Mitigating $MUFFIN’s inflation

Presenting a solution to preserve the value of our tokens

It’s been a day since our launchpad via MM Exchange, and we’ve managed to oversub the sale of our MUFFIN tokens, which in the current bearish climate, is a sign of confidence that the gaming sector in Crypto can still be alive and thriving.

MMF Launchpad, 4 Sept

With the MUFFIN tokens going into everyone’s pockets, we’ve thought long and hard about how to avoid the death spiral that many projects fall into in the wake of further bearish news, whether from the US Federal Reserve or from any fallout in the Crypto space.

We’ve realised that on Cronos no matter how much buybacks are conducted (500k USD in total as of today), we are unable to outpace that with the emissions from yield farms that exists on our native dapp, more specifically, under our pool page.

This screams inflationary

Hence, the Croissant team is proposing a drastic, but sound decision that will preserve the value of our tokens, and keep the precious MUFFIN tokens in the hands of true users of our platform.

Solution: Rooting out inflationary yield farms

An inflationary token is one with an increasing number of tokens in circulation. Some of the common approaches for introducing new tokens through mining, staking, and other methods can help in increasing the circulating supply of tokens. The increasing supply of the token would cause a drop in its value.

With no new capital or new users, the demand for our tokens will be outpaced by the inflation, hereby deceasing the value of $CROISSANT and $MUFFIN tokens.

Where else can we get the tokens without buying from the open market?

We have already introduced play to win rewards where losing wagers are awarded with a certain amount of protocol tokens such as $CROISSANT and $MUFFIN. With the removal of yield farms that gives out $MUFFIN as rewards, the only way real way to get the tokens will be to play our games.

Currently, the hard cap for the MUFFIN contract is coded at 150m tokens, as denoted in the Gitbook. With the current supply of MUFFIN at 45m, the Croissant team will be minting out the additional 105m MUFFIN tokens to be used for:

  • 22.5m MUFFIN — Play to Earn rewards
  • 22.5m MUFFIN — Liquidity mining incentives with MM Exchange & to supplement Play to Earn rewards if required
  • Burn — 60m MUFFIN

This effectively hard caps MUFFIN at 90m lifetime max supply, far below 150m that we laid out at the start. No yield farms, no pools to inflate the supply further. The Croissant team is also not allocated any pre-minted MUFFINs, and there will never be any downward selling pressure on our end.

Where to farm yields then?

We have also stuck a deal with the MMF team to continue the MUFFIN-DSF farm on their farm page, as long as we provide a pool for their users to stake their MMF for MUFFIN. This is an evitable part of the farming cycle but this solidifies our long term partnership with a top tier DEX to provide exposure and a place for MUFFIN liquidity providers to continue earning MMF yields.

https://polymm.finance/farms

In short:

  • MUFFINs will only be minted for players who play our games
  • Securing MM Finance as a DEX to provide farming rewards for MUFFIN liquidity providers
  • end of inflationary yield farms that mints MUFFINs

We can safely say that $MUFFIN will immediately enter a deflationary phrase, with buybacks coming from casino profits at a ever increasing and constant pace, because we are confident that the rate of casino profits will outpace the inflation caused by the Play-To-Earn rewards. This way, even if the MUFFINs are sitting in your wallet, they will continually increase in price.

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