This proposal is an extension of the previous token economics proposal V1 with minor modifications. The extension seeks to reflect the latest development of the Loot ecosystem. The previously proposed V2 has met with unforeseen market turbulence associated with the Play2Earn economy as well as algorithmic stablecoins, by which V2 was heavily inspired. This V3 proposal takes a more gradual and pragmatic approach than V2, as well as addresses more future work mentioned in V1.
TLDR:
• New AGLD tokens are issued to staked Loots, staked mLoots, staked Genesis Adventurers and staked Realms. They will be mentioned collectively as Lootverse NFTs later in the proposal.
• The amount of AGLD that will be distributed between staked Lootverse NFTs is proportional to the floor market cap of such Lootverse NFTs.
• Issuance happen on a weekly basis (1 epoch).
• Issuance on the first year will be 8,000,000 tokens (10% inflation on the 1st year).
• Havlings happen yearly (approaching a soft cap of 20% inflation from the initial 80M total supply).
The changes in V2:
- Genesis Adventurers and Realms are included to be eligible for staking alongside with Loot & mLoot. This is to reflect the growth of the Loot community thanks to the development of the community of the Genesis Adventurers and the community of Realms.
- 50% of inflation will go to the AGLD DAO treasury, the remaining 50% will be distributed to staked Lootverse NFTs according to their weekly average floor market cap.
- The AGLD DAO will vote to decide where to spend the accumulated AGLD from inflation to best incentivize community developement.
V1 proposal can be found here for reference: Adventure Gold Tokenomics Proposal v1
Target (same as V1)
Principles (same as V1)
Token Utility (same as V1)
Means of Distribution (changes in bold):
We here proposed that additional AGLD issuances should be distributed to users who stake Loot, mLoot, Genesis Adventurers and Realms.
Epoch (same as V1)
Staking model and Formulas (changes in bold):
New AGLD tokens are issued to staked Loots, staked mLoots, staked Genesis Adventurers and staked Realms. The amount of AGLD that will be distributed between the Lootverse NFTs is proportional to the floor market cap of that Lootverse NFT to ensure that stakers are treated fairly. For example, if Loot has a floor market cap 10 times that of mLoot’s, Loot stakers collectively should be entitled with 10 times the reward mLoot stakers receive in total.
The average floor market cap for Loot is calculated with the average floor price of Loot multiplied by the average circulating supply of Loot. The same formula applies for Lootverse NFTs.
AvgLootFloorMCap = AvgLootFloorPrice * AvgLootCirculatingSupply
AvgMLootFloorMCap = AvgMLootFloorPrice * AvgMLootCirculatingSupply
AvgGAFloorMCap = AvgGAFloorPrice * AvgGACirculatingSupply
AvgRealmsFloorMCap = AvgRealmsFloorPrice * AvgRealmsCirculatingSupply
Then a weighting is produced by looking at Lootverse NFTs respective percentage when their average floor market cap is added together. Ideally the weighting is automatically calculated at the end of each epoch. The ratio at the beginning is to be adjusted by the DAO governance mechanism.
LootWeighting = AvgLootFloorMCap / ( AvgLootFloorMCap + AvgMLootFloorMCap + AvgGAFloorMCap + AvgRealmsFloorMCap)
MLootWeighting = AvgMLootFloorMCap / ( AvgLootFloorMCap + AvgMLootFloorMCap + AvgGAFloorMCap + AvgRealmsFloorMCap)
GAWeighting = AvgGAFloorMCap / ( AvgLootFloorMCap + AvgMLootFloorMCap + AvgGAFloorMCap + AvgRealmsFloorMCap)
RealmsWeighting = AvgRealmsFloorMCap / ( AvgLootFloorMCap + AvgMLootFloorMCap + AvgGAFloorMCap + AvgRealmsFloorMCap)
The total number of AGLD tokens available for staked Loot is calculated by multiplying it’s weighting percentage to the total reward. Then each individual Loot’s reward is calculated by dividing Loot’s overall share of reward by the amount of Loot that are staked. This applies to Lootverse NFTs as well:
No.AGLDperLoot = TotalReward * LootWeighting / No.LootStaked
No.AGLDperMLoot = TotalReward * MLootWeighting / No.mLootStaked
No.AGLDperGA = TotalReward * GAWeighting / No.GAStaked
No.AGLDperRealms = TotalReward * RealmsWeighting / No.RealmsStaked
In the end, each individual staker’s entitled reward is calculated by adding up the reward from all staked Lootverse NFTs in the entirety of the past epoch. (in V1 “the average number of NFTs staked” are used.）
A staked Lootverse NFT is only eligible for reward if it has been staked throughout the entire epoch. It will not be eligible if staked after the epoch has stared or unstaked before the epoch has ended.
Inflation (same as V1)
Potential Implications for V2:
With staking proposed in V1 not rolled out yet, we believe similar implications might still apply to the Loot ecosystem. The new inclusion for The Genesis Adventurers and the Realms expands the beneficiaries of AGLD’s UBI design and help maintain a more representative coverage of AGLD’s influence.
Future work (in addition to V1):
addressed from V1:
- Treasury: the DAO after V2 is directly benefiting from inflation, which allows for more a reasonably incentivized DAO structure that is able to generate more value for the entire Lootverse as a whole.
- Expanded currency stack: the AGLD DAO is talking to a few up-coming games on potentially integrating AGLD as in-game currency. Nothing is final yet but we will do our best to keep the community posted.
New Future work:
- Growth hacking: AGLD is effectively positioned as a growth tool for games & applications in the Lootverse. The AGLD DAO will evaluate the traffic attracted to AGLD and seek to provide growth as a service.
- Infra play: the AGLD DAO is actively exploring infrastructure demand & solutions on the market from Lootverse applications that is now possible to be met with AGLD’s new treasury in place.