11
6
Just over a month has passed since the launch of the Duck Hunters game. Over 5,000 active community members have joined the game, and feedback has been collected, which is especially valuable on the run-up to the release of an incubator that will enable swapping EGG tokens for duck NFTÂ images.
The concept, described in the Duck Paper, has proven viable. But a weak spot has been discovered in it, which is the EGG tokenomics. As previously announced, out of 1 million issued tokens, only 200,000 have been allocated for distribution in the projectâs first year. Given that only 50,000 tokens have been unlocked so far and the current market price is $20 (as of May 17, 2021), the projectâs capitalization is $1 million with the target capitalization set at $1 billion. The Duck Improvement Proposal (DIP) aims to ensure sufficient growth potential for the EGGÂ token.
The Duck Paper stipulates swapping 10 EGG tokens for 1 NFT duck. However, with the tokenâs potentially high price, a digital duck turns out to be too expensive for a regular user, while the project aims to keep the entry threshold low.
Therefore, this proposal contains an updated formula of swapping EGG tokens for NFT ducks, based on the number of genesis ducks in the game (T), a total number of issued ducks (N) and a discount coefficient determined by community governance (G). The NFT price (P) for duck number N+1 will be calculated as follows:
P(N+1) = (1 + G*N*0.01 / T) **Â 0.5
At the initial stages, two types of genesis ducks will be released, Elon Duck and Satoshi Duck, with T=2, G=1 and no duck population (N=0).
Based on this formula, the first duck NFT will cost 1 EGG, and each subsequent NFT will be more expensive. For instance, if the number of duck types and G remain unchanged, the 1000th duckâs price will be:
P(1000) = (1 + 1*999*0.01 / 2) ** 0.5 = 2.45Â EGG.
This formula makes duck NFTs more affordable for early adopters who will swap their EGG tokens for ducks at the initial stages. Moreover, with the release of new types of genesis ducks, the price will also slightly decline, making the entry of new genotypes easier.
The main outcome of this improvement is an increase in the value of the EGG tokens, as the first NFT ducks will cost 1 EGG as opposed to 10Â EGGs.
A key factor in forming a digital duckâs price is the discount coefficient (G). Its value (0 to 1) had a substantial impact on the number of EGG tokens that a user needs to pay to get a duck NFT.
The discount coefficient is needed to facilitate regulation of the gameâs entry threshold by a governance group consisting of EGG holders. If necessary, votes could be run, in which EGG holders will be able to vote for or against changing the value of G, based on their weight thatâs proportionate to the number of tokens held by them. Thus, a governance functionality will be added to EGG.
This DAO model will allow for combining the community membersâ expertise to determine NFT ducksâ optimal prices at the projectâs current stage, while keeping the entry threshold low for new collectors.
To date, about 50,000 tokens have been distributed. With the launch of the incubator, the Waves team expects that the majority of tokens will return to the projectâs budget as a result of swaps for duck NFTs. Therefore, it would make sense to run an initial DEX offering (IDO) for those tokens in a bid to broaden the projectâs audience. The first IDO is expected to be held on the service swop.fi. The pool voting is already live on the Swop.fi governance page.
The Waves team is confident about the future of Duck Hunters, about its possible mass adoption and hype around this NFT game. The early stages of the game have shown that crypto enthusiasts also believe in the project and are therefore holding on to its tokens. To meet their expectations, DIP aims to ensure sufficient growth potential for EGG tokens, while making digital ducks affordable for regular users and providing extra privileges for EGGÂ holders.
Thank you Duck Hunters for helping us to move Web 3.0Â forward!
To get the gameâs news and updates, follow the Waves Protocol Twitter and join the Duck Hunters chat!
DIP: Duck Improvement Proposal was originally published in Waves Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.
11
6
Manage all your crypto, NFT and DeFi from one placeSecurely connect the portfolio youâre using to start.
