Economic Model
The sustainable economic framework behind GOCHI
GOCHI’s economic model is designed for long-term sustainability, balancing player rewards with ecosystem health through a carefully structured tax system and token utility.
Tax Structure
The foundation of GOCHI’s economic model is the 8% transaction tax applied to all $TOKEN token purchases and sales:
5% to Rewards
Directly funds the SOL rewards distributed to active players through the hourly reward system.
2% to Liquidity
Automatically enhances market stability by adding to liquidity pools, reducing slippage and price impact.
1% to Development
Supports ongoing platform improvements, marketing initiatives, and operational costs.
This tax structure creates a self-sustaining ecosystem where player activities directly fund rewards, while ensuring sufficient resources for platform growth and market stability.
Sustainability Mechanics
Several mechanisms work together to ensure GOCHI’s economic sustainability:
Volume Requirements
The sustainability of GOCHI’s reward system depends on maintaining healthy trading volume:
| Daily Volume | Daily Rewards | Monthly Rewards | Sustainability Assessment |
|---|---|---|---|
| $1M | $50,000 | $1.5M | Minimal viable operation |
| $5M | $250,000 | $7.5M | Target healthy ecosystem |
| $10M+ | $500,000+ | $15M+ | Thriving ecosystem |
For long-term sustainability, minimum daily volume should be at least 20× the daily reward distribution. This ensures sufficient funding for rewards while maintaining market liquidity and development resources.
Economic Phases
GOCHI’s economy is designed to evolve through several phases:
Launch Phase (Months 1-3)
- Initial token distribution through points conversion
- High early trading volume and volatility
- Generous initial rewards to drive adoption
- Focus on building user base and engagement
Growth Phase (Months 4-9)
- Stabilizing token price with increasing utility
- Expanding player base with more distributed token holdings
- Normalized reward distribution as player base grows
- Introduction of additional utility features
Maturity Phase (Month 10+)
- Stable, sustainable economy with predictable rewards
- Balanced token distribution across player segments
- Deep liquidity and reduced price volatility
- Community governance beginning to play larger role
Token Velocity Management
Managing token velocity (how quickly tokens change hands) is crucial for long-term economic health:
Velocity Reduction
- Holding multiplier incentivizes keeping tokens rather than trading
- Pet creation burns create permanent supply reduction
- Vesting schedules for team and advisor tokens prevent early selling
Healthy Circulation
- Premium features encourage some token utilization
- Trading activity generates tax revenue for rewards
- Balanced approach allows for both holding and utility
Risk Management
GOCHI’s economic model differs from many blockchain games by rewarding in SOL rather than the native token. This reduces sell pressure on $TOKEN while providing immediate, tangible value to players in an established cryptocurrency.