Nyan Heroes Shares Details of its Tokenomics Amid Recent Crypto Turmoil

Newcomers and OGs can better understand how the NFT game's token system works.

Nov 19, 2022
by Akira Ming
Nyan Heroes Shares Details of its Tokenomics Amid Recent Crypto Turmoil
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Nyan Heroes has dropped a refresher on $NYN and $CTNP tokenomics

Given the recent crypto turmoil, Nyan Heroes has decided to publish a refresher on how its in-game tokenomics work. The project hopes that such information will answer any questions regarding the stability of its token system. 

The Solana NFT shooter is adopting a dual-token model, with $NYN as the governance token and $CTNP as the utility token. What's so special about its tokenomics, though, is how it's designed to withstand market volatility. 

According to Nyan Heroes, while $NYN can be used for governance, staking, and payments for marketplace transactions, it can also be used to overcollateralize its in-game stable coin, $CTNP. 

Currently, $CTNP is pegged at $0.01 each, fully collateralized by the company's USDC reserves. Eventually, as their user base and in-game economy grow, the pegging mechanic will shift to an algorithmic model, collateralized by a basket of other assets, including the $NYN token. 

For instance, if the price of $CTNP is high relative to its peg, the algorithmic protocol will incentive the market to burn $NYN and mint $CTNP. If the price of $CTNP is lower than its peg, the protocol will incentivize the market to burn $CTNP and mint $NYN. According to Nyan, this algorithmic model uses efficient market forces to allow arbitrage traders to maintain $CTNP at its pegged value. 

$NYN has a fixed supply of 1,000,000,000 tokens, while $CTNP has an unlimited supply. As the primary reward token in the game, $CTNP has multiple use cases. To list, players can use $CTNP for gear upgrades, Guardian upgrades, consumables, Guardians and Weapons cosmetics, mint new characters and items, and more. 

It's worth noting that Nyan Heroes will drop a playable demo at the end of Q1 2023. Knowing how its tokenomics work will help players to understand the game better. 

Disclaimer: The information provided on this page do not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such. Individuals should do their own research before taking any actions related to the product they read about and carry full responsibility for their decisions.
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