Firstly, I am impressed that most, if not all of the information are available on their pitchdeck and launchpad website.
Details: Total supply - 25M $ARTY 4.8% Private Sale, 3 month cliff with 12 month linear vesting 20% Presales (1&2), 9/6 months linear vesting (10% unlocked at TGE) 20% Liquidity & Listings, 20%, 12 months linear vesting (2% at TGE) 5.5% Team & Advisors, 12 month cliff with 36 month linear vesting 13.2% Marketing, 6 month cliff with 54 month linear vesting 1.5% Foundation, 6 month cliff with 54 months linear vesting 30% Staking & Farming, 1 month cliff with 35 month linear vesting 5% Treasury, 1 month cliff with 59 month liner vesting
What this means is that at TGE, there would be 2.4% of potential selling pressure, which translates to $180k at TGE price. This seems relatively small.
There is also a buyback and burn of $ARTY every quarter, using 20% of profits. I was initially wondering - what if they dont make any profits every quarter, does the burning not occur? However they have their revenue streams as follows:
- Advertising
- Event Ticket Sales
- NFT Sales (which comprises the large bulk for their revenue)
- In-game purchases of $ARTY
- NFT Trading
- $ARTY withdrawal fee
I am not very happy with the need for fees from withdrawing $ARTY, as it creates a sticking point in liquidity and creates a burden from gamers wanting to cash out some profits.
Lastly, I like that their token provides various utilitie apart from in-game rewards, such as DAO voting and staking. I would like it more if they have a separate token for governance, as I am a relatively big fan of dual token models - governance tokens being "earned" through interacting with the project, and thereby "earning your place at the table".
Overall, I feel... conflicted about their tokenomics and allocations. Whilst the vesting and cliff period looks healthy, allocations for liquidity, listings and marketing looks low relative to presale value (24.8%). Looking at the full token unlocks based on TGE price, there is pretty high selling pressure on the first 12 months (between $200-$400k). If we base them on the FDV of 7.5m, that would be 2-5% of selling pressure monthly for the first year that might not seem too good if the project ends up not working well. Show Less
