Recently, some tokens have started to stir, such as ZENT, which has risen nearly three times from its low. The reason for focusing on ZENT is more due to the buyback and burn plan announced by the official in the token economics. So what is the use of this economic mechanism? Let's take a look.
🎈 Project Introduction: ZENT
In every bull market, the gaming sector is an essential driving force. Zentry, as the star project transformed from the three major blockchain game guilds GuildFi, has been making strides in the metaverse game ecosystem, including player-facing game programs, IPs, infrastructure, and more. Recently, it also began collaborating with the famous game Layer2 Ronin to launch an MMORPG type game called Ragnarok Landverse.
📌 Token Economics
Of course, the market is most concerned about ZENT's performance. The design of ZENT's token economics is very sophisticated, adopting a dual value capture method to empower the token. ZENT has both economic value and practical value. Economic value is reflected in the fact that ZENT can be staked to earn returns, and it can even be restaked, as well as the buyback mechanism we will discuss later. Practical value is reflected in the fact that ZENT is also a form of game currency that is required for interactions within the Zentry ecosystem.
✅ Role of the Treasury
In addition, the core role in the ZENT token mechanism is played by the Zentry Treasury. On one hand, the Zentry Treasury rewards users through airdropped tokens and NFTs; on the other hand, the treasury will use the profits gained by Zentry to buy back or burn ZENT tokens. In the short term, the buyback of ZENT tokens will directly subsidize players, benefiting loyal users. In the long term, these burned tokens will be permanently removed from circulation, benefiting the long-term price increase of the token.
Thus, the positive flywheel starts to turn. The more players there are, the higher the platform revenue, the more tokens are bought back and burned, and the higher the ZENT price will be, attracting even more players, and so on.
The US stock market has explored a path to growth through buybacks and burns, and a similar history will undoubtedly repeat in cryptocurrency.