What happens when all of Lord Coins is burnt?
As was described in Lordmancer II white paper, we will burn one tenth of Lord Coin (LC) involved in every in-game trade.
This feature was introduced on purpose, in order to constantly decrease the amount of LCs available and to create artificial deflation, ultimately leading to constant growth of remaining tokens’ value.
Prices in the game will be constantly decreasing. For example, a sword that would cost 100 LC in the first year of game’s life, would cost 0,1 LC or 0,04 LC in the third year. The value of tokens held by our investors will be growing accordingly.
Burning of tokens is not a problem in itself, as we have 18 decimals in LC. We will introduce smaller values. Take Bitcoin and Satoshi as an example. However, we’ll eventually run out of 18 decimals, too. We don’t know when exactly it will happen. It will depend on how quickly the game becomes popular and what will be the turnover of in-game goods.
We’re often asked what happens when we’re finally out of decimals. Here’s the answer.
We will introduce another token. Let’s call it LC2 for now. We will issue 20.000.000 of LC2 tokens and register the new token on crypto exchanges. Then, we will announce the date on which the following events will happen:
- LC holders will receive for free as many LC2 tokens as was their LC share in the remaining amount of unburnt LC tokens. This way, their value is completely preserved.
- In Lordmancer II, LC2 will completely replace LC.
- LC will be pulled out from exchanges.
Please refer to the picture below. Consider Peter, a token holder, who has 10 LC out of 100.000 remaining. He will receive 2000 LC2 (10/100.000 of 20.000.000).
