As a loot owner, I was happy to see Dom release mloot today, since I do believe that the long-term success of the loot ecosystem is contingent on having a low barrier of entry. That said, I think there’s another way we can increase the supply of bags, while not affecting the price of OG bags as much as mloot did.
The mechanism is breeding. Imagine we deploy a “breeding market” contract where two bag owners can put up their bags for breeding, for a price (say in ETH or AGLD). A new user who wants a bag can pay the price to breed a bag.
The bred bags are generated by the breeding contract, so there’s a clear distinction between the OG bags and the subsequent bred bags. In fact, people can breed bags with bred bags too, while using the “generations + cooldown” mechanism that CryptoKitties used to prevent unbounded growth of bags.
In summary, by using a breeding mechanism, we get to create new bags while preserving (and potentially increasing) the value of OG bags, since:
- Owners of OG bags can earn yields by offering their bags for breeding.
- OG bags have the shortest cooldown and perhaps the highest probabilities to breed high-quality bags
TLDR: breeding may be a way to increase the supply of bags, while preserving the value of OG bags.
Would love to hear your thoughts on this!