Playful On-chain IOUs: Insrt | TKX Weekly

TKX CAPITAL
4 min readNov 2, 2023

by @Guaaronnnn
editor @uuwagyuu
sponsor TKX CAPITAL

In the blockchain world, transparency is key. Insrt introduces a platform where users can create and win on-chain IOUs (I Owe You — a digital acknowledgement of debt on the blockchain), making digital interactions more tangible. With its new product — Perpetual Mints — Insrt simplifies and secures the process of creating and winning these on-chain IOUs. Today, we will explore Insrt and its innovative approach to blockchain interactions through Perpetual Mints.

Introduction

Insrt’s fresh dApp, Perpetual Mints, tackles the challenge of typical retail users often missing out on valuable opportunities in speculative on-chain ventures. It brings an inventive fix by offering a shot at moonshot rewards through what’s coined as real-time probabilistic auctions. Each user engagement on the platform earns them $MINT tokens, creating a cycle of value with every interaction. This strategy not only broadens the winning horizon but also syncs the interests of all participants, adding a layer of excitement and benefit for the entire community.

Depositor & User

The Minting Process and Rewards

Perpetual Mints offers a unique proposition where users always gain something with every minting attempt. When a user mints, they are awarded $MINT tokens, with the amount received depending on the rarity tier they land on. The goal is to keep users engaged and rewarded, whether or not they snag the main prize they were eyeing.

Minting process

$MINT Tokenomics

The backbone of this rewarding mechanism is the $MINT token, a rebase token whose mechanics are driven by the activity of bidders. $MINT tokens are minted whenever a minting attempt doesn’t result in winning the main reward. A portion of the ETH from minting fees backs the $MINT token, which is non-tradable outside the Perpetual Mints ecosystem but accrues benefits for its holders within.

One of the key aspects of the $MINT token is its stable exchange rate. Each $MINT token has a fixed exchange rate of 1,000,000 $MINT to 1 ETH, which is used to determine the amount of $MINT to distribute and also influences various $MINT use cases such as redeeming $MINT for ETH.

Holding $MINT tokens isn’t just a passive activity; it’s a rewarding one. As more people mint, 10% of all minted $MINT tokens are distributed to existing $MINT holders based on their share. Moreover, burning $MINT to redeem ETH applies a premium, leaving more ETH for the remaining $MINT holders. The system is designed to increase your $MINT balance as more people use Perpetual Mints. Even spending $MINT tokens for minting burns them, further benefiting the community.

There are five tiers of $MINT rewards, namely Common, Uncommon, Rare, Epic, and Legendary, each with varying chances and reward multipliers. The number of $MINT tokens minted in each attempt is probabilistically determined using Chainlink VRF, adding a fair chance mechanism to the reward system.

$MINT flow chart

Thoughts

The $MINT token system in Perpetual Mints is smart because it gives you something back even if you don’t win the big prize, which makes losing feel less bad. It’s like a small pat on the back saying “it’s okay, try again.” The more people play, the more everyone gets a little something extra. This idea keeps people coming back and helps build a friendly community where everyone’s activity helps others too. The fixed rate at which $MINT can be exchanged back to ETH also plays a crucial role, as it provides a tangible value to $MINT tokens, making the system attractive and easy to grasp for newcomers. Note that Perpetual Mints is currently in a very early open beta. Use at your own discretion.

Summary

Insrt’s app, Perpetual Mints, makes it fun and rewarding to create and win digital IOUs on the blockchain. Every time users try to win a prize, they get $MINT tokens, making everyone a winner. These tokens have a set value tied to Ethereum, making it easy for everyone to understand their worth. Even though it’s in an early test phase, Perpetual Mints shows a creative way to keep people engaged and sharing value with each other in the online blockchain community.

Reference

https://twitter.com/insrtapp
https://docs.insrt.fun/

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