[AGIP-3] Adventure Gold Token Economics Proposal V2
By [Hill], [Eraser], [JX], [heygareth.eth] and the AGLD community.
TL;DR:
We propose to create a synthetic asset called sLoot and implement a mechanism inspired by OlympusDAO’s bonding to accumulate Loot & mLoot into a treasury controlled vault. This vault will generate revenue from directly participating in games, or via lending out to community members. The revenue will be used to buy back AGLD & provide liquidity, developer grants or partnership/marketing budget, whatever the AGLD community decides on. This proposed economics model focuses on consumption/utility of the AGLD token, which is complementary to the V1 model focusing on issuance & distribution on snapshot earlier.
Background:
The v1 proposal aims to solve distribution & issuance for AGLD in a non-discriminative & sustainable way. Now, what the community really wants is to increase utility & demand of the AGLD token, in a healthy way that also boosts the prosperity of the Loot ecosystem by rewarding developers. We also noticed that the overlap between Loot & AGLD holders has been on the decline. The respect of AGLD should not be taken for granted. Rather, the AGLD community should put in the effort and earn our own respect. This proposal is set out to achieve exactly that. By introducing mechanisms that allow the AGLD treasury to accumulate Loot & mLoot, the AGLD community is more aligned with the Loot community and has the incentive to promote and push the Loot ecosystem forward.
Target & principles:
- Align the interest between AGLD & Loot community
- Boost prosperity in AGLD & Loot ecosystem
- Earn Loot governance influence.
Inspiration:
OHM + YGG + Axie Infinity
- OHM: the bonding mechanism to help the AGLD community acquire Loot & mLoot.
- YGG + Axie Infinity: a treasury owned NFT vault to generate revenue from ecosystem games.
Design：
- Issue a new erc-20 token: sLoot. Users mint sLoot by burning AGLD with value equivalent to a floor Loot. For example, if Loot floor price is $1500, and AGLD price is $3, burning 500 AGLD will mint 1 sLoot.
- sLoot can participate in staking and earn the same amount of AGLD inflation as a Loot. More details on AGLD inflation in v1 proposal.
- Users can contribute 1 Loot and 1 sLoot to trade with the smart contract and get 2.5 sLoot. This 2.5 sLoot is not given to users immediately, rather vesting for 5 days to ease off sLoot sell pressure. That would be 20% claimable after each day. For example, after 24 hours the user can claim 0.5 sLoot, after 48 hours the user can claim 1 sLoot, etc.
- Users can contribute mLoot and trade for sLoot in a similar way. Assuming that mLoot has a floor price at 1% that of Loot’s floor price, contributing 100 mLoot and 1 sLoot wil get 2.5 sLoot. Vesting as above applies.
- Loot & mLoot contributed into the vault will be controlled by the AGLD DAO. The community can vote on directing them to any preferred utility. Whether it’s having them managed by an external guild/team, or putting them towards a NFT lending platform, or using them for voting on Loot governance.
- Revenue generated from activities or potential future airdrops will be directed to the AGLD treasury. This allows the treasury to provide liquidity & buy back AGLD, establish developer grants & ecosystem funds, or marketing/partnership budgets to be built upon.
Flywheel:
- Rational users who wish to enjoy the staking reward will buy AGLD to mint sLoot, buy Loot/mLoot, then trade with the smart contract for more sLoot and then stake to earn.
- Demand on sLoot will drive demand for AGLD, which should drive up the price of AGLD and staking yield, which should attract more users to mint sLoot.
- The AGLD DAO now holds Loot & mLoot, which incentivises pro-Loot community behaviour. Such as supporting good gaming projects that offer play-to-earn opportunities. The treasury will never sell those Loot & mLoot contributed in the vault, unless the AGLD DAO voted to do so, which is extremely unlikely.
- Revenues derived from Loot & mLoot in the vault, which is assumed to go up as the ecosystem prospers, may go to buy back AGLD & provide liquidity, further driving up AGLD value and staking yield, incentivising more minting of sLoot.
Impact:
- This design allows the treasury to accumulate Loot & sLoot without issuing additional AGLD than the predetermined inflation curve.
- sLoot should hold the price of a floor Loot on the secondary market, given that the cost of acquiring an sLoot and Loot is the same (sLoot slightly cheaper due to bonding incentives) and that sLoot and Loot enjoys the same benefit (under the utility of staking to earn AGLD inflation). This offers a synthetic financial instrument to Loot’s floor price but with greater liquidity & composability.
- Accumulated Loot & mLoot can be used to benefit the Loot ecosystem. For example, we might start with lending Loot & mLoot to players who applied to play a specific game. Or lend to players of a specific game for free and earn a game’s in-game token. This design encourages the community to take mLoot more seriously and start to consider its potential.
- Revenue generated from Loot & mLoot in the vault can be contributed to AGLD liquidity directly, which earns fees over time as well as ensuring a less volatile pricing on AGLD in the long run. The treasury will not withdraw the liquidity, unless in very unlikely cases, voted to do so by the AGLD DAO.
- Accumulated Loot can be used to influence Loot governance. If holding a significant portion of Loot out of the total 8000 bags, AGLD may to some extent govern the Loot ecosystem by governing our own treasury.
- Yes: I support this proposal
- No: I am against this proposal
0 voters