Seraph (SERAPH) tokenomics

The token economics of Seraph, a blockchain-based Action Role-Playing Game (ARPG), centers around its native token, $SERAPH, which was launched during its Token Generation Event (TGE) on January 6, 2025. The token is designed to foster long-term engagement and support a player-driven economy by integrating directly into the game's core loops and reward systems.

Issuance Mechanism

The total supply of the $SERAPH token is 1 billion.

Prior to the TGE, an early mechanism for token eligibility involved Seraph Starry Journey Feathers, which players could acquire and later redeem for $SERAPH tokens at set rates based on rarity:

• 1 Starry Feather = 1 $SERAPH
• 1 Chaos Feather = 3 $SERAPH
• 1 Soul Feather = 10 $SERAPH

The TGE coincided with the launch of Genesis Season 1, establishing the foundation for the token's circulation and utility within the game ecosystem.

Allocation Mechanism

The total supply of 1 billion $SERAPH tokens is distributed across various stakeholders, with a significant emphasis on community incentives and rewards.

The primary allocation breakdown is as follows:

The Community Airdrops and Incentives allocation, representing over 40% of the total supply, is intended for rewards for existing NFT holders, active players, and ongoing incentive programs distributed each season through a "user interactives" system that quantifies player activities.

Specific distribution mechanisms employed during and after the TGE included:

• Airdrops: Holders of SOUL/SPP NFTs and Seraph Starry Journey (SSJ) NFTs received airdrops. For instance, SOUL and SPP holders were eligible for an airdrop of 48 million $SERAPH tokens, with the first batch of Season 1 distributing 12 million $SERAPH.
• In-Game Rewards: Tokens were distributed as rewards for various in-game activities, such as ladder rankings, Chaos Dungeon contributions, Secret Prison participation, and Soul Spar utilization.

Usage and Incentive Mechanism

$SERAPH is classified as a utility token designed to unlock features, craft items, and facilitate participation within the game. The token's utility is central to the game's economy and competitive play:

Core Utility of $SERAPH

• Equipment Enhancement: Used to reforge chaotic affixes for NFT Equipment each season and to reveal the attributes of NFT Equipment obtained through drops.
• Content Access: Facilitates participation in unique opportunities, such as Soul Spar and Equipment of Seraph NFT drops. It can also be used to unlock dungeon access, mint keys, and burn maps. Minting dungeon keys allows players to farm Soul Spars without requiring NFT Equipment.
• Governance: $SERAPH holders are expected to engage in future community governance activities, allowing players to influence aspects like new features, events, and the overall direction of the ecosystem.

In-Game Economy and Incentives

The game also features an off-chain currency, Soul Spars, which players earn by defeating monsters in the Void Realm dungeon while consuming the Chaos Energy of NFT Equipment. Soul Spars are used for:

• Entering the Mystery of Chaos dungeon, where "Equipment of Seraph" NFTs can drop.
• Equipment Crafting and enhancement.
• Buying and selling goods in the in-game marketplace.
• Participating in the Trial of Seraph competitive play, where top-ranking players are rewarded with exclusive prizes, often including $SERAPH. For example, Season 2 featured a prize pool of 50 BNB plus 6.1 million $SERAPH.

Locking Mechanism and Unlocking Time

Vesting schedules are in place for the Core Contributors and Investors to ensure long-term commitment and gradual token release.

• Core Contributors (18.00%): Subject to a one-year cliff, followed by linear monthly vesting over three years.
• Investors (6.42%): Subject to a one-year cliff, followed by linear monthly vesting over three years.
• Advisors: Subject to a six-month cliff, followed by linear monthly vesting over three and a half years.

In contrast, $SERAPH rewards distributed to asset holders (SOUL/SPP NFT holders) via airdrops generally have no lockup period, with withdrawal functionality available starting from the TGE date (January 6, 2025). Unclaimed tokens from reward pools, such as the Season 1 airdrop, revert to the Seraph game reward pool.