community Pool makes up 40% of the token’s total supply across 3 categories, the Investors and Advisors have been allocated 30% of the maximum supply, with the team holding 20%. The rest of the supply is reserved for the project treasury (9%) and exchange liquidity (1%).
Investors and Advisors (30%)
Investors (29%) have the 2nd biggest token allocation, as they have helped support the development of Nifty Island with more than $28.5 million funds. According to the official post, these backers have been crucial “in helping us build and bring Nifty Island to market.” The investors are said to be “exceptionally long-termist” and are “aligned with the best interests” of the community.
As a result, the project’s strategic investors, advisors (1%), and angel investors have all agreed to long-term lock-ups. The lockup terms state that 71% of their allocation is fully locked for 2 years from TGE, after which the tokens linearly unlock through a 2-year period. As for the remaining 29%, those are completely locked for 3 years from TGE, and also unlock linearly, but through a period of 3 years instead of 2. Some of the backers who invested into the project and will wait at least 2 years to have most of their tokens unlocked include Hashed, the Solana Foundation, Sfermion, Yield Guild Games, Gabby Dizon, Piers Kicks, and many more.
Team (20%), Project Treasury (9%), and Exchange Liquidity (1%)
20% of the supply is reserved for the team, including the core team and key contributors, in order to motivate the developers to continue expanding their web3 gaming metaverse in a quality manner, while also covering marketing, maintenance, and more. According to the lockup terms, 66% of this allocation is locked for 2 years from TGE, followed by a linear unlock of 2 years, but 34% will start to gradually unlock 1 year after TGE through a 1-year linear unlock phase.
The Project Treasury represents the project’s capital reserve that will first be managed by the team to support initiatives that include development, improvements to the ecosystem, network expansion, and more. This makes up 9% of the total supply, and a piece of it seems to be unlocked at TGE. The Exchange Liquidity also unlocks at TGE to provide liquidity for the $ISLAND token across exchanges, keeping a stable market where transactions can go on smoothly.
Official allocation and distribution details can be found in this litepaper, which initially launched with the first $ISLAND tokenomics update back in September 2024 to give the community details on the actual utility of the ecosystem’s core token. Check out the new dev roadmap to learn more about the future of Nifty Island.
