# Tokenomics *** ## $GBTZ (Gambitz) Token Overview The $GBTZ (Gambitz) token is the native utility token of the Chess3 ecosystem, powering all platform activities, governance, and rewards. **Launch**: Q4 2026\ **Blockchain**: Solana (SPL Token)\ **Total Supply**: 1,000,000,000 $GBTZ (1 billion tokens) > **TL;DR**\ > Chess3 launches a fixed-supply token ($GBTZ) where **100% of tokens start in a DEX liquidity pool** with **$100k of liquidity**. The project then uses **$100k to buy 10% of the supply** from the market and locks those **100M $GBTZ** as the **reward pool for players**. An additional **$200k cushion** supports the **50% platform rake** for ongoing buybacks, making rewards generous for players while keeping the system sustainable long-term. *** ## Token Distribution **Token:** $GBTZ (Gambitz)\ **Total Supply:** 1,000,000,000 $GBTZ\ **Network:** Solana (SPL) Instead of splitting supply into many buckets, Chess3 uses a **pure liquidity + rewards** model designed for transparency and sustainability: * **100% of tokens are seeded into a liquid DEX pool**\ 1,000,000,000 $GBTZ are paired with **$100,000 USD** of liquidity. * **$100,000 separate buy order**\ An additional **$100,000 USD** is used to **buy 10% of the supply** from the pool.\ This acquires exactly **100,000,000 $GBTZ**. * **Reward pool (10% of total supply)**\ The **100M $GBTZ** purchased by the project becomes the **entire gameplay reward pool**.\ All player rewards are paid from this bought-back supply – no hidden emissions or extra minting. * **$200,000 platform cushion**\ Additional **$200,000 USD** reserve to support the **50% platform rake** and ensure sustainable buybacks during market fluctuations. **Net result:** * **DEX LP:** 100% of tokens start in the LP with $100k liquidity. * **Reward Pool:** 10% of supply (100M $GBTZ) is owned by the project and reserved for player payouts. * **Platform Cushion:** $200k reserve for ongoing buybacks and market stability. * **Circulating Supply:** The rest of the supply is held by the market (liquidity providers + traders), not a central treasury. *** ## Why This Is Sustainable Design assumptions: * **Total Supply:** 1,000,000,000 $GBTZ * **Reward Pool:** 100,000,000 $GBTZ (10% of supply) * **Platform Cushion:** $200,000 USD for buybacks * **Max daily matches:** 88,880 (8,888 NFTs Γ— 10 matches/day) * **Payout split per match:** 75% winner, 25% loser *For detailed sustainability analysis and game limits, see* [*Earnings Simulations β†’*](https://github.com/chess3official/chess3-whitepaper/blob/main/economics/earnings-simulations.md) ## πŸ“Š Earnings Scenario Analysis Based on the recommended configuration (2,000 $GBTZ per game, 10 games/day): | Win Rate | Daily $GBTZ | Daily USD | Monthly $GBTZ | Monthly USD | Annual $GBTZ | Annual USD | | -------- | ----------- | --------- | ------------- | ----------- | ------------ | ---------- | | 100% | 20,000 | $20.00 | 600,000 | $600.00 | 7,200,000 | $7,200.00 | | 75% | 16,668 | $16.67 | 500,040 | $500.04 | 6,000,480 | $6,000.48 | | 50% | 13,335 | $13.34 | 400,050 | $400.05 | 4,800,600 | $4,800.60 | | 25% | 10,003 | $10.00 | 300,090 | $300.09 | 3,601,080 | $3,601.08 | | 0% | 6,670 | $6.67 | 200,100 | $200.10 | 2,401,200 | $2,401.20 | **Key Insights:** * **Even losing players earn $200/month** - meaningful income in many countries * **Average players (50% win rate) earn $400/month** - substantial side income * **Top players earn $600/month** - significant earnings potential * **All calculations based on $0.001 initial token price** ### Recommended Payout Per Match Assuming an initial price of β‰ˆ$0.001 per $GBTZ: | Max daily matches | Recommended daily budget | Gross pot per match | Winner (75%) | Loser (25%) | USD value per match @ $0.001 | Monthly earnings (10 games/day) | | ----------------- | ------------------------ | ------------------- | ------------ | ----------- | ---------------------------- | ------------------------------- | | 88,880 | 177,760,000 $GBTZ/day | 2,000 $GBTZ | 1,500 | 667 | β‰ˆ $2.00 | β‰ˆ $600/month (100% win rate) | | 88,880 | 133,320,000 $GBTZ/day | 1,500 $GBTZ | 1,125 | 500 | β‰ˆ $1.50 | β‰ˆ $450/month (100% win rate) | | 88,880 | 88,880,000 $GBTZ/day | 1,000 $GBTZ | 750 | 333 | β‰ˆ $1.00 | β‰ˆ $300/month (100% win rate) | For 8,888 NFTs, a **1,500–2,000 $GBTZ** gross pot per ranked match is optimal: * Winner earns **β‰ˆ$1.50–$2.00 USD** per game. * Loser earns **β‰ˆ$0.50–$0.67 USD** per game. * A daily grinder (10 games/day) earns **β‰ˆ$300–$600 per month** just from ranked play. *See detailed scenarios including 50/50 and losing streaks in* [*Earnings Simulations β†’*](https://github.com/chess3official/chess3-whitepaper/blob/main/economics/earnings-simulations.md) This is meaningful, life-changing side income in many countries – purely from playing chess. ### Sustainability Check (88,880 Matches/Day = Maximum with 8,888 NFTs) Using the optimal configuration from the range above: * **Gross pot per ranked match:** 2,000 $GBTZ * **Winner payout:** 1,500 $GBTZ * **Loser payout:** 667 $GBTZ * **Daily payout budget (max usage):** 177,760,000 $GBTZ/day * **Reward pool:** 100,000,000 $GBTZ If there were **no buybacks at all**, the 100M reward pool would last: * 100,000,000 Γ· 177,760,000 β‰ˆ **0.56 days** at absolute maximum usage. This demonstrates why **game limits are essential** for sustainability. Now layer in a **50% rake on platform revenue** that is used to **buy back $GBTZ from the market**: * At 177,760,000 $GBTZ/day gross payout level, a 50% rake implies **88,880,000 $GBTZ/day** bought back. * This creates a **self-sustaining system** where buybacks nearly match reward pool outflows. * The **$200,000 platform cushion** ensures buybacks continue during market volatility. With: * **50% of fees redirected to buybacks**, and * **Additional inflows from staking / betting / tournaments**, the reward pool becomes **self-sustaining and potentially growing** over time. ### Summary Metrics | Metric | Value | | --------------------------------- | --------------------------------------------- | | Gross pot per ranked match | 2,000 $GBTZ | | Winner payout | 1,500 $GBTZ β‰ˆ $1.50 USD at launch | | Loser payout | 667 $GBTZ β‰ˆ $0.67 USD at launch | | Daily budget (max usage) | 177,760,000 $GBTZ (β‰ˆ177% of reward pool) | | Lifetime without buybacks | 0.56 days at max usage | | Lifetime with 50% rake + cushion | Self-sustaining with proper game limits | | Top grinder monthly earnings | β‰ˆ $300–$600 USD/month (depending on win rate) | | Minimum earnings (lose all games) | β‰ˆ $200 USD/month | **Key Insight:** The system requires **strict game limits (10/day/NFT)** to remain sustainable, but provides **meaningful income even for losing players** while maintaining **generous rewards for skilled players**. Players earn **real money every single game**, even when they lose, while the tokenomics remain **sustainable and structurally deflationary** thanks to continuous buybacks and capped match volumes. *** ## Token Utility ### 1. Tournament Entry Fees * Pay entry fees for competitive tournaments * Create custom tournaments * Stake on tournament outcomes ### 2. Match Staking * Stake tokens on your match performance * Winner-takes-all matches * Skill-based wagering ### 3. Governance Voting * Vote on platform features * Propose new tournaments * Decide on fund allocation * Shape the future of Chess3 ### 4. Platform Fees * Reduced fees for token holders * Pay for premium features * Access exclusive content ### 5. NFT Upgrades * Customize your Chessalienz * Unlock special traits * Enhance visual effects ### 6. Real-World Merchandise * Custom premium chess sets * Limited edition collectibles * Exclusive branded merchandise * Tournament prizes ### 7. Staking Rewards * Stake tokens for passive income * Stake NFTs for boosted rewards * Liquidity provision rewards *** ## Earning Mechanisms ### Play-to-Earn **Get Paid Per Match**: Earn tokens from competitive matches * **75/25 Split**: Winner receives 75%, loser receives 25% of match rewards * **Daily Limit**: Maximum 10 P2E games per day per NFT (anti-bot measure) * **ELO-Based Earnings**: Higher ELO = Higher tier = Higher earnings * Casual matches: Small rewards * Ranked matches: Moderate rewards * Tournament matches: Large rewards **ELO Tiers** (every 300 points): * Pawn I (0-299 ELO): 1x rewards * Pawn II (300-599 ELO): 1.25x rewards * Bishop I (600-899 ELO): 1.5x rewards * Bishop II (900-1199 ELO): 1.75x rewards * Knight I (1200-1499 ELO): 2x rewards * Knight II (1500-1799 ELO): 2.25x rewards * Rook I (1800-2099 ELO): 2.5x rewards * Rook III (2100-2399 ELO): 2.75x rewards * Queen I (2400-2699 ELO): 3x rewards * Queen II (2700-2999 ELO): 3.5x rewards * King I (3000+ ELO): 5x rewards **Tournament Prizes**: Compete in tournaments for prize pools * Daily tournaments * Weekly championships * Monthly majors * Special events ### Stake-to-Earn **Token Staking**: Lock tokens for passive rewards * Flexible staking: Lower APY, withdraw anytime * Fixed staking: Higher APY, locked period * Boosted staking: Combine with NFTs for maximum rewards **NFT Staking**: Stake your Chessalienz for token rewards * Base rewards for all NFTs * Bonus for rare traits * Maximum rewards for ultra-rare sets ### Create-to-Earn **Host Tournaments**: Create and host tournaments * Earn fees from entry * Build your reputation * Attract top players **Content Creation**: Share chess content * Strategy guides * Match analysis * Educational content ### Refer-to-Earn **Referral Program**: Invite new players * Earn from referral matches * Bonus for active referrals * Tiered reward system *** ## Token Economics ### Deflationary Mechanisms **Buyback & Burn from Platform Fees**: * A fixed share of platform fees (target: 50%) is used to **buy back $GBTZ on the open market**. * Bought-back tokens can be **burned** or **recycled into reward/staking pools** based on DAO decisions. * This continuously reduces effective circulating supply and supports long-term price stability. **Tournament & Event Burns**: * Portion of premium tournament entry fees and special events allocated to buyback-and-burn. * High-profile events = larger discretionary burns. * Community can vote on major burn events via governance. ### Inflationary Controls **Fixed Supply**: * Total supply is hard-capped at **1,000,000,000 $GBTZ**. * No additional tokens can be minted once launched. **Capped Match Output**: * Maximum **10 ranked P2E matches per NFT per day**. * Hard cap of **88,880 matches/day** with 8,888 NFTs. * Keeps maximum daily token outflow from the reward pool strictly bounded and sustainable with buybacks. **Dynamic Reward Tuning**: * Match payouts (pot size) can be adjusted via governance based on: * Player counts, * Market price of $GBTZ, * Size of remaining reward pool. * Ensures the economy remains sustainable while still attractive for new players. *** ## Token Launch Strategy ### Phase 1: Fair Launch * **No VC pre-sale, no team allocation** – all tokens begin in the public DEX liquidity pool. * $100k of liquidity is added to the pool at launch. * A separate $100k buy order acquires 10% of supply for the reward pool. * $200k platform cushion supports sustainable buybacks. * Anti-bot measures on the platform side (match limits, anti-cheat, NFT gating). ### Phase 2: Liquidity * Primary listing on DEXs (e.g. Raydium, Orca). * LP incentives for community-provided liquidity. * Transparent on-chain price discovery via the initial liquidity pool. * Optional trading competitions to bootstrap volume. ### Phase 3: Expansion * Potential CEX listings (target: major exchanges). * Cross-chain bridges for broader access. * Strategic partnerships and integrations to bring new players into the Chess3 ecosystem. *** ## Governance ### DAO Structure $GBTZ holders govern the platform through: **Proposal System**: * Any holder can propose * Minimum token threshold * Community discussion period * Voting period **Voting Power**: * 1 token = 1 vote * NFT holders get bonus votes * Staked tokens count double * Delegation supported **Decision Areas**: * Platform features * Fee structures * Treasury allocation * Partnership approvals * Tournament formats *** ## Risk Management ### Price Stability * Gradual token release * Market making support * Liquidity incentives * Burn mechanisms ### Economic Sustainability \-- No uncontrolled emissions – fixed supply, capped match rewards -- Multiple revenue streams (fees, tournaments, staking/betting) -- Buyback-and-burn mechanisms to support long-term value -- Community-first approach with transparent on-chain data and DAO oversight *** ## Future Enhancements ### Planned Features * Cross-chain compatibility * Advanced DeFi integrations * NFT fractionalization * Lending/borrowing markets * Prediction markets *** **The $GBTZ token isn't just currencyβ€”it's ownership in the future of competitive chess.** *Detailed tokenomics will be finalized and announced closer to launch date.* --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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