# Tokenomics ## Strategy 1 The main strategy to keep the token valuable depends on the staking mechanism which will prove $ETH rewards for $SKOOMA staking.

Gamified Staking

**How?** Every time someone sells Skooma, there is going to be a 6.9% taxation which will be taken in ETH and sent to the developer address. Majority of ETH will be put in the staking pool and the rest will be spent to pay influencers to promote the project. There will not be a tax on buys in order not to (1) discourage buyers with high gas fee (2) reduce the ETH entering the LP. In short, we will be cutting ETH from people who wants to exit their position and use it to lock up SKOOMA tokens in staking which will reduce the sell pressure. **Is this a smart strategy?** There is no way to know since it will be experimental but it makes perfect sense on paper. Since the staking rewards are in ETH, it will become much more desirable to stake your tokens if the token price takes a fall. Here is how: Imagine the staking pool will distribute $10,000 worth of ETH and users staked $10,000 worth SKOOMA, this would translate to 100% returns. If the token price falls by 50%, the amount of rewards will not change, but the SKOOMA value in the pool will drop to $5,000; thus, the pool will now have 200% return. This strategy should create a renewed interest for the token in moments of uncertainty. ## Strategy 2 We will be playing mystery card keep people second guessing what is next. Staking will start after a 6 hour countdown of the LP creation. This countdown will be shown on the website as Phase 1. Early stakers will have great amount of rewards due to new pool with a lot of ETH that accumulated from taxation. Next steps will create curiosity and speculation and people will have something to hold on to their tokens. ## Strategy 3 We will use reward and punishment method. People who believe in the protocol will get surprise gifts. Phase 2 will involve airdrops (probably on Polygon) of NFTs as the ingredients of Skooma. These airdrops will be sent to people who are staking their tokens. We will hint that something is coming but we will not reveal it to keep the mystery card available. People who stake more and longer durations will get better rewards. ## Strategy 4 Release an NFT collection (Skooma Punks) when the community is big enough. The collection will require using the ingredients we previously airdropped. Royalties will be channelled into the staking pool to increase the amount of tokens out of circulation. * Disclaimer: These phases will only be unlocked and implemented as long as the project keeps growing. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://skoomas-organization.gitbook.io/skooma-heads/tokenomics.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.