Algorand Casino uses a digital asset called Chips. 1 Billion Chips have been created. 100 Million of these CHIPs have been locked away into the CEO wallet (3LDFG6J4DVZLL3W4AFXQOTGONGUCC4654MFOYWYJ4ZQNITQ7HKVKZF7UDU). The original tokenomics stated that this wallet would be locked until November 2022. This will now be extended to November 2025 or in the event that that Algorand Casino is sold this wallet shall be locked until 1 year after completion of the sale.
Token distribution shall be managed to reward for liquidity provision. Holders of Tinyman LP tokens shall receive up to 10 CHIPs per token per day. There is a daily limit on this distribution of 150,000 CHIPs per day. Once this limit is reached the CHIP per token reward will be reduced to maintain a daily distribution of less than or equal to 150,000 CHIPs. This distribution is funded by the reserve account. There are enough CHIPs in the reserve account to maintain this distribution until 1st November 2031.
More people lose at the casino than win due to the house edge in all games. There is a staking program were holders of CHIPs can share in the casino profits. The casino will always keep 50% of all profits made during profit sharing periods. The remaining 50% will be distributed between stakers.
We also have an NFT strategy that is designed to give us an additional revenue stream in Algos. Each NFT minted and released by us will come with a 10% Royalty attached. This means that any resales will result in gathering 10% of the purchase price. Over time we expect the NFT market to generate a significant secondary income for Algorand Casino. All NFTs launched by Algorand Casino will have some utility attached. Any distributions shall be funded by profits from the casino.
Dilution of the reserve wallet has begun since April 2022. In April 2022.
Dilution during 2023/2024 = 2,500,000 Chips per month
Dilution during 2025/2026 = 2,000,000 Chips per month
Dilution during 2027/2028 = 1,750,000 Chips per month
Dilution during 2029/2030 = 1,500,000 Chips per month
Dilution from January 2031 – August 2031 = 1,400,000 Chips per month
Dilution on September 2031 = 1,300,000 Chips
Dilution on 31st October 2031 = 1,290,170.6 Chips
This will leave the reserve wallet empty.
Dilution from the reserve wallet to the dilution wallet makes those Chips available for the business to spend. This is where our 50% of casino profits are also sent. These Chips will be swapped slowly for other ASAs or Algos. They can be used for giveaways and contests, they can cover any casino or sportsbook losses. These chips can also be used as a way to help fund projects that want to start up using the Chips token. Late 2024 we will ask projects to apply in order to use Chips in innovative ways.
All airdrops of Chips have been completed. Distribution is well underway with around 20% of supply now in public wallets. We are 1 year into our 10 year plan to decentralise Chips.