Shezmu’s Model Breakdown:

Starting off, Shezmu is launching with 10,000,000 total supply. Through a public presale round, there was 75 Ethereum contributed. This presale round functions to permit access to early adopters of the Shezmu protocol and founders of its surrounding community. Its recognized early adopters deserve recognition for their commitment and patience. Another benefit of this is the stabilization it provides upon launch. With less initial liquidity, the Shezmu token may experience unforeseen volatility as a consequence. As the team’s goal is to focus on long term thinking and participation within the community, avoiding initial liquidity issues and its following risks are a priority for the Shezmu team.
This 10,000,000 total supply is quite temporary though. The Shezmu Development Team acknowledges out of control inflation has been a major issue within similar projects. Approximately 95% of Shezmu’s supply will be burned immediately at launch. The goal is to mitigate the risk of hyperinflation in the long term. This is generally a consequence of overly aggressive token rewards without proper counterbalances to control the inflationary pressure said rewards create. This 95% burn leaves a total supply of 500,000 Shezmu in circulation.

Deflationary Tokenomics Versus Emissions:

From this initial burn, further deflationary pressure will continue from the Guardian NFT mints. For each Shezmu used within the minting of a Guardian NFT, 12 Shezmu will be burned and permanently leave the supply altogether. A major benefit of owning Guardians are their rewards. Rewards for Guardians are paid as a proportional fractional allowance of the Shezmu burned to mint it minus a Claim fee. For example, if 12 Shezmu are burned while creating Guardian NFTs, approximately .12 (.096 net after Claim Fee) Shezmu per Guardian will be rewarded daily. This equates to approximately 292.20% net APY at this reward rate. This APY will hold for the first 250,000 minted Guardian NFTs after which it will decrease to approximately 146.10% net APY by the first halving. After the first halving, the reward rate will be approximately .06 (.048 net after Claim Fee) Shezmu per Guardian daily.
The goal of gradually decreasing reward payouts is to avoid the common DAO (Decentralized Autonomous Organization) conundrum of overpromising rewards which ultimately kills the project. The key is striking a balance between rewarding early adopters and ensuring the project's sustainable growth. Paying such an overly high reward rate long term is unsustainable as the treasury inevitably would eventually lose control of the supply. The Shezmu Team strives to retain loyalty and trust from the community by taking all measures possible in the quest of solving the DAO issue. This task is assigned to the Shezmu Treasury. To fund the Treasury’s actions, approximately 20% of all rewards claims will go directly to the Treasury Wallet. This will assure the Treasury always has the proper liquidity to dictate desired fiscal policy on the Protocol. The long term strategy of the Shezmu Treasury is based on the following. As every time the cap of Guardians doubles, the emitted rewards on the Protocol will be cut in half.