April 25, 2023
Zero-fee betting through a deflationary token is a powerful and valuable utility to a disciplined and well capitalized gambler. And DGTX holders who don't want to actively gamble can instead be DGTX Liquidity Providers who deposit their tokens into the house bankroll smart contract to earn a passive income by acting as the House and being the counterparty to all bets.
For gamblers to be willing to use the DGTX token, and for LPs to be willing to hold DGTX for a long period of time, it must have strong tokenomics that ensure constant upward price pressure. After all, there's no point avoiding fees on winnings or earning passive income if the overall value of your tokens is dropping.
So the very first principle of DGTX tokenomics is that the maximum total supply of DGTX is fixed and it's impossible to mint any more DGTX ever again for any reason. The DGTX minting keys have been burned, and the admin keys to the DGTX token smart contract have also been burned to prevent being able to create a new minter role in the future. DGTX is now officially an ownerless, independent smart contract under nobody's control. This caps the maximum total supply of the DGTX token at 9.2 billion tokens, all of which is currently in circulation.
We will create ongoing and constant upward price pressure on DGTX by using some of the fees collected on USDC winnings to systematically buy back DGTX tokens from Uniswap on a daily basis. Half of those DGTX tokens will be deposited into the house bankroll smart contract and the other half will be burned. This will be a fully automated system administered by a dedicated smart contract built and deployed for just this purpose.
1% of every USDC denominated payout will be sent to this automated DGTX buyback smart contract which at a random time every day will send its total balance to the DGTX/USDC market on Polygon Uniswap to buy DGTX at market price. Half of the DGTX tokens bought in this manner will automatically be deposited into the DGTX house bankroll smart contract as liquidity for gamblers to bet against. The other half of those tokens will be bridged back to the Ethereum blockchain and then burned.
There are multiple benefits of this automated DGTX buyback system:
1. The circulating supply of DGTX will be systematically reduced on a daily basis.
2. The balance of the DGTX house bankroll smart contract will be systematically increased on a daily basis.
3. The total supply of DGTX will be systematically reduced on a daily basis through token burning.
The benefits of a reduced circulating and total supply are obvious and will make the token more scarce and more valuable. And by placing those tokens into the DGTX house bankroll smart contract its a double whammy because that increases the token's fundamental utility as a vehicle for placing bets. The bigger the bankroll, the bigger maximum bet size and the more attractive Digitex becomes to high rollers.
The combination of a constantly decreasing supply, provably fair games, great UX, gasless betting, one-click bet submission, easy email-only onboarding for new users, no house edge, guaranteed payouts and highly entertaining games will make the DGTX token a scarce asset that's in demand from gamblers, DeFi enthusiasts and speculators alike.
ABOUT THE AUTHOR
HMFIC at Digitex
I'm the lead developer at Digitex Games, peer-to-peer and non-custodial betting games on the Polygon blockchain where every bet you place is an immutable on-chain transaction.
Our provably fair games with guaranteed payouts will be the most entertaining betting games you've ever played. And if you bet with DGTX tokens, there's no house edge of any kind working against you.
And on the subject of betting - don't bet against the guy who just keeps showing up :)