Tokenomics

Economic design surrounding the $XR token

Token Functionality and Utility

Fungible Token Overview

$XR (eXtended Reality), the fungible utility token powering the SWG ecosystem is issued by the Saltwater Foundation and represents significant value in serving multiple orchestration functions.

As a player-focused asset, $XR acts as a vital payment barrier, incentivising high-performing players through competitive gameplay and enabling access to higher levels of competition, tournaments, challenges and training modules.

As a coordination asset, $XR is used for voting on proposals emerging from the SWG Foundation, fostering a decentralised governance model with token staking to maintain a shared vision and ensure the integrity of the Impact Investment Treasury.

$XR further plays a central role in in-game governance, allowing players to actively participate in decision-making through the Decentralised Regulatory Bodies and as a peer-to-peer tool for team managers to coordinate, enhancing team recruitment, management and participation.

Player-Focused Ecosystem Asset

The token facilitates player progression by acting as a payment barrier. High-performing players are rewarded with the native token through competition, allowing them to progress across subsequent barriers in additional gaming modes, training modules, tournaments, and challenges.

In-Game Governance

The token enables decentralised governance of several in-game features, namely the Celeros Regulatory Body and Team Management. While the regulatory body focuses on high-level in-game functions such as rules and regulations, Team Management focuses on uniting player activity under common organisations to pool resources and interact in a more competitive environment.

Governance

Voting power within the Saltwater Games ecosystem is granted through $XR locked up in smart contracts. These tokens are locked up in perpetuity and are subject to a long-term investing schedule which will help limit the transferability of credibility from a well-aligned early financial backer to another individual or organization, should the VIP Paddock Pass NFT be sold or transferred from its original owner. This works to mitigate the dilution or corruption of a shared vision within the Saltwater Foundation Impact Investment Treasury.

Incentives and Rewards

The $XR token is distributed via an array of incentives and reward mechanisms for players, contributors and creators. Players can participate in a number of gameplay modes and entry-level training modules by earning XP in the free-to-play, off-chain points system, where they are rewarded for demonstrating knowledge, skill and participating in membership quests. Players that choose to, participate in risk-based experiences by purchasing or being granted access to premium and high-stakes modes, specialised training modules, and engage in strategic trading of a wide variety of digital assets.

The free-to-play economy utilises an off-chain point system to familiarise players with the reward structure while exposing them to some aspects of the premium economy through cross-over areas in the Training Academy modules and challenges with premium digital assets.

In premium gameplay, the $XR token can be used to enter tournaments to earn more $XR tokens, where tournaments are sponsored by partners, additional $XR tokens are made available in the rewards pools.

The SWG ecosystem functions similarly to a cooperative. Those who contribute and participate the most will be rewarded with $XR reflecting their ability to have their voice heard above those who have less vested interest in the ecosystem's success.

$XR tokens in circulation should proxy the interest from gamers and sponsors in the success of the digital experiences and the objectives of the Saltwater Foundation Impact Investment Treasury.

Meta-Game NFTs

Token rewards are distributed to selected NFT holders who participate and contribute, details can be found in the Celeros Meta-Game NFT section.