🔑Tokenomics

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 10 Shezmu are burned while creating Guardian NFTs, approximately .1 (.07 net after Claim Fee paid in ETH) Shezmu per Guardian will be rewarded daily. The initial rate was held for the first 150,000 minted. Since the first halving, the reward rate has been approximately .05 (.035 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 30% of all rewards claims in ETH 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 via buybacks and funding project operations. The long term strategy of the Shezmu Treasury is to assure the ability to run operations and subsidize future additions to the ecosystem.