Make LAVA Great Again – The LAVA Economy Update
LAVA is the coin of the Elysium blockchain, powering all transactions and working alongside PYR as part of the Vulcan Forged dual token economy. As we look to the future, it’s time for us to reinforce the foundation of our ecosystem around three key goals as part of our LAVA economy update:
- Ensuring a balanced and sustainable economy for LAVA and PYR,
- Creating scarcity and driving demand for LAVA, and
- Increasing demand for PYR, which is the only token that generates LAVA.
With our ecosystem rapidly expanding, it’s crucial that we bring in as much value as we send out—ensuring a thriving circular economy. The new changes are designed to create consistent demand for both LAVA and PYR with minimal disruption to current users, while also providing ongoing incentives for new players to join the ecosystem. These adjustments are a critical step toward making LAVA great again by creating a constant flow of value into the system.
Let’s dive into the upcoming changes:
New Dedicated Team for Web 2.5 Games
We’re creating a dedicated team to focus on integrating Web 2.5 principles across all games outside of VulcanVerse. These games will remain Web 2, but owning NFTs of the Web 2 assets will allow holders to share in revenue from these games’ profits. This bridge between traditional gaming and blockchain rewards ensures that NFT holders benefit from the growing Web 2.5 ecosystem. This team will work closely with our VF GitHub and bring real value to our NFT holders.
LAVA Economy Update – LAVA Burn for Land Staking
To sustain the LAVA ecosystem, we are introducing a daily LAVA burn for land staking. This burn varies depending on the land level and is designed to align with user engagement while ensuring that higher-level lands contribute more to the overall system. Here’s the breakdown of the daily LAVA burn for each land level:
Level 2: 3 LAVA
Level 3: 9 LAVA
Level 4: 21 LAVA
Level 5: 40 LAVA
This LAVA will be deducted directly from land owners’ PYR staking rewards, with the PYR being converted to LAVA on the backend through our decentralized exchange, ElysiumSwap. This ensures that users can still participate in staking without manually managing LAVA tax payments.
Through implementation of this system, we create a circular economy that encourages LAVA use while limiting over-accumulation and ensuring long-term sustainability. Additionally, this burn encourages landholders to remain actively engaged with their assets and rewards those contributing more significantly to the ecosystem.
To learn more about VulcanVerse Land Staking, read this blog article.
Introduction of the Frenzy Pass
The Frenzy Pass is being introduced as a simple, low-cost feature that adds value across the entire ecosystem. For just 1 PYR per month, users gain access to earn LAVA through our games. This system ensures continued demand for PYR while rewarding players who are actively engaged with LAVA earnings.
What’s New:
- Guilds can pay the 1 PYR per month for their Cedalions, making it easier for everyone to participate in LAVA rewards.
- Anyone can pay for anyone. This feature allows a player to cover the Frenzy Pass for another user, encouraging guild support and further strengthening community ties.
- The Frenzy Pass separates casual players from those fully invested in the ecosystem, allowing us to differentiate between those who contribute to the circular economy and those who play purely for entertainment.
This system helps create a more engaged player base while also ensuring PYR is taken off the market, creating increased demand and long-term sustainability for the token. Those who have been around a while will note that this is a slight change to the original Frenzy Pass plans, but falls along the same lines – obtain a pass to earn LAVA!
LAVA Bank Cap
As part of our LAVA economy update, to maintain balance and prevent over-accumulation, we are introducing a LAVA Bank Cap. This cap has been calculated based on historical distribution data.
Read more about the LAVA Bank and LAVA Ledger NFTs here.
From March to August 2024, the LAVA Bank distributed an average of approximately 450k LAVA per month. To maintain balance and to prevent inflationary pressure on LAVA, we are capping the monthly LAVA distribution from the bank at 280,000 LAVA, translating to a daily pool of 9,333 LAVA. This will bring the total LAVA distributed in VulcanVerse, through the LAVA Bank and XP routes, to 1 million LAVA per month. At the current LAVA price, this new cap results in approximately $10,415 worth of LAVA distributed monthly.
By capping the LAVA distribution, we are reducing the overall LAVA supply entering the market, which will help protect its long-term value.
Elysium Pool & Strategic Buyback
We’re launching a strategic buyback of Elysium tokens, including PYR, LAVA, and tokens from projects launched through the Elysium Launchpad. This initiative will help bolster the Elysium Pool, which is designed to replace the complex node and forge staking systems with one streamlined staking pool.
This Elysium Pool will operate separately from the VulcanVerse PYR Pool, creating a simplified staking system for the broader community. By reducing the circulating supply of LAVA and PYR through buybacks, we can help maintain and boost the long-term value of these tokens.
We will expand on this further in the near future.
Moving Forward with Transparency
As we roll out these changes, we want to be clear and upfront with the community. Our goal is to ensure that everyone—whether new players or long-time holders—benefits from the value we are creating. Through further development of a balanced and sustainable economy, we’re ensuring that the future of LAVA and PYR is as dazzlingly bright as Vulcan’s forge itself.
As usual, we welcome feedback from the community and encourage you to participate in these exciting new developments!
You can view the Vulcan Forged whitepaper alongside the LAVA litepaper here.
Together, let’s make LAVA great again. Forge on!