Mad Mondays: Understanding Mad Droids Tokenomics

Mad Droids
5 min readMay 24, 2022


Mad Droids is unique in the sense that it will be one of the first projects to address one of the most critical problems of inflationary currencies encountered in most “play-to-earn” games, such as “Axie Infinity” and “Pegaxy”.

That’s why today on Mad Mondays, we’ll talk about something quite important, something that is arguably the cornerstone. It is essential that you understand the economics behind the Mad Droids universe with its MAD Token and DROID Token.

The Mad Droids game incorporates a durability or maintenance mechanism found in traditional successful games such as “Farmville” and “Age of Empires”, which requires constant maintenance or player participation to create a healthy and sustainable ecosystem.

Understanding the Tokenomics of a Crypto Token

Before moving on to see the Mad Droids tokenomics, we need to first understand what a cryptocurrency token is. Simply put, a cryptocurrency token is a cryptocurrency that is based on a blockchain platform and can be exchanged or swapped with another cryptocurrency from the same blockchain (via a decentralized exchange — DEX) or from a different one altogether (via a centralized exchange CEX). Tokens typically give incentives to those holding them.

Now, what is tokenomics? The term tokenomics is formed by combining the words token and economy. Thus, the term tokenomics basically describes the economics of a crypto token. It refers to all the characteristics of a crypto token that make it desirable to investors.

The tokenomics of a specific crypto token is usually clearly detailed in the project’s whitepaper, and should help you understand the crypto token’s purpose, functionality, allocation policy, etc.

Fighting Inflation, Defending the Economy

As mentioned earlier, “Mad Droids” incorporates a durability mechanism, that is, it is necessary to “repair” your assets so that they are not lost or destroyed. The Mad Droids you capture will need to be leveled up and “repaired”, and that will cost you, thus maintaining a constant token burn.


Once the player starts the game, he will begin exploring the world in hopes of hunting down Mad Droids and reprogramming them. This part will implement various uses for the DROID and MAD tokens.

“At the heart of the Mad Droids ecosystem is the player economy, which is fueled by DROID and MAD tokens.”

In a previous article, we talked about Mad Droids’ governance token, the Droid Token. Within the Mad Droids game and platform, the DROID token will be needed to perform important operations such as: marketplace purchases, minting and upgrading NFTs, among others. This token can be acquired through public exchanges, in-game activities, and other forms of community involvement. The governance and utility token (DROID) will be an ARC-20 token, which will be deployed on the Avalanche Network.

On the other hand, we have the Mad Token, which will be earnable through participation in the game and other initiatives that support the ecosystem. These tokens are mainly issued by the Mad Droids, once the player has successfully captured and reprogrammed them to do good deeds. MAD tokens can be used in the game or through the Mad Droids platform for buying, mining, upgrading, selling, trading and other functions.

After use in the game, 100% of MAD tokens are permanently burned, removing them from the circulating supply to aid token deflation. To help prevent and reduce the chances of an uneven balance of the ratio of issuance to burning of MAD tokens, additional utilities and perks have been created both in-game and in the marketplace to help remove them from circulation. For all transactions on the Mad Droids Marketplace that require the MAD token, a 5% service fee is applied where 2.5% is permanently burned and the other 2.5% is added to the Mad Droids Treasury.

“In some cases, a combination of DROID and MAD tokens will be used in the game to help improve the way the Developer travels and enhances his powers. Use cases where only the MAD token is required will be crafting and upgrading items, and reducing cooldowns.”

The issuance of the DROID governance token will be unlocked sequentially over a 5-year period, following the TGE (Token Generating Event) and public launch. The total supply of the DROID token is one billion (1,000,000,000,000) and will never be exceeded, nor will additional DROID tokens be mined for any reason. The tokenomics for the DROID governance and utility token and as we discussed a bit above, will incorporate burning mechanisms, this to help create a deflationary supply.

The Allocation & Distribution of Tokens

Make sure you understand how the token will be distributed. Most crypto tokens are generated through a fair launch or they are pre-mined. In the case of Mad Droids, the distribution of the DROID token will be made as follows:

As you can see, all the allocation amounts have already been determined. Do you want to participate in the DROID Token Allocation? Our registration for the private allocation rounds has already started! Just follow the link and register:

We look forward to your feedback! It is very important for us that you are up to date, and give us your suggestions.

In our next edition of Droid Talks 🤖 (Remember every Friday) we will dive deeper into this subject. Don’t forget to send us your questions!

Learn more about Mad Droids:

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Mad Droids

Mad Droids Universe brings incredible adventures to the real world through AR or XR technology.