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Token Sinks & Loops

Token Sinks & Loops

For economies to thrive trade needs to thrive.

The layer-2 Lootverse economy revolves around production and consumption. As we talked about in Part 1, the DAO is at the center of this Lootverse with the Lords & Fungibles ever-increasing utility as more and more modules are built-in. With continuous production of Lords and Resources, sinks and loops need to tightly exist.

Lords Token Loops

Loot Bag Distillation contract

We describe this contract on the characters page. This contract is the entry for Loot bags to be distilled on StarkNet. There will be a small fee paid in Lords on each distillation, which will go to directly to the DAO to be used for maintenance and upgrades on this contract. The fee will be small enough and will be elastic in the supply curve to balance inflation with growth.

The NFT Marketplace

A native marketplace is being designed which is denominated in $LORDS. This marketplace will list NFT assets that are native to the ecosystem. There will be a 5% commission on all trades and this commission will feed into the DAO to be used to continue building the network. Collections could also include a commission to the artist if they choose. Players will be able to seamlessly trade the assets that they generate within the game.

AMM (Automated Market Maker)

A native AMM built on StarkNet will power the trade of resources with players. Players will be able to provide liquidity and be rewarded in doing so. This AMM will allow permissionless trade of fungibles between players and is the liquidity entry and exit to the system. This AMM is inspired by NiftySwap.

Module Loops

As new modules are added to the protocol, the developers of these modules may opt to include a small fee in Lords in order to use this module. This will be up to the developer to decide, and for the player to decide if they want to participate. External modules that require Lords will be optional to participate in.
Some modules voted on via the DAO will receive % of Lords to be distributed to players of this module.

Fungible Token Sinks

The Nexus - Single-Sided Staking

Players can stake their $LORDS and LP tokens in the Nexus and be rewarded per block according to the previous 24hr trading period. Your reward is calculated according to your share of the over offerings.

In-game burning

Resources are consumables. They have an infinite supply and their value comes from consumption. When they are consumed, they are burnt forever, keeping the supply in check.

Crafting

Crafting is another burning function, however, crafting outputs new collectibles and utility tokens that are only accessible via crafting items together. These items come from an ever-growing Crafting ERC1155 item table contract. This is a different contract to the resource contract.