# Tokenomics

## $NIFTY Utility Token

The very first utility token of its kind to utilize trait upgrade game-theory mechanics.

$NIFTY is at the heart of the NiftyRecords ecosystem. It will open the door for future releases, utilities and burning mechanics.

## Supply

The **initial supply of $NIFTY is 0**. The **maximum supply is 144M $NIFTY**

{% hint style="info" %}

### **% Distribution of $NIFTY**

* **Staking:** 75% 
* **Liquidity Pool:** 9% 
* **Creators:** 8%
* **Marketing/Collabs:** 5% 
* **Reserve:** 2%
* **Charity:** 1% 
  {% endhint %}

Only 75% (110M) of the $NIFTY can only ever be produced by staking NiftyRecord NFTs. The rest of the supply is used to stabilize the price in the Liquidity Pool & increase the value through positive incentives.

The only way to earn $NIFTY is by staking a NiftyRecord.

### Halving Periods

The NiftyPoints score will stay the same, but the amount of $NIFTY distributed daily is what will decrease, no matter what % of NiftyPoints you have against the total score of the collection.

The circulating supply is a static volume until it reaches the next halving period. This ensures that the distribution of $NIFTY is always stable, which helps stabilize prices.

There are lots of burning mechanics in place that reduce the circulating supply & increase the value of $NIFTY through scarcity. More info can be found in the Demand section (below). The supply of $NIFTY dropped daily will be reduced every 100 days (approximately). Every 20M of $NIFTY distributed, a halving period will occur. The daily staking rewards of $NIFTY will decrease the daily drop by 20,000 $NIFTY. Every halving period that occurs, the threshold until the next halving period decreases by 2M $NIFTY.

This will give us the flexibility to build and add value to our existing reward mechanics.

### Staking Halving Periods

<table><thead><tr><th width="150">Halving Periods</th><th width="174.6153846153846">$NIFTY Halving Thresholds</th><th width="150">Total Daily Drop of $NIFTY</th><th>Days</th></tr></thead><tbody><tr><td>#1</td><td>20,000,000</td><td>200,000</td><td>100</td></tr><tr><td>#2</td><td>38,000,000</td><td>180,000</td><td>100</td></tr><tr><td>#3</td><td>54,000,000</td><td>160,000</td><td>100</td></tr><tr><td>#4</td><td>68,000,000</td><td>140,000</td><td>100</td></tr><tr><td>#5</td><td>80,000,000</td><td>120,000</td><td>100</td></tr><tr><td>#6</td><td>90,000,000</td><td>100,000</td><td>100</td></tr><tr><td>#7</td><td>98,000,000</td><td>80,000</td><td>100</td></tr><tr><td>#8</td><td>104,000,000</td><td>60,000</td><td>100</td></tr><tr><td>#9</td><td>108,000,000</td><td>40,000</td><td>100</td></tr><tr><td>#10</td><td>110,000,000</td><td>20,000</td><td>100</td></tr></tbody></table>

## **Demand (Burning)**

NiftyRecords has one of the most unique burning mechanisms for an NFT.

NiftyRecords utilizes the top game theory mechanics seen in some of the most popular online games (Fortnite, World of WarCraft, etc.) with ways to invest in your NiftyRecord.&#x20;

We will allow users to purchase 5 different LootCrates (see [What is a LootCrate?](/niftyrecords/what-makes-us-diffferent/what-is-a-lootcrate.md#a-lootcrate-contains-various-niftyrecord-traits-vinyl-label-background-and-adapter-of-all-the-differ)) with dynamically changing probabilities every day. This will allow holders to invest in cheaper LootCrates to build towards more expensive LootCrates that will have high rarity traits with high NiftyPoint (see [NiftyPoints](/niftyrecords/what-makes-us-diffferent/niftypoints.md)) scores. Holders are incentivized to log in daily to view the 5 different loot crates and their levels of probability of getting each trait rarity.&#x20;

*Higher Rarity Traits* = *Higher NiftyPoint Score* = *Higher % of the daily $NIFTY drop*

We will have many other ways to spend $NIFTY post-mint such as new NFT collections, Limited Merch Drops, Vinyl Record Accessories/Memorabilia, Charity, voting on new trait designs, voting on new Independent Artist NiftyRecord Collabs and MUCH MORE.

## **Revenue Allocation**

{% hint style="info" %}

### Alpha & Beta Secondary Sale Royalties Distribution&#x20;

**Marketing:** 75%

**Product Development:** 25%
{% endhint %}

{% hint style="success" %}

### Public Mint Revenue Distribution

**Liquidity Pool:** 50%

**Creators:** 20%

**Marketing:** 8%

**Product Development:** 8%

**Team Expansion:** 5%

**Beta Testers:** 5%

**Alpha Testers:** 2%  &#x20;

**Charity:** 2%
{% endhint %}

{% hint style="success" %}

### **Secondary Sale Distribution**

**Liquidity Pool:** 40%

**Team:** 35%

**Marketing:** 15%

**Product Development:** 10%

**Buying Floor:** 9%

**Charity:** 1%
{% endhint %}


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