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NEMO Platform and NEMO
NEMO Platform is a management and operation platform that automates the decentralized digital economy model. The core principle is to use automated tools & technologies to oversee the value of NEMO tokens.
First, NEMO value is pegged to the price of another asset, hence the term “stable”. Now, NEMO is valued at 0.1 USDT.
1 NEMO = 0.1$ (USTD)
NEMO Token is also a common co-use currency for all projects on NEMO Platform.
Figure 1: Comparison of the traditional Game model and the NEMO platform
Second, the NEMO Platform will have an automated operating mechanism:
- Project’s economy monitoring system
- Deflation/Inflation warning tool
- Deflation/Inflation automatic technology & governing fund
- Demand/Supply regulation system
Notice: When adding more projects to the NEMO Platform, the DAO will vote to decide whether to increase the supply of NEMO Platform's Governance Token or not.
Figure 2: NEMO Platform
NSF (NEMO Stability Facility) is a special purpose instrument designed to maintain the stability of NEMO exchange rate at all times and in a long-term and sustainable manner. NSF includes the number of NEMO Tokens issued in batches and the amount of USDT that the system obtains from NEMO sales via DEX/CEX. NSF aims to preserve the financial stability of NEMO system by managing the treasury and supporting stable NEMO buying/selling activities on anti-de-peg platforms, with a guarantee mechanism for both NEMO/USDT liquidity.
1. Issuance under a reserve limit.
NSF's reserve system (including both NEMO and USDT) calculates the amount of USDT to be the basis for new NEMO issuances. As general rules, the system is only allowed to do so within limited reserves. That limit is currently 20%, which means that for every 100 USDT deposited into NSF, the system can issue 800 NEMO (1 NEMO = 0.1 USDT) but 20 USDT must be kept as a reserve.
Out of 800 new NEMOs sold, 64 USDT can be converted into new issuance and 16 USDT will be kept as reserve etc. until the facility in the original NSF system generates 1,000 USDT new credits. If the reserve limit is relaxed to 5%, the credit will double, encouraging new loans for investment and consumption on the NEMO platform.
2. Quantity facilitation.
As NEMO interest rates are lowered, NSF must use special regulatory tools to regulate the market. Quantity facilitation means when NFT items are traded on the Marketplace, pumping more NEMO into the system, stimulating the price of the main asset, causing them to stop falling in value.
3. Negative interest rates
Another unique tool is the setting of a negative nominal interest rate. A Negative interest rate policy (NIRP) will come into effect when NEMO holders pay a fee, rather than receiving interest from holding NEMO. Thus, keeping NEMO becomes more expensive, users will be encouraged to use that NEMO to play games, buy NFT Items, and invest in GameFi#, DeFi# projects on the NEMO system.
1. Increasing the spending on NEMO System
Keynesian economists advocated the use of fiscal policies to boost general demand and pull the NEMO economy out of deflation. If Users and Holders stop spending, there is no incentive for studios to keep going. NSS will enter the market as a last resort in the hope of keeping a steady rhythm of rising production along with employment.
2. Short-term interest rate reduction
NSS can lower interest rates for staking activities in the short term. Short-term interest rates also affect long-term rates, so if the target rate is raised, long-term revenue, such as investments, also becomes more expensive when buying NFT items. Lower interest rates boost more NEMO buying and encourage new investment with cheaper NEMO. It also encourages individuals to purchase NFT Items by reducing the monthly cost.
3. Cut down on item exchange fees
If the system cuts down the item exchange fee, Users and Holders will have more income and wealth, which will make them gradually spread and spend more money. The danger of reducing fees is that the system has to cut down its reserve as a result of reduced revenue and profits. However, in the short term, it is also a regulatory tool to stimulate the system’s economy – which is the bottom line and meaning of NSF and NSS.
Fighting deflation is a little more difficult than inflation, NSS (NEMO Stimulation System) and NSF (NEMO Stability Facility) have a range of tools that can be used to stimulate demand and economic growth, and provide stable and long-lasting NEMO for all 3 targeted audiences:
The goal is to build a safe and sustainable system to bring more value to the community and society on the PWE (Play With Earn) platform - A revolution for the not too distant future.
Liquid pool: Used to provide initial liquidity for exchange platforms.
NSF pool: Used to maintain the stability of NEMO exchange rate at all times and in a long-term and sustainable manner.
Marketing: Used to invest in marketing activities to promote the project.
Reward: Bonus fund for in-game activities and projects.
When participating in in-game PvE, PvP, AvA activities, in addition to the main resources of the game that can be effectively used to build cities, players can also receive NEMO Tokens.
This is a critical material for Land owners and players. Since, they will need to use NEMO to upgrade LAND or city. The higher the level, the more NEMOs are required.
Moreover, NEMO Token is also a common co-use currency for all projects on NEMO Platform.