Stars The Token!

Course Content
What are NFTs?
Non-Fungible Tokens (NFTs) have emerged as a transformative force in the world of digital assets, blockchain technology, and the broader creative economy. These unique and indivisible tokens have redefined ownership, authenticity, and provenance in the digital realm. Here's a concise summary of what NFTs are. Definition: NFTs are digital tokens that represent ownership or proof of authenticity of a unique, non-interchangeable digital or physical asset, often stored on a blockchain.
0/3
Introduction to the Cosmos Network
The Cosmos Network, often referred to simply as Cosmos, is a groundbreaking blockchain project designed to address key challenges in the world of decentralized technologies. Launched by Tendermint Inc. and co-founded by Jae Kwon, Cosmos introduces a novel approach to blockchain interoperability, scalability, and usability. Here, we will delve into the fundamental aspects of the Cosmos Network, its goals, architecture, and significance in the blockchain space
0/3
Navigating the Stargaze Platform
By the end of this lesson, learners should be able to navigate the Stargaze platform, understand its interface, and perform basic operations like minting, listing, and purchasing NFTs. 1. Introduction to the Stargaze User Interface: Provide a visual tour of the platform. Highlighting: Dashboard Profile settings Wallet integration 2. Minting NFTs on Stargaze: A step-by-step guide on how creators can tokenize their work. Pre-requisites for minting Uploading the digital asset (artwork, collectible, etc.) Setting attributes, descriptions, and metadata Defining royalty structures Finalizing and minting the NFT 3. Listing and Selling NFTs: Instructions on how to make NFTs available for purchase or auction. Setting the price (fixed or auction-style) Time duration for auctions Promoting NFT listings Understanding transaction fees and final proceeds 4. Discovering and Purchasing NFTs: A guide for collectors and enthusiasts. Searching and filtering NFT listings Evaluating NFT details (ownership history, creator profile, etc.) Making a purchase or placing a bid Securing and managing purchased NFTs in one's wallet 5. Engaging with the Community: Highlighting the community features of Stargaze. Participating in discussions and forums Voting on platform proposals and governance issues Supporting and following favorite creators Summary: Reiterate the importance of understanding the Stargaze platform's mechanics. Emphasize that whether one is a creator or collector, mastering the platform can lead to a more rewarding experience in the NFT space.
0/5
The Economy of Stargaze
Stargaze, as an NFT platform operating on the Cosmos network, plays a pivotal role in the rapidly evolving digital art and collectibles industry. Like other blockchain-based platforms, Stargaze's economy is likely a blend of its native tokens, the NFT assets it hosts, and the interactions between creators, collectors, and traders. The economy of Stargaze, while rooted in the principles of blockchain and NFTs, has its unique characteristics shaped by its community, governance model, and its position within the Cosmos network. As the NFT landscape grows, understanding the intricacies of individual platform economies becomes essential for both creators and collectors. Lets dive in to the ecosystem.
0/2
Stargaze The Number 1 NFTs Platform On The Cosmos Network
About Lesson

Stars The Token

Tokenomics

The Stargaze team had a unique airdrop and tokenomics model. First, the token model is based on high inflation early on, and then it rapidly decreases. It has a max supply of 4 billion STARS and started with 1 Billion created at launch.

For Stargaze’s original token release it followed this model:

  • 21.5% went to the foundation to support the protocol, grants, and onboarding projects.
  • 20% went to the community pool. This pool can enable community feedback and funded projects and be used for incentives discussed later.
  • 25% was airdropped to the Cosmos community with requirements to fundamentally get comfortable with the ecosystem, such as doing an NFT mint, staking, voting on a proposal, and buying an NFT. This, like other airdrops, was used to bootstrap the network’s security and attract a community of users.
  • 16% went to the seed investors. These are on a lockup period.
  • 10% to founders. These are on a lockup period.

Stargaze also excluded exchange validators from the airdrop to help decentralize the holders. As new tokens are released, it should drive further decentralization or community ownership. The release schedule is the following:

  • 45% to NFT incentives. These incentives are for people actively buying and selling NFTs. Today this goes to the community pool though until new features are released.
  • 35% to stakers. These are the individuals helping secure the network in exchange for a lockup period.
  • 15% to the developer incentives. This is for continued funding of long-term goals.
  • 5% to the community pool. This can be used for various community driven initiatives.

These tokenomics work to decentralize the network with time. It also attempts to put the future of the ecosystem in the hands of the users. Unfortunately, this is not true of many NFT exchanges.

The incentive for NFT traders could be a critical part of the ecosystem. Given the highest inflation portion to those who actively not passively use the platform is an interesting experiment. This pushes the platform’s most active users to care about the success and even help improve the ecosystem instead of just trade.

Stargaze’s inflation model also allows investors who like their platform to buy STARS and create a self-funding NFT collection using their inflation/transaction payments to buy NFTs.

Stargaze’s Deflationary Mechanism: Introducing “FairBurns”

Stargaze has implemented an innovative mechanism called “FairBurns” to provide long-term deflationary pressure and rewards for stakers. Here’s how it works:

  • Fee Distribution: All fees within Stargaze undergo the FairBurn process. Half of these fees are distributed to stakers, and the other half is permanently burned. For instance, a 1,000 STARS creation fee would see 500 STARS burned and 500 STARS awarded to stakers. Similarly, whitelist contracts, priced between 100 to 400 STARS, follow this 50/50 model.

  • NFT Minting: New NFT creations are subjected to a 10% protocol fee. Of this, half is burned and half goes to stakers.

  • Marketplace Volume: A significant portion of NFT volume originates from marketplace transactions rather than the initial minting. Recognizing this, Stargaze applies a 2% fee on marketplace trades, divided equally between burning and staking rewards. This FairBurn mechanism on the marketplace offers considerable long-term burning potential for Stargaze, simultaneously ensuring rewards for stakers.

As of September 27, 2023, over a span of 567 days, Stargaze has proactively burned a significant 12,635,538 STARS, representing a financial value of $575,816.51. This burn is a testament to the platform’s earnest commitment to its economic principles and mechanisms.

Looking ahead, STARS possesses the potential to transition into a deflationary asset if the volume of transactions in buying and selling surpasses the projected inflation rates. By the conclusion of its fourth year, the anticipated inflation rate stands at 296 million STARS. However, should there be an approximate exchange of 30 billion STARS within the marketplace, not accounting for the new mints that inherently have a higher burn rate, we could see the inflation rate for STARS neutralizing to a standstill at 0%. This scenario translates to a trading volume nearing 630 million USD based on current market valuations. Even in the face of this zero-inflation scenario, it’s noteworthy that stakers stand to gain a lucrative 25% in staking rewards.

However, it’s essential to note that these projections are based on historic averages. Using this approach, STARS might not exhibit deflationary characteristics until its 13th year. But this doesn’t diminish the potential profitability of staking. Furthermore, the value of STARS may fluctuate with inflation, impacting collection pricing in USD. As trade volumes increase, more STARS could be burned. Additionally, Stargaze might introduce services in the future to further enhance the burning mechanism.

Utility & Functionality:

  • Native Currency: STARS acts as the primary medium of exchange within the platform, used for transactions like minting NFTs, purchasing, or participating in auctions. Soon you will be able to mint and purchase Nfts with other cosmos tokens, but the main one is stars. Auctions might be a significant aspect of the platform, where rare or highly sought-after NFTs are sold to the highest bidder. Participants would place bids using STARS, showcasing its utility in determining the value of unique assets.

  • Staking: Users might be able to stake their STARS tokens to earn rewards, support the network’s security, and participate in the platform’s growth.

  • Governance

    • Voting and Governance: In decentralized platforms, token holders often have a say in the direction and decisions of the platform. STARS could be used to represent voting power, with significant stakeholders having a more considerable say in governance matters.

    • Staking Rewards: Users might lock up or “stake” their STARS to support network operations, earning rewards in the process. This not only secures the network but also provides a passive income opportunity for token holders.

Economic Significance:

  • Value Representation: The value or price of STARS would likely reflect the overall health, activity, and trust in the platform. As more users join and the platform grows, the demand for STARS could increase, potentially influencing its market value.

  • Inflation and Deflation: As discussed previously, mechanisms like “FairBurns” could directly affect the supply of STARS, leading to potential deflationary scenarios, which in turn could impact its economic significance and value proposition.

Inter-platform Operations:

  • Cross-Platform Utility: Given the interoperable nature of blockchain networks, STARS could also be used in collaborations with other platforms, extending its utility beyond just the native ecosystem.
Join the conversation
Bookmark
0