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Crabada: Understanding its Tokenomics

Posted July 6, 2022 12:56 pm
5 min
By Leo Almeida

The crypto industry is the epicenter of extreme hype cycles. Ever since we had the immaculate conception of Bitcoin in 2008, we’ve seen crypto go through euphoric boom cycles followed by soul-crushing bust cycles, as is the case for Crabada.

Consequently, this most recent bull market was no different. We witnessed projects catapulted from obscurity to billions of dollars in market cap in a matter of days, only to come crashing down a few months later. Many investors pumped up prices simply based on optimism and greed rather than fundamental research. Indeed, fundamentals in a bull market are not even an afterthought. 

However, now that we have firmly entered a bear market, a project’s fundamentals are much more important. So what do we mean when we say fundamentals? A big part of that term lies in the tokenomics of a project.

Learn: Tokenomics is a catch-all for the elements that make a particular crypto project valuable and interesting for investors. This includes everything from the token’s supply, how it’s issued, and its distribution.

As part of our game guide series, we’re digging into Crabada’s tokenomics and in-game assets. 

Tokens and Assets

In Crabada there are two types of tokens, Crabada, $CRA, and Treasure Under Sea $TUS

Crabada NFTs

You can purchase a Crabada NFTs either by buying it in the marketplace or by breeding it. Using them allows you to play games to earn both cryptocurrencies $CRA and $TUS.

Learn: Breeding is a term used in the crypto gaming space referencing the use of two NFTs as well as a paid  fee to create a third NFT that has similarities to the ones previously used. Usually, a Breeding count on NFTs exists, which shows how many times that particular NFT participated in breeding; the higher the breed count, the higher the fee for breeding becomes.

$CRA

$CRA is a governance token awarded to players when staking. Previously, $CRA was rewarded during an incentive period for Idle Game and Battle Game. However, that incentive period has ended.

$TUS

$TUS is the in-game currency earned when playing the game in the form of Mining, Looting, and Lending Crabs through the Tavern. 

Additionally, $TUS can be used to buy Crabs.

Special Breeding Event

As part of Crabada’s inception, the team held a Special Breeding Event which created the initial supply of 5,640 Origin Crabada using Breeding Coins that were airdropped to early investors in the project. This helped kick-start the population by gifting crabs to early adopters. 

Token Distribution

There is a total supply of 1 billion CRA, distributed as shown above:

  • 6% was sold in a Private Round, it has a vest of 1 year, with a 3 month cliff, followed by a quarterly release. 
  • 6% was dedicated to the Community Bootstrap event which allowed players to trade USDC to CRA.
  • 20% is used for the Ecosystem Fund, which is used to help the development of Crabada, such as covering employee salaries, while 50% is unlocked from the start, and the other 50% after the first year.
  • 30% is dedicated to the Play-and-earn rewards.
  • 13% is on the Staking Rewards, divided between CRA stakers.
  • 3% are used to pay Advisors, which have a 2-year vest, with a 6 month cliff, followed by a quarterly release.
  • 5% is used on liquidity to ensure the token is liquid, facilitating players to trade the token.
  • 17% is allocated for the team, with a 2-year vest, with a 6 month cliff, followed by a quarterly release.

Learn: Vesting is the process of gaining full legal rights to something. In this case we are referring to token vesting. Cliff vesting is when an individual earns the rights to an amount of tokens on a specific date, rather than over a period of time. 

Play-and-Earn Distribution

Of the 300 million $CRA dedicated to the Play-and-Earn pool, different amounts are allocated across three games: Idle Game, Battle Game and Farm Game. 

The original plan was to reward players with $CRA tokens via an incentive period of three months for each game. However, because of market conditions the team is restructuring how to allocate $CRA rewards. More details will be coming in the following months.   

The tokenomics of a crypto project are like the fine print of a contract; and the devil is in the details. To find out more about Crabada’s tokenomics you can read the whitepaper or access our analytics tools for real-time data.      

Before You Go…

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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.