Design and Mechanisms

Functional Architecture

Payment Barriers

Payment Barrier Overview

The token is primarily used as a payment barrier for in-game use cases. The token is granted to players through performance-based and competitive-based gameplay. The token can then be used to access and cross additional barriers and compete against other high-performing players. This allows the token to limit progression in accessing higher stakes gaming modes, promoting the best players and contributors.

The token can be purchased on the open market via exchanges, however, it does not guarantee improved performance in the game - only access to higher-stakes gameplay where players must demonstrate higher performance acumen and compete against more skilled players.

The tournament, single-race, and challenge mode race specifications limit the concept of “pay-to-win” where players can upgrade vehicles with on-chain performance parts to gain a competitive advantage but must remain within specific boundaries of these upgrades to participate in these races.

Price Stability Discussion

The use of $XR as a payment barrier requires some stability in the payment medium. Since the token is partially being leveraged as a fundraising asset, the token price is subject to volatility via investor liquidations and trading volume. This creates significant difficulty in pegging the token price to a specific value through either algorithmic stabilization or treasury management.

SWG will revisit the concept of pegging token value to a common value such as BTC, USD or EUR once the following criteria have all been met:

• Investor distributions are complete

• Corporate liquidations of native token revenue are balanced

• SWG releases all planned gaming titles that incorporate the use of $XR

• User base and economic stability are demonstrated through fluctuating market conditions

Token Economics and Monetary Policy

Token supply and inflation/deflation mechanisms

The $XR token is designed to have a fixed supply, promoting scarcity and value retention. To strike a balance between rewarding players and maintaining token stability, the ecosystem employs carefully structured token rewards based on player performance and competition. Additionally, value sinks such as entry fees for premium gameplay modes and NFT maintenance costs help regulate token circulation and prevent excessive inflation. This approach creates a sustainable and resilient token economy that benefits all participants in the ecosystem.

Economic Incentives for Players and Investors

$XR tokens offer attractive economic incentives for both players and holders. Players are motivated to improve their skills and performance by utilising $XR tokens as payment barriers to access higher-level gameplay modes, tournaments, and challenges. This creates a merit-based system where high-performing players are rewarded with additional opportunities to compete and progress. On the other hand, holders gain benefits from platform revenues generated within the gaming economy that are diverted back to the Saltwater Foundation Impact Investment Treasury, aligning interests between game economy development and the platform's mission of driving positive social impact. This integration of economic incentives ensures a vibrant and engaged community of players and investors working towards shared goals.

Token Staking and Rewards Distribution

Token staking plays a crucial role in the ecosystem, granting users access to in-game governance and managing in-game businesses. For example, the regulatory body within Celeros parallels the larger Saltwater Games DAO structure in the sense that voting power is granted to players who lock their token stake on the platform. Similarly, the Racetrack NFT economy grants users voting power in this manner to make decisions on tournament participation, monetary strategies, advertiser selection, and more. This incentivises active participation and contribution from community members, fostering a sense of ownership and commitment to the ecosystem's growth and success.

Governance and Decision-Making

Saltwater Games Governance Framework

The governance framework ensures decentralised and transparent decision-making within the Saltwater Foundation Impact Investment Treasury. Its primary objective is to engage all participants in making choices that positively impact the physical localities of users and society broadly. Through a gradual transition of authority from the Saltwater Games team to DAO members, collective decisions are made regarding investments, risk evaluations, and fund management. This approach empowers all stakeholders to contribute to the DAO's mission of supporting vital projects and charitable causes.

DAO Member Roles and Responsibilities

As token holders in the Investment DAO, participants hold significant responsibilities. They actively participate in identifying potential investment opportunities and evaluating their viability. During the evaluation phase, members play a key role in assessing risks and discussing investment strategies. As the DAO shifts control to its members, their voting power is proportionate to their $XR token holdings, enabling them to influence critical decisions and contribute to the success of the DAO's social impact initiatives.

DAO Proposal and Voting Mechanisms

The governance framework relies on blockchain-based smart contracts to ensure fairness and transparency. Proposals are presented for voting by the Saltwater Games team and DAO Custodians. Participants have ample time to vote for or against proposals, with voting power determined by their $XR token holdings. They can distribute their voting power among various proposals as needed. Decisions are made through majority voting, and mechanisms are in place to prevent conflicts of interest, ensuring an equitable decision-making process for all stakeholders.

Game Economy Micro-Governance Features

In-game governance functions in the Celeros gaming ecosystem are facilitated by the Celeros Pit Pass and Race Track NFTs. The Celeros Pit Pass empowers racing teams and guilds to govern tournament structures, regulations, and rewards, while Race Track NFT owners can propose their tracks for tournaments, generate revenue through advertisements/sponsorship and influence track utilisation. These assets provide players with a direct say in decision-making, promoting player engagement and a collaborative gaming experience.