The KOTO Token
Learn more about Nozomi's native engagement currency – KOTO.
KOTO, an on-chain engagement currency, plays a vital role in the World of Nozomi, where it can be spent on various activities and items. Unlike traditional currencies, KOTO cannot be purchased on the open market. Instead, it is earned exclusively through active involvement in the Studio Mirai community. This engagement includes interacting with fellow community members on Discord, participating in events and giveaways, minting Studio Mirai NFTs, and more.
Notably, KOTO transfers are limited to residents of Nozomi, further emphasizing its unique role within the community. Set to launch in July 2023, KOTO will operate on the Sui blockchain, providing an innovative and dynamic currency for the World of Nozomi.
KOTO is very different from the traditional "NFT project token", so here are a few reasons why we decided to go this route:
Many NFT projects issue tokens that are freely tradable on AMMs and rely on community members to provide liquidity (e.g. NFT_TOKEN/USDC) in a pool where the quote token is typically a liquid cryptocurrency such as USDC, USDT, ETH, etc. We believe this is a toxic model for a few reasons.
- 1.Most NFT projects are not able to attract liquidity from outside the community (this is most likely because supporting a fungible tradable token is not a primary value proposition of an NFT project). This means the LP for an NFT project's token will usually be comprised of the community's own funds – the same community who already spent money purchasing NFTs. This leads to an economic model where community members provide liquidity to each other, and then pump/dump on each other.
- 2.Issuing a tradable token puts a price on community members' attention. In other words, the token subsidizes the attention of community members by bribing them with a token that can (in theory, but not always practically) be swapped for a liquid asset like USDC or ETH. We believe denominating the community's attention in an illiquid token is disrespectful. It also increases "noise" in the sense that it becomes hard to tell whether the community is here to farm the token and extract value from others, or if they're actually excited about the project.