$SHELL Tokenomics
The scarce governance-token of Clam Island.
Last updated
The scarce governance-token of Clam Island.
Last updated
As explained, $SHELL is the governance token of Clam Island. It is scarce by design and can not be farmed in the Clam Island Bank (yieldfarm). In future holder of $SHELL will have the voting rights to make decisions on the development of Clam Island and in which direction the project should navigate.
The supply of $SHELL at launch on 30 September 2021 was 2,000. The only way the supply of $SHELL increases is by burning Clam NFTs to harvest them for $SHELL. This way $SHELL is a very scarce token and tightly linked to Clam NFTs as the amount of Clam NFTs available for minting every week is limited. This means that after 1 year approximately between 70,000 and 121,000 $SHELL will be available, depending on how many Clams are purchased and harvested. Let's have a look at the link between Clam NFTs and $SHELL.
Every Clam can be burned and harvested for 1 $SHELL 48 hours after the Clam has been minted. Yes, harvesting a Clam for $SHELL will burn the Clam. Though with every Pearl a Clam produces, the Clam can be harvested for 0.1 extra $SHELL.
1 Clam
1 $SHELL
48 hours after Clam mint
1 Clam gets
for every Pearl produced
+ 0.1 extra $SHELL
8-72 hours (Pearl production time)
After last Pearl is produced
0 $SHELL
Every Clam NFT can be harvested for 1 $SHELL, but only 48 hours after minting the Clam NFT. With every Pearl NFT produced by a Clam, the amount of $SHELL that can be harvest increases by 0.1 $SHELL.
Every week there is a certain number of Clam NFTs available for minting. In the first week there are 2500 Clam NFTs available for minting. This number decreases every week by 50, until there are only 500 Clam NFTs left. As the supply of $SHELL increases only when Clam NFTs get burned and harvested for $SHELL and the supply of Clams is limited each week, $SHELL is a very scarce token.
Depending on how many Clams are bought each week and how many Pearls are produced (the harvestable amount of $SHELL increases by 0.1 $SHELL with every Pearl produced), this is how the $SHELL token inflation schedule looks like:
The governance token holders can participate in decision making for the platform.
A lot of projects also like to use governance tokens as the reward token. This results in high inflation. $SHELL can be staked for rewards, but the rewards do not inflate $SHELL. So it actually already has an advantage over many other projects' governance tokens.
$SHELL can be staked for rewards, but the rewards do not inflate $SHELL. $SHELL can be staked in a single-token-pool or in an LP-pool in the yield farms to farm $GEM.
If every Clam NFT would be bought that is available within the calendar year, and the owner farms their Clam NFT for all the available pearls (except the very last one) and then harvests & burns the Clam for $SHELL then the total $SHELL circulating will be 121,690 $SHELL.
If every CLAM NFT in bought that is available within the calendar year, and the owner farms immediately harvests "Burns" for SHELL (prior to producing any $SHELL) then the total $SHELL circulating will be 69,940 $SHELL.
